Money Back Policy
Money back plans are a type of life insurance plan which helps an individual complete their financial goals or their financial requirements at different stages of life. Money back plan is a quite unique life insurance policy which provides life cover and periodical payouts. Under a money back plan a death benefit shall be provided in case of an unforeseen demise of the life assured. A money back also provides payouts at regular intervals during the policy term known as ‘survival benefits’ which is equivalent to a percentage of the sum assured.
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What is Money Back Insurance Plan?
A money back insurance plan is a life insurance policy type. Money back plans provide the insured person with a specific percentage of sum assured at regular intervals rather than giving a lump sum amount at the end of the term. An ideal choice for people who don’t want to take risk, a money back insurance plan helps one build savings as well as maintain liquidity throughout.
It is important to note that a money back insurance plan pays out the maturity benefits in the form of several guaranteed “survival benefits". These survival benefits are arranged evenly throughout the policy course.
How Does The Money Back Policy Work?
In addition to Maturity Benefits, a Money Back policy provides policyholders with Survival Benefits as well as investment options.
A normal money return policy with a 20-year term would therefore pay the insured a 'Survival Benefit' a few years after the policy began. Around 20% of the Sum Assured would be paid out on a regular basis, with the remainder paid out at policy maturity, together with any bonuses.
If the insured person does not live to the maturity date of the policy, the nominee will receive the Death Benefit (the total Sum Assured) and the policy will be canceled.
Features Of Money Back Policy
As listed below, the money return policy offers a number of unique features that set it apart from other life insurance products:
- Money back plans offer low-risk investing opportunities as well as insurance coverage to policyholders.
- For the duration of the policy, the plans give a steady flow of income in the form of 'Survival Benefits.'
- The entire Sum Assured is paid out to the nominee if the policyholder dies during the policy term, regardless of the amount already paid out under the Survival Benefits.
Benefits Of Money Back Insurance
Prime benefits of money back insurance include:
- Provides Insurance: Money back policies are superior insurance instruments. Based on their specific requirements, customers can choose an ideal cover so that the financial requirements of their loved ones can be met without any concern.
- Provides Sum Assured: Money back policies offer sum assured as a lump sum amount to the nominee in case of death of the policyholder. The sum can be used to cover the expenses of the nominee, allowing them to live a peaceful life free of financial worries. It is worth noting that if the insured lives to the end of the policy term, they will receive survival payments at policy maturity.The insured can use the sum assured amount received (survival benefit) to fulfill their financial goals like dream house, child’s education, retirement, and more.
- Comes with Low-Profile Risk: Guaranteed returns are provided through money back plans at regular periods. Money back plans, unlike other investment products such as bonds, shares, mutual funds, and others, are untouched by market movements.Money back plan is an ideal choice for you if you are not the type to invest in a high-risk instrument.
- Provides Returns Within a Few Years of Investing: Money back plans act as a regular source of income. Unlike a traditional life insurance plan, they offer a regular stream of money at regular intervals.
- Provides Additional Bonuses: Every year, a bonus is added to the money-back policy. It is worth noting that this incentive is only paid out when the account reaches maturity.One of the best things about this bonus is that they help one in fulfilling their financial goals.
- Provides Tax Benefits: Money back plans offer tax benefits as per Section 80C of the Income Act of 1961. The sum assured is also tax free under Section 10(10D) of the Income Tax Act of 1961.
Why Choose InsuranceDekho?
Need reasons to choose us? Here are some:
- Quick Policy Issuance: If you want your money back policy to be quickly issued, InsuranceDekho would be the best place. The process is simple and would require you to provide your personal details, compare the options, buy the best plan, and make the payment after submitting necessary documents.
- Availability of Top Plans: InsuranceDekho in partnership with the best life insurance companies in India will provide you with a diverse range of money back policies to choose from.
- Dedicated Customer Service: InsuranceDekho has a customer assistance team available 24x7 for the customers so that they get the best possible solution to all their money back policy concerns.
How To Buy Money Back Plans With InsuranceDekho?
.Follow these steps to buy money back plans with InsuranceDekho:
- Submit Details: Provide your name, gender, date of birth and mobile number. Click on the ‘View Instant Quotes’ button to find the available quotes.
- Comparison of Quotes: You will get different insurance quotes on the basis of details you provide. Compare the available plans based on the quotes.
- Make The Payment: After you have chosen the ideal plan, adjust the sum assured as well as the policy term. Go ahead with the premium payment once everything is finalized. Use modes like netbanking or debit/credit card.
- Submit Necessary Documents: Submit photo ID proof, address proof, age proof, and a passport size photograph in addition to required medical documents.
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FAQ About Money Back Policy
What is the meaning of money back policy?
In simple words, a money back policy means a life insurance policy type that provides payments at regular intervals to the policyholder.
Does a money back policy provide survival benefit?
Yes! Money back policies provide the sum assured at regular intervals in the form of survival benefits as long as the policyholder survives.
What is the maturity amount of a money back policy?
The maturity amount of a money back policy is 40% of the basic sum assured along with reversionary bonuses as well as the additional bonus amount.
Does a money back policy provide full sum assured on maturity to the policyholder?
Yes! Under a money back policy, the policyholder gets full sum assured on maturity, regardless of the survival benefits and amount paid for the same.
Will the premium paid for money back policy help in availing tax benefits?
Yes! The policy premium paid towards a money back policy comes with tax benefits under Section 80C of the Income Tax Act.
What are some of the key benefits that one can receive through their money back policy?
One of the prime benefits a money back policy provides include death benefit, maturity benefit and survival benefit. Keep in mind that this is in addition to the bonus that is paid along with the sum assured.
Can I buy riders under my money back policy?
Yes! You can easily buy riders under your money back policy.
I am not a high-risk investor. Is the money back policy good for me?
If you are not a high-risk investor, a money back policy is an ideal choice for you.
I have a money back policy. What will happen to the sum assured in case of my death during the policy term?
In the event of your unfortunate death, your money back policy will provide the entire sum assured amount to your nominee.
Which money back policy will be the best for me?
To find out the best money back policy for yourself, make sure you consider your financial goals, funds you want to invest at present, your payout expectations, and your investment time.