Lesser Known Facts About Money Back Policy
Updated On Sep 10, 2021
Table of Contents
Money-back plans are a useful financial planning tool since they provide a monthly dividend at regular periods. Furthermore, these policies include insurance coverage, tax advantages, and incentives, making the plans a safe and secure investment option. These types of insurance plans are suitable for cautious investors who desire lower but assured returns on their investments. To select the finest life insurance policy, it is important to utilize an online money-back plans comparison tool.
Facts You May Not Know About Term Insurance
The following are some hidden truths regarding term plans that you should be aware of before purchasing a money-back policy.
Provides Coverage Up To The Age Of 85 YearsMost of you are probably aware of the benefits and characteristics of term insurance, but it is a little-known truth that you may acquire a term insurance policy not only at a young age, i.e., in your 20s but even in your late 50s, and benefit up to the age of 85. It should be emphasized that term insurance would be relatively costly in such circumstances, but it will still cover the possible danger. People nowadays work even beyond retirement, frequently in their late 60s. Today's money-back policies on the market provide coverage up to the age of 85. The older you are, the better it is for your family's protection and security.
Money-Back Plan is A Real ThingMoney return plans are investment-linked plans, and term insurance is the only basic pure protection plan that adequately covers your life and gives financial security to your family in the event of the sad death of the family's sole earning member. As a result, if you are looking to purchase money-back plans for a genuine reason, i.e., for the safety and social security of your family, a term insurance plan is an appropriate insurance product to purchase.
Claim Rejection Could Be Caused by False DisclosureWhen acquiring a Money Back plan, do not conceal any facts about your lifestyle or any pre-existing diseases/illnesses. People prefer to conceal important facts to avoid paying higher term insurance rates. Most people do not reveal their smoking and tobacco use to avoid paying higher premiums. Premiums generally rise by 20-50 percent for people who smoke or consume tobacco in any form regularly or who have previously been diagnosed with a critical/chronic disease. When it comes to resolving term insurance claims, the insurance company will conduct a thorough investigation and review of all insurance-related documents and medical history. If any fact is discovered to be inaccurate or false, the term insurance claims will be rejected.
The Sum Assured Is Limited To 20 Times The IncomeIt is important to comprehend an appropriate sum insured for your loved ones to pay monthly expenditures in the event of the untimely death of the family's earning member. The optimal sum assured will be determined by the policyholder's annual income and monthly expenses. When calculating a sum promised, remember to account for inflation. It should preferably be fifteen to twenty times the annual income. Based on this, insurance firms have set the maximum sum insured at 20 times the policyholder's yearly income.
You will never want to jeopardize the family's financial stability or see them face financial difficulty or struggle. Having money back these days is a requirement that safeguards the family's future in the event of the policyholder's untimely death. As a result, make a wise selection and get the best term insurance plan in India. The term insurance plan's corpus is not directly tied to the market, and you will be informed of the sum guaranteed amount when you purchase the money back plan online.
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.