Standard Terms and Conditions for a Money-Back Plan
Published On Aug 11, 2021 10:00 AM By InsuranceDekho
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Money-back plans are not only life insurance plans but also saving instruments due to the benefits that they offer. The common benefits all the money-back plans offer are tax benefits, survival benefits, maturity benefits, death benefits, life cover, and additional riders. Saving money for your future means saving it for unforeseen, unexpected expenses that might pop up in your life as well as pre-planned expenditures like retirement or any major event in your life. People with short-term plans and those that invest in the stock market often invest in this plan to save for their pre-planned goals and to save at least a part of their income.
For every plan you intend to invest in, there must be done considering all the important aspects that are involved. It is advised to compare different plans and their terms and conditions before buying a plan to invest in. YOu must consider different aspects of your life too before you consider investing in a plan. You must make sure you understand your requirement and your current financial position and flexibility and ensure that you are not risking by stretching more than what you can invest. You must consider your payment window and carefully pick the right policy to invest in.
Standard Terms And Conditions of Money-Back Plans
For every plan you pick to invest in, there will be some terms and conditions. Some standard terms and conditions to invest in money-back plans are -
Survival BenefitThe payment at the end of the term of the amount of the sum assured along with the applicable bonuses that are received by the life assured for surviving the entire duration of the policy term is called the survival benefit.
Maturity BenefitIf all the premiums are paid correctly until the maturity age of the policy, the life assured is paid a part of the sum assured along with applicable bonuses. This aspect makes the life insurance policy a saving instrument also.
Death BenefitIn the case of the life assured’s unforeseen unfortunate death, the insurer pays the nominee of the policy the entire sum assured along with the applicable bonuses to cover the immediate expenditure of the family so that the family does not have to live indebted to someone. This way, you can make sure that even after your unfortunate or accidental death, your family does not have to suffer financial scarcity.
Tax BenefitsUnder section 80C of the Income Tax Act, 1961, tax deductions apply to money-back plans. This means that the amount received through money-back policies is not taxable.
Additional RidersIf you want to cover some aspect of your life that is not already covered from the beginning under the money-back policy, you can avail of add-ons that come along with the plans to cover those aspects.
The money-back plans are not only traditional life insurance plans but also saving instruments due to the maturity benefit that they offer. The standard terms and conditions offered by a money-back plan include survival benefit, tax benefits, death benefit, maturity benefit, and additional riders with extended life cover.
Must Read: How can Money-Back Plans Help You Achieve Your Financial Goals?
Need a Good Saving Plan? Buy 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.