Get More From Your Insurance Policy with Money-back Plans
Are you looking for an insurance policy that offers not only financial security but also a regular income? Look no further than Moneyback plans. These unique insurance policies combine the benefits of both insurance and investment, providing you with a steady stream of funds throughout the policy term.
What are the advantages of money-back plans?
One major advantage is liquidity. Long-term policies can span 15 to 20 years, and having access to regular income during this period can be crucial.
Moneyback plans to provide this liquidity through survival benefits, giving you financial stability when you need it most.
But that's not all - some come with Guaranteed Additions or extra Moneybacks. These additional payouts further enhance your returns on investment.
Why choose moneyback plans as an investment option?
Money-back plans are more than just insurance policies - they're also smart investments. With these plans, you can enjoy various efficient benefits such as survival benefits (payouts at regular intervals), maturity benefits (sum assured paid out at maturity), tax benefits (potential tax savings), death benefits (financial protection for loved ones), and other riders that provide added coverage in times of need.
What is the difference between moneyback and endowment policies?
Endowment policies are long-term plans that provide a lump sum payment after maturity or in the event of the policyholder's death. On the other hand, money-back policies are short-term plans that offer regular payouts during the policy duration.
With an endowment policy, you can expect to receive the sum assured along with any applicable bonuses once it reaches maturity or if unfortunate circumstances occur. On the other hand, a money-back policy provides a percentage of the sum assured at regular intervals during its term.
What are the minimum investment and Maximum investment for a moneyback policy?
Both minimum and maximum investment for a moneyback policy varies depending on your chosen insurance company and specific policy. To find out more about their offerings and determine what suits your needs best, we recommend reaching out directly to your preferred insurance provider.
How do money-back plans work?
Moneyback plans are designed to provide you with regular payouts, known as survival benefits, at predetermined intervals during the policy term. This means that instead of waiting until the end of the term to receive your sum assured, you'll receive a percentage of it at regular intervals. And don't worry - at the end of the policy term, you'll still receive the remaining sum assured.
Here's how the money back policy works:
- Premium Payments: As a policyholder, you make regular premium payments towards the policy.
- Intelligent Investments: The insurance company takes these premiums and invests them strategically across various investment instruments. This ensures potential growth and maximizes returns on your investment.
- Regular Payouts: During the course of the policy duration, you receive a pre-determined percentage of the sum assured at regular intervals. These payouts provide you with financial support at important milestones or when unforeseen expenses arise.
- Survival Benefits: If you successfully complete the entire term of your money-back policy, you will receive not only the balance sum assured but also any additional bonuses that may have accrued over time. This means that even if life takes unexpected turns along the way, insurance companies ensure that your financial goals remain intact.
What is the policy term for a money-back policy?
The policy term for a money-back policy refers to the duration of coverage provided by the policy. It denotes the period during which the policyholder is protected by the insurance plan.
Can I surrender my money-back policy before maturity? If yes, what will be the surrender value?
If necessary, you have the option to surrender your money-back policy before its maturity date. However, keep in mind that the surrender value depends on factors like your insurer and how long your policy has been active. Typically, it is calculated as a percentage of total premiums paid.
Is there any tax benefit on money-back policies?
Money-back policies offer potential tax advantages. The premiums paid towards such policies are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. Moreover, when these policies reach maturity, any proceeds received are generally exempt from income tax under Section 10(10D) of the same act.
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