Eligibility Requirements To Purchase A Money Back Plan

Money Back Life Insurance Plans are life coverage plans that are unique in concept and highly popular among prospective buyers interested in availing of the benefits of protection alongside savings. The term attached to such kinds of plans implies that the cash-back life insurance will ensure that part of the premium is regularly returned to the insurer, thereby offering the latter a steady income source over the period the policy is effective. This post will go on an excursion on the essentials you require to meet money-back life insurance policies in Canada. Read on to find out how to gain a plan that will suit your needs. 

What Is a Money Back Life Insurance Plan? 

Money Back Life Insurance Plans, also known as Money Back Insurance Policy or Cash Back Insurance Policies, is an insurance policy that not only provides financial protection against the uncertainties in one’s life but also secures the provision of a certain percentage of the sum assured at regular intervals. Unlike traditional kinds of life insurance policies, in which one claims the benefits either on the policy’s maturation or on the death of the policyholder, the benefits derived from Money Back Life Insurance Policies are periodic payments, which may turn out to be a source of income during the term of the policy. 

Key Features of Money Back Insurance Policies 

  • Periodic Payouts:  These plans generally tend to return a percentage of the sum insured from time to time. This can stabilize the usually-instable cash outflow rightly and help manage appropriate short-term financial goals. 
  • Lump-Sum Payment: Besides the periodic payments, a money-back life insurance policy typically includes a top-up, a lump sum payment that the insurance firm pays upon maturity of the policy, so the money you get back will be sizable and more of a buffer for the latter years of your life. Death Benefit: Though periodical payments are made in the plan, that does not compromise the death benefit extended. In case of the death of the policyholder, the beneficiary receives the full sum assured, nothing less than it, irrespective of the payouts already made. 
  • Tax Benefits: Money Back Insurance Plans offer the same kind of tax benefits as other life insurance products under the laws prevailing at the time, which increases the appeal of these policies.

Eligibility Requirements for Purchasing Money Back Life Insurance in Canada

Knowing the eligibility criteria for the Money Back Life Insurance Plans will help you to decide if this tool of policy will meet your needs. Here is what you need to keep in mind:

  • Age Limitations: Normally, this Money Back Life Insurance Plan will have an entry age of 18 years and can be as high as 55 or 60 years, according to the insurer. The maturity age of these policies can go up to 70 or 75 years.
  • Medical Underwriting: Money Back Life Insurance Policies, like most life insurances, require an applicant to undertake medical underwriting. The underwriting process may be through a health questionnaire and may also include a medical examination, depending on the sum assured and the age of the applicant. Normally, a health questionnaire is what will be used.
  • Financial Background: Proof of financial stability is often required by an insurer when a person is applying for a Money Back Life Insurance Plan. That would ensure that the policyholder maintains premium payments throughout the term of the policy. Normally, to be eligible for Money Back Life Insurance in Canada, you should be a resident or citizen of Canada. This would mean the policy is under Canadian insurance law jurisdiction.
  • Purpose of Insurance: Some insurers like to know the purpose of purchasing insurance so as to keep checks on the same to ensure that it is in line with product purpose—for instance, long-term financial planning, income during retirement, or funding to meet future needs such as education.

Factors to Consider Before Buying Money Back Life Insurance Policies

Before considering quotes of Money Back Life Insurance, evaluate below several factors that would ensure the policy fits in the long-term financial strategy:

  • Premium Payments: Understand the term of the premium payment, as it might be much shorter than the term of the policy, and ensure it is per your financial planning. Evaluate the returns—how often and how much comes back within a policy term—which will help the person plan their finances around the return of the money.
  • Shopping: Get many quotes for Money Back Life Insurance from a variety of insurers to compare features and costs. In so doing, the person will be in line to get the cover at the best rate and under the most favorable terms.
  • Read the Fine Print: Make sure to read the terms and conditions properly, including the implications of policy lapses and the process for claiming the policy and its benefits.


Money Back Life Insurance Policies have gradually become quite popular as the ideal mix of security and savings amongst most Canadians. Being aware of the qualifying requirements of the scheme and proper selection of the policy will make sure that you can derive the dual benefits of safeguarding and receiving periodical returns. Having met the eligibility criteria and obtaining a policy in line with your financial objectives, surely, you can effectively work on Money Back Life Insurance Plans to increase your financial safety, which will aid in the sustenance of your lifestyle expenses.

Find Out: How much does Whole Life Insurance cost a month?

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