What is money back plan?

In insurance what happens, if you buy an endowment policy it means you will not get anything in between. Suppose you have bought a 20 year plan. It means only if a person dies during a term of the policy his beneficiaries will get the benefits. Otherwise at thee end of 20 years, at the maturity only that policy holder will get benefits described in the policy.

If somebody buy's a money back plan. In money back plan at the regular interval some money is paid back to the policy holder. For example a policy says that it will pay some regular money at the end of every five years. So, in case of a 20-year policy suppose every five year the person will get some percentage. It is not fixed, it may be 20 percent of the sum assured every five years. It may be 15 percent of the sum assured every three years. It depends on the product. But it means there is a survival benefit because the person survived throughout the term. So, at every point of time whatever decided the person himself will get the benefit which is known as survival benefit and because you are getting the survival benefit back it is known as money back.