“Money-back endowment policy” is a type of life insurance policy that provides periodic payouts or survival benefits to the policyholder over the policy term, in addition to the death benefit.
Under a money-back insurance policy, the policyholder pays a regular premium for a specified term, usually ranging from 10 to 25 years. If the policyholder survives the policy term, they receive a percentage of the sum assured as a survival benefit. The percentage of the sum assured paid out as survival benefit varies depending on the policy terms and conditions.
For example, if the policyholder has a money-back insurance policy with a sum assured of $100,000 and a policy term of 20 years, they may receive a survival benefit of 20% of the sum assured every five years, i.e., at the end of the fifth, tenth, and fifteenth years. At the end of the 20-year policy term, the policyholder receives the remaining 40% of the sum assured along with any accrued bonuses as a lump sum payout.
Money-back insurance policies are a popular choice among individuals who want to enjoy periodic payouts while still having life insurance coverage. However, these policies generally come with higher premiums compared to term life insurance policies, and the payouts may be subject to taxes. It is important to carefully consider the terms and conditions of a money-back insurance policy before purchasing one to ensure that it meets your needs and budget.