Money Back Term Insurance is a type of term insurance plan that provides regular payouts at specific intervals during the policy term. In addition to life cover, this plan ensures liquidity, making it ideal for those who want financial security along with periodic returns.
Key Features of Money Back Term Insurance:
✔️ Life Cover – Provides financial protection to the policyholder’s family.
✔️ Periodic Payouts – A percentage of the sum assured is paid at regular intervals.
✔️ Maturity Benefit – If the policyholder survives the term, they receive the remaining sum assured.
✔️ Tax Benefits – Premiums paid and payouts received are eligible for tax benefits under Section 80C and Section 10(10D) of the Income Tax Act.
💡 Ensures Financial Stability – Unlike traditional term plans, it provides liquidity during the policy term.
💡 Best for Milestone Planning – Helps plan for important financial milestones like children's education or home loans.
💡 Dual Benefit of Protection & Returns – Offers both life cover and periodic payouts.
💡 Peace of Mind for Policyholders – Knowing that one will receive payouts at different intervals provides financial confidence.
✅ Individuals Looking for Regular Payouts – If you need funds at regular intervals, this plan is a great fit.
✅ People with Dependents – Provides financial security for family members even if something happens to the policyholder.
✅ Those Who Want Tax Benefits – Premium payments and maturity payouts enjoy tax exemptions.
✅ Salaried Individuals & Business Owners – Can use the payouts for investment, business expansion, or personal financial goals.
Here’s an example to understand it better:
🔹 Suppose Rahul purchases a 20-year Money Back Term Insurance plan with a sum assured of ₹20 Lakhs.
🔹 He will receive 20% of the sum assured at the end of the 5th, 10th, and 15th year.
🔹 If Rahul survives the policy term, he will receive the remaining amount at the end of the 20th year.
🔹 In case of his unfortunate demise during the term, the full sum assured is paid to his nominee.
This structure ensures that Rahul gets both financial security and liquidity over the years.