Everything You Need To Know About Money Back Plans Offered By HDFC Life Insurance
Published On Nov 11, 2021
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The HDFC Life Money Back Plan allows you to receive monthly cash back at regular intervals and provides financial security to your loved ones while you are away. The Money Back Product from HDFC Life is a participating insurance plan. It's a standard insurance plan with a bonus feature. The premium for this money-back plan must be paid until the conclusion of the insurance term, and the survival benefit is paid every four years. The remaining balance, as well as any accumulated bonus, is due upon maturity. If the policyholder dies during the policy term, the whole sum guaranteed, plus an accrued bonus, is payable as a death benefit, regardless of the amount paid during the policy term.
HDFC Money Back Insurance Plan Features
The key features are:
- The HDFC Money Back insurance plan is a pure money-back policy that offers death, maturity, and survival rewards.
- Terminal and Reversionary Bonuses are included in the scheme.
- At the conclusion of every four policy years, the policyholder is entitled for a portion of the sum assured as a survivor benefit.
- At the end of the policy term, the balance sum guaranteed, plus the bonus, is paid out as a maturity benefit.
- If the policyholder dies during the policy period, the sum insured with bonus is paid as a death benefit.
- On a sum insured of Rs. 5,00,000 or above, the plan gives a 5% high-sum assured discount.
HDFC Life Money Back Plan Advantages
The HDFC Life Money Back Plan offers various different sorts of rewards. The following are the details:
1. Survival Advantages
Every four years, the HDFC Life Money Back Plan pays out survivor benefits. It's computed as a percentage of the plan's base amount assured. The total number of payouts is determined by the length of the insurance.
2. Death Insurance
A death benefit is given to the policyholder's nominee if the policyholder dies within the policy term (s). This death benefit is equal to the whole sum guaranteed plus any collected incentives. Regardless of what has been paid out in survival benefits, the death benefit is paid in full.
3. The Advantages of Maturity
If the policyholder lives to the end of the policy term, the money left over after the survival benefits is paid out as a maturity benefit. Bonuses of any kind accumulated by the policyholder are also paid out.
4. Tax Advantages
Tax incentives are available under Sections 80C and 10D of the Income Tax Act of India for the HDFC Life Money Back Plan. Premiums of up to 1 lakh INR are eligible for tax advantages under Section 80C. Under section 10D, the maturity benefit is completely tax-free.
The HDFC Life Money Back Plan is a good option for anyone searching for life insurance and good savings options. The HDFC Life Money Back Plan allows you to receive monthly cash back at regular intervals and provides financial security to your loved ones while you are away. It ensures that the policyholders' profits are put to good use with the different advantages it offers. Start saving now to live a stress-free life in the future and to be prepared for any financial emergencies!
You may also like to read - How Is Money Back Policy More Beneficial Than Other Types Of Life Insurance Policy?
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.