Money back policy refers to that insurance policy under which the insured gets periodic payments from the insurance company, which is not the case with other policies where the insured gets money only after stipulated time or on death of the person and not regularly. One benefit of this policy is that if the insured dies than he or she would get full amount of the insurance amount which he or she has taken and the periodic payment which he or she has received as survival benefit until now won’t be deducted.
It can be better understood with the help of an example, suppose if a person has taken a policy of $10000 of 20 years and policy states that after every 4 years he or she would receive $2000 and after 10 years the person dies than insurance company will pay full amount $10000 and wont deduct the $4000 which it has paid to the insured so far.