Can I Get My Insurance Premium Back Under A Money Back Plan?


4 min read

Is Getting Insurance Premium Back Under A Money Back Plan Possible?

Did you know that your family’s financial interests can be taken care of even when you are not around? How? Well, you would be glad to know that it can be done through a money-back insurance policy. The idea of money-back insurance aims at safeguarding the financial interest of the policyholders in the event of the death or illness of the insured. A money-back policy is one of the most sought-after life insurance products in the country. The reason is that they integrate insurance with investing. Under one such policy, you will receive compensation each month for surviving as a policyholder. People, who look for a guaranteed return on their investments, insurance coverage, and monthly payouts, should consider a money-back plan. The money that they have to pay to continue the plan is called a premium.

Getting insurance premium back under money back plan 

Money-back plan means that the money is returned to the policyholder as a reward for survival after a certain period. The money-back depends on the survival of the policyholder. In the event of the death of the policyholder, the beneficiary will receive the sum guaranteed along with earned bonuses. While receiving the insurance money being refunded to you may seem tempting, they certainly come with some disadvantages too.  So, let us today discuss the advantages as well as disadvantages of premium return in the money-back term plan.


  • On surviving through the policy term, you will get your money back by buying a money-back insurance plan
  • The money you get from one such plan is not taxed as it is not considered an income. It is rather considered as the refund of payments that you have paid
  • By making all the payments on time and not canceling the policy, you will get the money back that you spent as premiums. Otherwise, the return of the premium of your policy might not be paid at the end of the term.


  • The money returned to you does not come with accrued interest
  • To get the money back, you would be required to keep the insurance for the entire period and keep paying all the payments in the form of premium
  • Based on the plan, if you cancel your insurance before the end time of the term or just skip paying the premiums, you may not receive your money back.

Return of premium in money-back policies varies based on the insurance company

The return of premium insurance is not the same with each of the insurance companies. This is why going through the terms and conditions is so important. For example, some of the return of premium insurance accumulates monetary value over the period.  The cash value can be used for taking out loans or withdrawing the amount. If the loan is not returned, the amount taken out is deducted from the death benefit (in case the policyholder passes away) or your money back (if the policyholder does not die).

Read More: 4 Best Single Premium Insurance Plans in India .

Features of the money-back plan

The money-back plans come with several distinct features that make them unique from the other life insurance products. Let us discuss some of them.

  • The money-back plans come with low-risk investment options and insurance coverage
  • With a money-back plan, the policyholder can get a regular source of income, which is called Survival Benefits for the term of the policy
  • If the policyholder passes away during the tenure of the policy, the entire sum assured is paid to the beneficiary, irrespective of the amount that is already paid through the Survival Benefits.

Read More : Difference Between Money Back Plans and ULIPs.

Eligibility criteria for money back policy

To buy a money-back policy, one has to meet certain criteria. The eligibility criteria are listed herein below:

  • The policyholder has to be above the minimum entry age and under the maximum entry age. The entry age may vary from one insurance company to the other
  • The policyholder has to keep paying the premium as per the guidelines of the policy.

Documents needed for money back policy

Certain documents are needed for applying for a money-back plan. The documents include:

  • An age proof document
  • Address proof document
  • An application that is duly filled in
  • Medical reports (if asked by the insurer).

2 Best Money-back plans in India

Here are some of the money-back plans in India mentioned below.

1.LIC Money Back With Profit

The feature and benefits of the plan include:

  • It is a comprehensive life insurance cover against death
  • The amount paid by the insurer on death is the sum assured and all the bonuses as a lump sum
  • With-profit plan which is a part of the profits
  • Surrender values

2. HDFC Life Super Income Plan – Money Back policy

The feature and benefits of this money back plan include:

  • Limited premium paying terms, which are 8, 10, or 12 years
  • Guaranteed annual income for 8, 10, 12, or 15 years
  • Coverage against death all through the premium paying term as well as the pay-out period
  • If the short medical questionnaire is completed, there is no need for a medical test
  • Regular income at 8% to 12% rate of sum assured on maturity.

Apart from these, several money-back plans are available that you can opt for. The best part is that you can find them all online. So, take a look at such plans and choose the one that suits you the best.

May 20, 2022
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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