Money Back Policy
Money back policy is a mix of investment and insurance protection. Hence, it turns out to be an ideal choice with a double benefit package.
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What is a Money back plan?
The money back insurance plan concept is similar to regular insurance plans except for the cash flow system. In a regular insurance policy setup, the policy nominee will receive a lump sum as a death benefit after the death of the policyholder. In the money-back insurance plans, payouts are issued at regular time intervals throughout the policy timeframe. The regular cash flow system is a highlight feature in the policy plan.
Why should one opt for a money back life insurance policy?
The money-back insurance policy acts as a steady source of income during the plan period. The returns would assist your short-term financial goals. The money-back plan is a mix of investment and insurance protection. Hence, it turns out to be an ideal choice with a double benefit package.
The plan gives the policyholder regular steady benefits rather than a hefty settlement at the end. The policyholder will enjoy maturity benefits along with survival benefits during the policy period. Individuals opting for a money-back insurance policy get the opportunity to save and build their wealth.
Benefits of Money Back policy
The benefits of money-back insurance plan are,
- Regular money returns
- Tax benefits
- Uniform cash return periods
- Provides a long term investment option along with insurance coverage
- Add-on benefits applicable
- Less risk when compared to other similar investment options like mutual funds
- A long time savings option
- Certain plans provide coverage even after the maturity period usually till the policyholder reaches 100 years of age
Eligibility criteria for money back policy
Eligibility criteria to buy money back policy,
- Each policy will have its own minimum and Maximum age restrictions
- The individual must be eligible enough to pay the required premium for the plan
Features of Money back insurance policy
Suppose the policyholder passes away during the policy tenure. In that case, the firm will provide the nominee of the policy with the death benefit settlement regardless of the money settled already in the form of survival benefits.
It is a double benefit option that combines life insurance coverage and investment equation for the individual. The policyholder will enjoy regular returns in the form of survival benefits; thus, the amount can be used to tackle the hour’s needs.
How does a money back insurance policy work?
As mentioned earlier, the policy would provide regular returns in a regular period of time during the policy period in the form of Survival benefits. For example, considering money back policy with a 20-year tenure, the policy provider will enjoy survival benefits for certain years called survival benefit from the start of the policy. 20% of the entire sum will be paid periodically to the individual, whereas the balance will be paid after the maturity period along with other bonus benefits. When the individual doesn’t survive during the term, the nominee will receive the death benefit, and simultaneously the policy will forcefully be stopped.
Money back policy Rider
Various pension plans depend on the investment and the authority that manages them. Following is the list of pension plans available in India:
Documents required to buy
- Age proof
- Address proof
- Medical certificate (if any)
