How Does A Money-Back Policy Function?
Let us understand the working of a money back policy with the help of an example:
Suppose you bought guaranteed money back plan from a reputed insurer for a term of 20 years. Now, you would start receiving survival benefits a few years into the plan. 20% of the sum assured would be paid as regular income periodically. The balance is paid in the form of maturity at the end of the policy term. The benefit in the form of guaranteed cash can be availed either on a monthly or yearly basis, depending on your need.