LIC – Life Insurance Products

Money-Back Plans

Life insurance plans that may provide periodic payouts during the policy term.

How we help

A money-back plan returns part of the sum assured at set intervals during the policy term, while life cover continues on the full sum assured. The balance, with any bonuses declared, is paid at maturity.

The payouts can be timed to expenses you can see coming, such as a child's school or college years. Because money comes back during the term, the premium is higher than an endowment plan with the same cover.

We map the payout years against your planned expenses and explain what happens to the cover and the maturity amount after each payout.

What it covers

Periodic survival benefits
Life insurance protection
Payouts subject to policy terms

Policy benefits, eligibility, premiums, and terms vary by insurance product.

Before you decide

Points to check

01The payout years, and how they match the expenses you are planning for
02Whether life cover continues on the full sum assured after each payout
03The premium compared with an endowment or term plan for the same cover
04The maturity amount left after the survival benefits are paid

Common questions

What people ask us about Money-Back Plans

Does life cover reduce after each payout?

In most money-back plans the death benefit stays at the full sum assured even after survival benefits are paid. The wording differs between plans, so we check it for the policy you are considering.

Are the payouts taxable?

Life insurance payouts can be exempt under Section 10(10D) of the Income Tax Act when the policy meets its conditions, including limits on the premium. We check this for the specific policy.

Who are money-back plans meant for?

People who want protection along with lump sums at known points, such as a child's school and college years. If protection is all you need, a term plan costs much less.