5 Best Money Back Plans 2023

Feature, Benefits and Eligibility for MB Policy

Money Back Policy is an ideal investment plan to secure the lives of your family members and yourself. Read on to know about the best Money Back Plans and their related information in this story.

What is a Money Back Policy?

A money-back insurance policy is a plan that allows the insured to avail the dual benefits of life cover as well as investment. It is an endowment plan that offers the advantage of regular returns at regular intervals during the tenure of the policy. Further, since guaranteed money back plan also offer the benefit of insurance, the loved ones of the insured can have financial protection in the event of sudden demise of the policyholder.

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.

3 Features of Guaranteed Money-Back Policy

1. Assured returns – The best feature of a guaranteed money back plan is that it allows guaranteed money back plan benefit in the form of assured returns periodically during the policy tenure. The returns are pre-decided at the time of policy purchase.

2. Additional Income – With a guaranteed money back plan, you receive a fixed pay out at regular intervals throughout the policy duration. This amount serves as an extra income to help the insured to fulfill financial goals.

3. Bonus – In addition to the sum assured, most guaranteed money back plans also offer an extra pay out in the form of bonus at the end of the policy term.

5 Benefits of Money Back Plan

1. Accrued returns – Guaranteed money back plan gives you a maturity benefit at the end of the term, securing your financial future.

2. Added Bonus –  An extra income in the form of added bonus is also received by the policyholder at the end of the policy term with most Money-Back plans.

3. Second income source  –   The regular pay outs offered by money back plan serve the purpose of a second income source for the policyholder.

4. Protection of Life - Money back policy provides insurance and investment benefits. It ensure financial security for your family if you pass away during the policy term.

5. Tax Benefits -Premiums paid under certain money back policies are tax-exempt under section 80C of income tax. The benefits received by the insured are also tax-free.

Eligibility Criteria for Guaranteed Money Back Plan

Policy seekers of money-back plan are required to meet certain eligibility criteria as listed below:

1. Depending on the exact guaranteed money back plan you want to buy, your age should match the minimum and maximum requirement to qualify for the plan

2. The minimum and maximum entry age  varies depending on policy

3. Policyholder must make the premium payment as guided by the policy term

Best Guaranteed Money Back Plans 2023 available Online, India

Below are some of the Money-Back Policies in India available online:

Plan Name

LIC Money Back Plan 20 Years

LIC Bima Bachat

HDFC Life Super Income Plan

Eligibility in Years

Policy Tenure

Maturity Age

SBI Life-Smart Money Back Gold



Depends on the policy term



9, 12, 15

16, 18, 20, 22, 24, 27

12, 15, 20, 25





How to Choose A Guaranteed Money Back Plan

Choose your guaranteed money back plan wisely to maximize the benefits you receive.

Consider your financial goals and choose a suitable guaranteed money back plan accordingly. Decide on the policy tenure based on your goals, whether long or short. Money back plans typically have an average tenure of 20 years.

Another thing to look out for while buying a guaranteed money back plan is the guaranteed pay outs received at regular intervals. You should receive an amount that should fulfill your future expenses

Check for the best money back policy to enjoy tax benefits on premiums, maturity amount, and accrued benefits. Some plans also provide survival benefits at intervals. Note that not all guaranteed money back plans offer tax benefits.

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