HDFC Life's Money Back Plan enables you to get regular cash back at periodic intervals and offers financial protection to your loved ones in your absence. HDFC Life’s New Money Back Plan is a participating insurance plan. It is a traditional insurance plan with bonus facility. Under this money back plan, the premium needs to be paid till the end of the policy term, and the survival benefit is paid at the end of every four years. The balance amount is payable on maturity along with the accrued bonus. If the policyholder dies within the policy tenure, the entire sum assured is payable as a death benefit along with an accumulated bonus, irrespective of the amount paid during the policy tenure.
Death benefit: In the event of the death of the policyholder, the nominee receives the sum assured plus accrued bonuses specified under the plan. The death benefit is paid, irrespective of the amount already paid as survival benefit during the policy term.
Survival benefit: A percentage of sum assured is paid as survival benefit after every four policy years.
| Policy term | 4th year | 8th year | 12th year | 16th year | 20th year | 24th year |
|---|---|---|---|---|---|---|
| 12 years | 25% | 25% | Remaining 50% + bonus | |||
| 16 years | 25% | 25% | 25% | Remaining 25% + bonus | ||
| 20 years | 20% | 20% | 20% | 20% | Remaining 20% + bonus | |
| 24 years | 15% | 15% | 15% | 15% | 15% | Remaining 25% + bonus |
Maturity benefit: The remaining sum assured and accrued bonus is paid as maturity benefit which is paid to the policyholder on survival till the end of the policy term.
Income tax benefit: The premiums paid up to Rs. 1,50,000 towards the policy are allowed as a non-taxable income each year under Section 80C, and the maturity benefits are tax-free under Section 10(10D) of the Income Tax Act, 1961.
The tax benefits are subject to change as per the prevailing tax laws.
| Parameter | Minimum | Maximum |
| Policy term | 12,15,20 years | 24 years |
| Premium payment term | Equal to policy term | |
| Entry age | 14 years | 53 years |
| Age at maturity | NA | 65 years |
| Annual premium | Rs. 10,000 for annual mode Rs. 12,000 for other modes |
No limit on the maximum premium amount |
| Premium payment modes | Yearly, half-yearly, quarterly and monthly | |
Riders: There is no optional rider under this plan.
Guaranteed minimum surrender value: On payment of premium for a continuous period of three years from the policy inception, the policyholder is eligible to receive a guaranteed minimum surrender value.
Loan: The policyholder is not eligible to avail any loan.
Alterations: Following alterations are allowed during the policy term; however, they are subject to the terms and conditions specified by the insurer.
Suicide: In case the policyholder commits suicide within one year from the policy commencement or policy revival, the company is not liable to pay any of the policy benefit to the nominee.
Sample annual premium details for a healthy male (non-smoker, non-tobacco user) of 30 years with sum assured of Rs. 2,00,000.
| Policy term/age | 30 years | 35 years | 40 years |
| 24 years | Rs. 13,830 | Rs. 14,272 | Rs. 15,074 |
| 20 years | Rs. 15,304 | Rs. 15,540 | Rs. 16,038 |
What happens if I stop paying the premium?
If you stop paying the premium during the policy term, then all benefits of your policy will cease, and the policy will lapse. However, if you have paid at least three premiums, you are eligible to receive a paid-up value.
What is the surrender benefit of this plan?
The surrender benefits are available after three policy years. The minimum guaranteed surrender value = 50% of the total premiums paid – 1st year’s premium.
Additionally, the surrender benefit varies with respect to before and after the due date of the first survival benefit.
Is it possible to get a loan against HDFC money back policy?
No. Loan facility is not available under this plan.
