Is health insurance with money back policy worth it?

To protect the family’s financial interests in case of the policyholders’ death or serious illness, many of the best health insurance plans offer money back policy. These plans give back money at regular intervals of times which can help you meet your financial requirements.


It is a way of securing your family’s financial needs. Currently, in India, money back policy is the most common health insurance policy. Money back payouts are called survival benefits. If the policyholder dies before the tenure, then the full assured sum is paid regardless of the survival benefits paid before. At maturity, a lump-sum amount is paid to the policyholder. This is if the holder doesn’t opt for regular payouts.


• To calculate survival benefits, a percentage of the sum assured is determined.

• Survival benefits are given at a fixed period of time. Each policy has a different payout structure. Survival benefit makes these policies better than many insurance plans currently available. They can be considered as a reward from the insurance company for taking care of your health.

• Once the plant matures the remaining sum assured is paid as maturity benefit. In case of death, the entire sum assured is paid irrespective of the survival benefit given.

• Health Insurance Money-back plans generally come as participating plans where bonuses are added. On maturity or death, the accumulated bonus is paid back. Bonus amount helps raise the payout amount in a money back policy.

• There are also riders available for the insured individuals that help increase their cover. They are usually adding on. Some policies give the option to continue the life cover even after the policy has matured.

• In case of death, this policy helps secure the future well-being of the family members. The nominees are guaranteed to receive the money. The guaranteed nature of the policy makes this a less risky policy option than endowment-based options.

• These policies provide liquidity (pay-outs can provide you with the money required to fulfil financial goals) and provide risk-free returns (by choosing the best money back policy, you can earn risk-free returns).

• With market-based investments, there is risk involved in case the market moves in an unfavorable direction. That uncertainty is removed by the guaranteed nature of the policy. You can invest without any tension of losing your money.

• This policy qualifies for tax deduction under section 80C of Income Tax Act.


• Survival benefits

• Death benefits

• Maturity benefits

• Sum assured

• Bonus amount

• Reversionary bonus- bonus declared at the end of every year by the insurance company.

• Terminal bonus- Paid at the end of the term of the policy or death. Paid as an acknowledgement of consistent payments.

Money back policy looks like the best health insurance policy currently available. You should choose this type of policy only if it meets for insurance requirements. There are many companies which provide good offers. It is important to understand that Health insurance money back policy is not a full-fledged investment option; the returns are not like the returns received from the securities market.


ManipalCigna Health Insurance Company Ltd (Formerly known as CignaTTK Health Insurance Company Limited) | CIN U66000MH2012PLC227948 | IRDAI Reg. No. 151 
Reg. Office: 401/402, 4th Floor, Raheja Titanium, off. Western Express Highway, Goregaon (East), Mumbai- 400 063 | Toll free number – 1800-102-4462 | Website address –
Trade Name / Trade Logo belongs to MEMG International India Private Limited and Cigna Intellectual Property Inc. and is being used by ManipalCigna Health Insurance Company Limited under license. For more details on risk factors, terms and conditions, please read the sales brochure/ sales document available on our website (Download section) before concluding a sale.

Toll free

  • linkdin
  • facebook
  • twitter
  • youtube