Gone are the days when people used to invest in conventional LIC policy. Banks have come up with new financial products far more rewarding, and one such policy is a money-back insurance policy. These policies come with a feature of giving maturity benefits to the policyholder through the course of the policy. This is also called survival benefits. With a money-back insurance policy, you have a guarantee of receiving the money while the policy is continuing. In this blog, we are going to highlight more about money-back insurance policy.
More about Money-back Insurance Policy
As evident from the name, this policy gives back money at regular intervals. This money is paid during the tenure of the plan, and the amount is a certain percentage of the insured amount. These payouts are also called survival benefits. The policyholder gets this benefit during the tenure of the plan and on the maturity of the plan. But in case the policyholder dies during the tenure of the plan, the assured sum is paid irrespective of the fact that the survival benefits have been paid. This makes money back policy the best option.
Key Features of Money-back Insurance Policy
1. Survival benefits– One gets survival benefits at regular intervals during the tenure of the plan. The interval is fixed. Every bank offers different payout plans, so when you are looking for the best money-back insurance policy, you must take this factor into consideration. Another important point that one needs to note is the percentage of the insured system. One must check the different plans, compare the percentage of the sum insured and the interval of payouts before finalizing.
2. Hassle-free payouts– One of the defining features of the money-back insurance policy is that the insured sum is paid in case of death of the policyholder. This remains true whether the money-back benefits were paid.
3. Bonus- These plans come as participating plans in which the bonuses are added, and the total amount of bonus is paid at the time of maturity of the policy or the death of the person.
4. Rider benefits– In addition to survival benefits and bonuses, the best money-back insurance policy offers rider benefits. This is a lump sum amount that is paid only when the contingency covered by the rider occurs during the tenure of the plan.
Best Money-back Insurance Policies
You will find a number of options out there; the following table highlight some of the popular policies:
|Money-Back Insurance Policy Providers Name||Type of Plan||Policy Term||Maturity Age||Minimum Age for Application||Maximum Age for Application||Assured Amount (Minimum)|
|LIC Money Back Policy-20 years||Endowment plan with money back||20 years||70 years||13 years||50 years||Rs. 1,00,000|
|Bajaj Allianz cash Assure||Traditional money back plan||16,20,24, 28 years||18-70 years||0 years||54 years||Rs. 1,00,000|
|SBI Life Money Back Gold||A Savings plan with life coverage||12 years, 15 years,20 years, 25 years||27- 70 years||15 years, 14 years||55 years,50 years, 45 years||Rs. 75,000|
|LIC Money Back policy for children||Child plan||25 years||25 years||0 years||25 years||Rs.1,00,000|
|Canara Smart Stage Money Back plan||Traditional participating money-back Life Insurance Plan||15 years||70 years||8 years||55 years||Rs.1,00,000|
This was the basic information about the money-back insurance policy. If you have still not availed of one, the above-mentioned table will be helpful to you. Make sure that you do a comparison of the different policies, assess your requirement, and then go ahead to choose the best money back insurance policy.