If you want to secure the future of your loved ones and yourself, a money back policy can be the ideal insurance product for you. Read on to know why.

What is a money back policy?

A money back policy is a type of life insurance product that provides the dual benefit of investment and protection. With a money back policy, you can receive returns at regular intervals during the policy term. A money back policy also provides a life cover that keeps your loved ones financially protected in case of an unfortunate event.

COMP/DOC/Apr/2022/294/0155

How does a money back policy work?

Here’s an example to understand how a money back policy works:

  • Suppose you purchase a money back policy, such as the ICICI Pru Cash Advantage Plan, you will receive a regular income right after the end of the premium payment term. The guaranteed1 cash benefit* can be received monthly or yearly, as per your requirements
  • At the end of the policy term, you will receive a guaranteed1 amount along with bonuses^
  • The life cover in a money back policy will provide your loved ones with a lump sum amount in case of an unfortunate event

1 Terms & Conditions apply

Benefits of a money back policy

  1. Accumulated returns:

    Once the policy term ends, you receive a guaranteed amount as maturity benefit. This can be used to fulfil your financial goals like buying a house, child’s education, retirement goals, and much more

  2. Added bonus:

    You receive higher returns in the form of bonuses, such as a revisionary bonus, or terminal bonus that are added to your policy over time

  3. Secondary source of income:

    A money back policy offers a regular income. You start receiving this income either monthly or yearly, right after your premium payment term ends. It offers a continuous stream of money at regular intervals which can act as a secondary source of income

  4. Life cover#:

    Along with the investment, the life cover offered in the plan provides financial security to your loved ones in case of an unfavourable event

  5. Tax benefits:

    A money back policy is primarily a life insurance plan. Hence, the premium paid is tax-exempt~ up to ₹ 1.5 lakh annually under Section 80C of the Income Tax Act of 1961. The benefits received are also tax-free~ under Section 10(10D) of the Income Tax Act of 1961

Things to know before buying a money back policy

  1. Understand the features:

    Understand how a money back policy works so you can fully benefit from investing in such a plan. It helps to get a clear view of the plan you wish to invest in, including the kind of bonuses the company offers, the maximum and minimum life cover available under the plan, the credibility of the insurer, rate of return, among other things

  2. Stay informed of the exclusions:

    A money back policy may not offer riders, such as critical illness cover, personal accident cover, or any such add-ons. Make sure you check the exclusions before purchasing a policy

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# Life Cover is the benefit payable on death of the life assured during the policy term

* Guaranteed Cash Benefit (GCB) is payable in advance during the payout term provided the life assured is alive and the policy is fully paid, payout term begins as soon as the premium payment term is over and terminates at the end of the policy term. GCB can be received in monthly or annual installments. GCB is a percentage of the Guaranteed Maturity Benefit (GMB) and depends on cash benefit mode opted. It is equal to 1% of GMB every month throughout the payout term of 10 years for monthly mode and 11.5% of GMB every year for annual payout mode.

^ Reversionary bonuses may be declared every financial year and will accrue to the policy if it is premium paying or fully paid. Reversionary bonus once declared is guaranteed and will be paid out at maturity or on earlier death. A terminal bonus may also be payable at maturity or on earlier death.

1 Guaranteed Maturity Benefit is the Sum Assured on Maturity and will be calculated, at inception, based on your premium, premium payment option, premium payment mode, Sum Assured on Death, cash benefit mode, age and gender. Guaranteed benefits are payable only if all premiums are paid as per the premium paying term and the policy is in-force till the completion of entire policy term opted

~ Tax benefits are subject to conditions under Section 80C, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Good and Service tax and Cesses, if any will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.

ICICI Pru Cash Advantage UIN 105N132V02

W/II/4770/2021-22

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