Money Back Policy among the Life Insurances is a new Trendsetter and is becoming increasingly popular in India.
What is a Money Back Policy?
Money Back Policy is an attractive combination of providing financial protection in the event of the death throughout the term of the policy and on survival it has a provision of periodic payment at specified duration during the term of the policy.
It fulfils the twin objective of providing the financial support to the family members of the deceased policyholder anytime before the maturity of the policy and lump sum amount at the time of the maturity to the surviving policy holders. The policy is generally available for the period of 20 to 25 years.
One important and the attractive feature of the policy is that in the event of the death of the policyholder during the term of policy the death claim is made up of full amount assured without deduction of any survival benefits already paid. And the bonus is also calculated on the full sum assured.
Therefore unlike the ordinary insurance plans where the survival benefits becomes payable only after the policy expiration, the Money Back Policy provides for periodic payments of survival benefits during the term of the policy during the life term of the policy holder.
Importance of Money Back policy
Money Back Policy protects the financial interests of you family under the un-fateful events of death or critical illness of the policy holder. Periodic payments create wealth for meeting the financial needs or commitments in any important events of life.
Money Back policy offer both investment and insurance in one package and this is one main reason of the popularity of this policy. Moreover, the premium paid is tax deductible under the Tax laws of the country. So the premium you pay is tax free.
Key Benefits of the Money Back Policy
- If a policy holder dies during the term of the Policy was in force, the sum assured on death i.e. death benefit is paid in full.
- Apart from the full payment of the assured sum, additional and other bonuses are also paid in full.
- in the case where the Policy holder survives, 20% of the basic sum assured is paid at the end of each of 5th, 10th and 15th policy year.
- Policy also provides for the Maturity benefits whereby is a life assured has survives the stipulated date of maturity, 40% of the assured sum along the additional and other bonuses becomes payable.
- The additional bonuses paid are the profits of the corporation which the policy holder gets entitled to receive provided the policy is in full force.
Money back policy has become very famous quite lately because of the reason that life is uncertain and that it provides a protective umbrella to secure the loved ones by supporting them financially. This policy is quite useful and beneficial.
