Key Features of a Money Back Insurance Plan

The introduction of money back plans in the Insurance market has come as a ray of hope to the people who are looking forward to securing their future, however, want to be prepared for any sudden financial crisis. As the name suggests the money back plans not only offer a sum assured at the maturity of the policy but as well as it provides a percentage of the sum assured amount at fixed intervals during the tenure of the plan. As life is full of uncertainties a financial crisis can arise at any point in time may it be a medical emergency or any other urgent need of funds to meet the needs. We have listed out the key features of money back plans to give you an insight.

Key Features of a Money Back Insurance Plan

Following are the key features and benefits of a money back plan - 

• Survival Benefits

  When everything is going smoothly it feels like there is nothing that could go wrong, however, when suddenly it all starts to fall like a domino and you are in urgent need of funds then it becomes difficult to find the sources. If you have a money back plan then it assures you an extra source of income so that you can meet the requirements and plan your future goals accordingly.

• Better Liquidity

  The traditional term endowment plans also provide liquidity but after a long period. It does guarantee you a sum assured that you can utilize in the future accordingly. Planning for the future is a necessity, however sometimes while planning for the long-term we forget about the scenarios that might arrive in our day-to-day life. In such cases, the money back plans provide liquidity in the form of survival benefits at fixed intervals, so whenever you need funds you will be prepared.

• Less Risk and Guaranteed Returns

  If you are not one of the risk-taking types and want to follow a safe and secured path then a money back plan is the ideal choice for you. As it does not have any risk involved rather it gives you a secondary source of income with coverage. These plans provide you guaranteed returns in the form of survival benefits every few years and the remaining amount is paid in the form of a sum assured at the maturity of the policy. Even in case of death, the sum assured and the accrued bonuses are received by the nominee.

• Maturity and Death Benefits

  As mentioned above, the survival benefits are a form of secondary source of income that you receive which can be saved and utilized later, but this plan does not exclude other benefits such as maturity and death benefits. The survival benefits are a percentage of the sum assured that you receive, which means the remaining amount is not lost rather it is paid at the maturity of the policy which is paid to the insured with other bonuses as mentioned in the policy documents. In addition to the maturity benefit facility, the death benefit is also a major aspect of this plan. In case of the sudden demise of the insured the sum assured is provided to the nominee of the insured person. Just like any other policy plan, suicidal death is not covered.

• Add-on Riders

  To increase the cover the money back plans offer add-on riders. Just like any other policy like personal accident, critical illness, or a term rider can be added to enhance the coverage. The money back plans offer multiple riders that can be added to the existing plan.

Conclusion

You can see that money back plans can play a major part in your life once chosen. Providing you a backbone in times of dire need in the form of immediate funds or savings. Experts in the market suggest that while choosing a money back plan you have to keep in mind your payout capacity, the risk involved, additional tax benefits, and assured returns. 

Must Read: Steps To Buy Money Back Insurance Plans Online

Money Back Policy Is The Ideal 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.