Money Back Insurance Policy Basics
Published On Nov 15, 2021 10:00 AM By InsuranceDekho
Table of Contents
The policyholder can put money aside and invest it to achieve short-term goals like college expenditures, household expenses like phone and electricity bills, and so on. Money-Back Plans provide guaranteed returns at regular intervals during the policy term, as opposed to other insurance plans that pay a single sum at maturity or in the worst-case scenario of death. For individuals looking for a low-risk investment instrument, Money Back Policy is one of the best possibilities. The policyholder can put money aside and invest it to achieve short-term goals like college expenditures, household expenses like phone and electricity bills, and so on.
Money-Back Guarantee Features
In this article, we'll go over some of the key aspects of the Money Back Policy that set it apart from other insurance options. -
1. Modes of Premium Payment
Money Back Plan is available in a variety of premium payment options. Premium payments for issued plans can be made on a monthly basis, for a short time, or all at once.
2. Benefits Upon Death
In the event that the insured individual passes away, the policy's nominee receives the death benefits. The lump sum amount as the sum assured of the Money Back Policy, as well as any applicable bonus on the policy, are included in the Death Benefits. However, survival benefits are not included in this benefit because they are given to the insured when they are healthy and alive.
3. The Advantage of Maturity
When the Money Back Policy reaches maturity, the policyholder receives this benefit. The components of Maturity Benefits are as follows:
- Sum Guaranteed: This is the total amount that the policyholder chooses at the start of the policy.
- The Bonus: This includes any reversionary incentives that the insurer has announced. However, it is mostly dependent on the company's profitability and the Policyholder's obedient behaviour over the full duration.
4. Benefits of Survival
The term "survival benefits" refers to the recurring rewards provided under Money Back Plans at regular intervals during the policy term. These benefits are only paid out if the insured lives to the end of the pay-out period.
5. Additional Bonus
Money return plans with additional bonuses are frequently offered as part of a participating plan. Under money back programmes, there are two types of bonuses: simple and compound reversionary bonuses. The health bonus is given on either maturity or death, improving the plan's benefits.
Riders are optional coverage elements such as Accidental Death and Disability Rider. Money-Back Plans are available to riders who pay additional premiums. These riders are an extra cost that broadens the area of coverage.
7. Benefits from Taxes
Tax advantages are available to policyholders, as well as other incentives like as a rider, a lending facility, and so on. Premiums paid under Money Back Plans during the policy term, like those paid under other life insurance plans, are deductible under Sections 80C and 10 of the Internal Revenue Code (10D) Insurers have tax-free money in their pockets.
Money Back Policy is a good investment choice for those looking for a high-return long-term investment. It's especially handy for people who want a low-risk investment with guaranteed payouts at regular intervals during the policy's term. Money Back Policy is a type of investment that allows you to grow your money. Money Return Policy offers customisable money-back options that are tailored to the policyholder's needs.
Also read - Tips To Purchase A Money Back 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.