SBI Money Back Policy: Check Its Features & Benefits

SBI Money Back policy is a savings plan that guarantees return of the invested amount. In addition, it offers life insurance and ongoing income to support you financially during key life phases. You can plan for each of life's events, like your marriage, the birth of your children, their education, and many other events, with the aid of this insurance. The plan's several features simultaneously safeguard your family and meet your financial needs.

What is SBI Money Back Plan?

As long as the life assured is still alive, a money back policy distributes the amount assured as "survival benefits" over the course of the policy's term. The survival benefit starts to be paid a few years after the money back insurance started, and it lasts until maturation if the insured person is still alive. If the policyholder passes away before the plan matures, the nominee(s) get the maturation amount, the full amount insured, as well as any collected bonuses.

Features of Money Back Plan

SBI Money Back Policy is a savings and protection plan with a number of helpful features. They were specially designed to accommodate different life stages. These are discussed in more detail below.

1.     Funds

The plan provides consistent cash inflows to satisfy financial obligations.

2.     Submission Amount

The plan will only provide a compensated and/or surrender amount in circumstances where premiums have indeed been received for at least two years in a row.

3.     Discount

The approach provides incentives for selecting a sizable sum promised. 

4.     Tax Benefit

You are entitled to tax benefits under the Income Tax Act, although this law is subject to rewrites from time to time.

5.     Convenience

You can choose between a single, regular, and constrained premium payment period.

Benefits of Money Back Plan

The SBI Money Back Policy has a variety of advantages. The advantages are all given up front.

1.     Funeral Advantage

Your nominee will receive the death advantage under the SBI money back scheme. If the life assured dies within the duration of the policy, the higher of 105percentage points of all insurance premiums or the adequate amounts on mortality, along with vested simple reversionary incentives including terminal bonus, is payable.

2.     Maturity Benefit

If the life insured lives until the policy's maturity, the very last survival benefit instalment, invested simple leasehold bonus, and terminal bonus are all payable.

3.     Survival Benefit

You are eligible to receive survivor benefits at predetermined times throughout the policy's tenure. The final survivor benefit and any accrued simple reversionary bonuses will be paid out at maturity.

4.     Incentives

For the simple leasehold bonus, a percentage of the starting cash insured is specified. The announcement of reversionary bonuses takes a long-term view of the expenses, returns, and other experiences of investments. Once announced, it qualifies as a guaranteed prize under the plan. Future bonuses are not promised and are based on future earnings. Interim incentives are announced for policies that expire within the fiscal year. A terminal bonus is given upon maturity, submission, or fatality, whichever comes first.

Endnote

Overall, SBI's money back plan has a number of features and perks that set it apart from other options on the market. It can meet your demands and direct you toward a wise financial decision.

Also read: Compare Money Back Insurance Plans Available in India Online

Learn About the Tax Benefits Under Money Back Insurance Policy