Everyone wants to have a safe and secure future. The right kind of investment policy is going to help you with the same. The best part is that there are a number of such policies that are going to give good returns and will safeguard the future of your loved ones and yourself. In this blog, we are going to focus on one such policy, and that is the money-back plan insurance.
What is the Money Back Insurance Plan?
Analogue to the conventional insurance plan, the money-back insurance plan pays out the maturity benefits in the form of survival benefits that a person gets through the policy. Thus it is an endowment plan in which you get the benefits in the form of regular liquidity.
In this policy, the policyholders get a certain percentage of the insured amount as survival benefits. These benefits are paid during the plan tenure, and at the time of maturity, one gets the remaining sum. In case of death of the policyholder, then the entire insured amount is paid irrespective of the survival benefits that were paid when the person was alive. It adds uniqueness to the plan. Some of the key features of the money-back insurance plan are:
1. The survival benefits are a certain percentage of the insured amount
2. These survival benefits are paid at regular intervals. This interval is different for different insurance providers. Hence you must compare the different plans before making a final call.
3. On the maturity of the plan, the remaining amount of the insured sum is paid as maturity benefit. In case of death, the entire amount is paid even if the money-back benefits are paid.
4. This plan comes with an added bonus, which is paid on the person’s maturity or death.
5. The money-back plan insurance also comes with rider benefits which are paid as a lump sum only.
How does the Money Back Insurance Plan Works?
Let’s explain how the money-back insurance plan work with this simple example. Let’s say A invests in money back plan for the assured amount of Rs. 10 lakh and chooses 25 years as the tenure. A also pays regular premiums throughout the policy. The plan also offers survival benefits @20% of the insured amount after every 5 years, and on maturity, 20% of the amount is paid along with the benefits.
As per this plan, A gets Rs. 2 lakh every 5th year, 10th year and 15th year and 20th year of the policy. At the end of 20 years, A has got 8 lakh, and on the maturity of the policy, Rs. 2 lakh added bonus is paid.
In case A dies in the 18th year, then Rs. 10 lakh is paid to the policyholder along with added benefits even if she has got Rs. 6 lakh as survival benefits.
Provides Survival benefits
Benefits of Money Back Insurance Plan
Now that you have garnered enough information about the money-back insurance plan, you must also know about the various benefits of this policy:
1. The policyholder gets the money back and a certain percentage of the insured amount as survival benefits.
2. The policyholder gets the benefits while he/she is alive.
3. It is a risk-free return because you are assured of the amount.
These are some of the plan’s key benefits, and if you are looking for a good return and enjoy a good and risk-free investment, then this policy is for you. Make sure that you compare the plans and the premiums along with the benefits before making the final call.