Understanding Exide Life My Money Back Plans
Updated On Jul 05, 2022
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When one thinks of life insurance plans, it is only perceived as a cover that covers the insured for a certain period of time, and if the insured passes away, then the nominee gets the sum assured and the plan is closed. This is primarily what life insurance does, but nowadays the life insurance industry has evolved and there are many product offerings that bring much more to the table. The customer has also become more demanding with time and seeks to get the most value out of his investments. Life insurance basically is a protection plan that ensures that the insured’s dependents are not left to fend for themselves after the insured’s passing.
Benefits Of My Money Back Plan
The My Money Back Plan offers all the above benefits and more. Here we tell you more about them.
Guaranteed Pay-outs
The My Money Back Plan, besides offering life insurance coverage, also provides the insured with guaranteed pay-outs also known as Survival Benefit. As long as the insured keeps on paying the required premium and survives to these pre-defined periods, then he will get a fixed percentage of the basic sum assured.
There are two ways in which these pay-outs are made, and they are explained below.
- Uniform Money Back: Under this payment mode, an equal amount which is a uniform percentage of the basic sum assured is dispersed at predefined intervals, specified at the start of the policy. Let us assume that a 30 year old someone has purchased the Exide Life My Money Back plan with a policy term of 20 years and a basic sum assured of ₹ 5,89,776. He is required to pay an annual premium of ₹50,000 for 16 years.
In this case, his pay-outs will be split into four equal parts (i.e. 25% of ₹5,89,776) of ₹1,47,444 that will be distributed in the 5th, 10th, 15th and 20th year of the policy.
- Increasing Money Back: This is similar to the first option with the notable exception of uniform pay-outs. The amount distributed is paid in an increasing percentage of basic sum assured. So these four instalments will be in the following percentage of the sum assured: 10%, 20%, 30% and 40%.
This time, we will assume that he has insured himself with a basic sum assured of ₹6,55,807, with all other information and the premium paid remaining the same. Hence, the pay-out amount from the 5th to the 20th year will be in the following sequence: ₹65,581; ₹1,31,161; ₹1,96,742 and ₹2,62,323.
Accidental Death Benefit
My Money Back Plan also offers an accidental death benefit. With this feature, if the insured passes away because of an accident, we will double the cover amount to be paid to the nominee. The only condition for this benefit to take effect is that the insured must be at least 18 years of age.
Tax Benefits
The insured can claim tax benefits on the premium payments made towards this policy under Section 80C of the Income Tax Act 1961. Moreover, all the pay-outs that the insured will receive for the survival benefit will also be tax-free as per Section 10(10D) of the Income Tax Act 1961. According to the same section, the proceeds from death benefit also do not fall under taxable income.
Conclusion
To know more about what the My Money Back Plan has to offer, go to the official website of Exide life. If you are interested in this plan and wish to take things further log on to the official website and buy it now.
Also read: Pros Of Buying Money-back Plan
