Life Insurance (1)
Money back plans are variants to the endowments plans. The key difference is that in an endowment plan on maturity the sum assured and bonuses are paid to the policyholder on maturity; and in a money back plan the benefits are paid out periodically during the term of the policy.
The money back plan may provide for a part of the sum assured to be paid back at regular intervals during the term of the policy.
Any remaining sum assured, after paying the periodic money back payments, and accumulated bonuses are paid at the maturity of the policy.
In the event of death of the life insured, the full sum assured is paid to the nominee or next of kin. That is to say that the sum assured is not reduced by the amount paid during the term of the policy for the purposes of death benefit.