Frequently Asked Questions About Money Back Policy
Published On Jul 20, 2021 6:30 PM By InsuranceDekho
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When it comes to buying life insurance, most people find themselves stuck at the policy type to buy. However, if you have made up your mind to buy a money-back policy, know that it would be important for you to have a good understanding of its basics in the first place. Those who are exploring their money back policy options, know that it is a life insurance policy type that returns a specific percentage of the total sum assured on a regular basis. One of the key things to note is that the amount one gets under a money-back policy is fixed. Most people choose a money-back plan to gain insurance as well as investment. So, if you have the same plans, you can also go ahead with a money-back policy.
Frequently Asked Questions About Money Back Policies
Here is a list of some of the frequently asked questions about money back policies that you can benefit from:
1. What are the benefits associated with a money back policy?
The key benefits associated with a money back policy include survival benefits, death benefits and maturity benefits. Survival benefit is the regular income which is paid at fixed intervals during the tenure of the policy if the policyholder survives till the end of the policy and the policy is active. Death benefit is the benefit (maturity benefit along with accrued bonuses) that is given to the nominee of the policy holder, in case of sudden demise of the latter. Maturity benefit is the benefit that is paid out once the policy matures.
2. What is the eligibility criteria for buying a money back plan?
The eligibility criteria are as follows:
- The policyholder should be above the minimum entry age and below the maximum entry age. It must be noted that the minimum and maximum entry age varies from policy to policy.
- The policyholder should be able to pay the sum assured amount as per the policy guidelines.
3. Will the amount I receive through the money back policy be taxable?
The amount a policyholder receives will be tax-free as per section 10(10D) of the Income-Tax Act 1961.
4. Can a money back policy be revived?
Yes, a money back policy can be revived within 2 years from the date when the last premium was paid.
5. Can a money back policy be transferred?
No! A money back policy cannot be transferred. However, it can be surrendered.
Are you now ready to buy a money back plan that provides you the dual benefit of investment and insurance? If so, make sure you keep your financial requirements & goals, risk appetite, and the period for which you want to stay invested in mind before buying a money back plan. Rest assured, buying a money back plan after careful consideration would benefit you in more ways than one.
Who Should Buy A Money Back Policy?
Benefits of Money Back Insurance Plans
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.