Hello Friends,

Wanted various inputs from CD's regarding money back policies and try and understand the finer points.

Eg ( The nos are just made up for example to explain the point)

Life Insurance for non smoker for $ 250 K is $ 25 per month ( say 30 year term)

Same Life insurance ( all terms same ) PLUS money back option is $ 95 per month. You get approx $ 40 K at end of term ( THE MONEY BACK)

Effectively you are getting your own money back after locking it in for more than 30 years ( at differential you are contributing $ 25,200).

Even if you invest $ 70 per month in GIC for 30 years , your return wold be more than $ 40 K after 30 years. Here the benefit is liquidity, plus chance to earn a higher return.

A lot of advertisments, radio talk shows talk of money back options which I think are really misleading when one can simply invest in GIC and get better returns.

Really my opinion. CD inputs and insurance professionals can clarify. Is money back option really an advantage in Canda.

No, it is not.
There are hardly any valid scenarios where it makes sense to go for such policies.
The _only_ benefit you have is tax protection of that "return".
So for someone who is very rich and is looking to protect some income from taxes, even at the expense of lower returns, they can do this.

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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

-- Rhett Butler in "Gone with the Wind"