Documents Required for Money-Back Policy
Updated On Apr 17, 2022
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A money back plan is a traditional insurance policy that offers the full sum assured on maturity in the form of several guaranteed survival benefits over the period of the policy. A money-back policy gives you money back at regular intervals. When you invest in a money-back policy, you will receive money during the policy tenure as a percentage of the sum assured. The payout you receive is called "Survival Benefits."
Features Of Money Back Plans
Some of the salient features of Money Back Policy are:
- The Survival Benefits are calculated as a percentage of the sum assured.
- Survival Benefits are paid at regular intervals during the plan tenure. There is a fixed interval when the benefits would be paid. Every plan has a different payout structure. Similarly, the percentage of Sum Assured paid as Survival Benefits is also not fixed and varies between different plans.
- If the plan matures, the remaining portion of the Sum Assured (actual Sum Assured less the Survival Benefits already paid) is paid as maturity benefit. However, in case of death, the entire Sum Assured is paid irrespective of the money-back benefits already paid.
- Money-back plans usually come as participating plans where bonuses are added. The accrued bonus is then paid on maturity or on death.
- Riders are also available under many money-back plans. Rider benefits are paid as a lump sum only when the contingency covered by the rider occurs during the plan tenure.
The eligibility criteria to buy a money back plan is:
One must meet the entry age criteria as mentioned in the policy wordings before purchase. One can’t extend the policy beyond the maximum age allowed under the money back plan. One must adhere to the plan’s premium payment term and mode.
Documents Required For Buying Money Back Policy
Mentioned below are the documents required for buying a money back plan:
- Income proof - Salary slips, income tax returns, bank statements, etc.
- Address proof - Driving License, Aadhaar card, voter’s id, passport, etc.
- Id proof- PAN card, Aadhaar card, voter’s id, etc.
- Age proof- Aadhaar card, voter’s id, passport, driving license, etc.
If you want the safety of capital, money-back policies are a perfect investment option for you. Money-back policies are safe, long-term investment plans that invest money in government bonds and top-rated corporate debt.