Eligibility Requirements To Purchase A Money Back Plan
Updated On Oct 03, 2021
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Money-back plans are an ideal choice for a person who wants to invest money to save for the future while also receiving financial assistance to fulfill your short-term or pre-planned financial goals. Money back plans provide a variety of advantages and provide dual benefits of life insurance and savings. Money back plan provides a death benefit in case of an unforeseen demise of the life assured during the policy term. Money back plans also provide survival benefits at regular intervals during the policy tenure. The survival benefits are equal to a pre-fixed percentage of the sum assured which are provided at fixed intervals during the policy tenure.
Before purchasing a money back plan you must know about the eligibility criteria of the plan. We have briefly discussed the eligibility requirements to purchase a money back plan.
Eligibility Criteria to Purchase a Money Back Plan
Below mentioned are some key eligibility parameters to be considered before purchasing a money back policy:
- Entry Age: Entry age is the first most parameter which is evaluated in determining eligibility. It is essential for the buyer to be a resident of India. Usually insurance providers declare that a person should have a regular source of income to purchase a money back policy, the applicant can be an employee/self-employed. A person who is between the age of 18 years to 60 years can purchase a money back policy. For a person who is self-employed, the maximum entry age is 65 years.
- Policy Term: Policy term plays a major role in determining eligibility, policy term is the coverage period or the time period under which you are provided the life cover. Generally, money back plans have a policy tenure of 5,10 or 15 years. It is upto the policyholder to choose the policy tenure according to their budget.
- Premium Payment Mode: Premium payment mode are the frequencies in which you shall be making the premium payments. Just as a coverage period there is a premium payment period. Under a money back plan you choose the premium payment term and the premium payment mode. You can choose to make premium payment on a Yearly, Half yearly, Quarterly or Monthly basis.
- Income: Another important factor considered while determining eligibility for a money back plan is the income of the applicant. The policyholder should be able to make regular premium payments during the premium payment term. If the applicant is self-employed his/her income tax returns should be Rs. 6 Lakh and if the applicant is employed his/her monthly income should be Rs. 25,000 making them able to make regular premiums payments.
The most important benefit of purchasing a money-back plan is that this plan provides periodical payouts for a certain period of time along with life cover. Before purchasing a money-back policy you must look into the eligibility criteria.
You may also like to read - Things That Make Money Back Plan The Best Investment Option
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.