What is Money Back Term Insurance Policy?

Money-Back Term insurance policy doesn’t have an investment component but assures a pre-decided amount on the death of the policyholder. It offers the lowest premium, which gradually increases with the age of the insured. 

There are different types of term insurance plans; if a person is looking for the best insurance policy, one can opt for a term insurance plan with a premium return. The best part about this policy is that you will get back the premium amount after the policy matures.

Benefits of Term Insurance Money Back Policy

Assured returns: The term insurance money back policy gives you a guaranteed return. With this, one can plan the future rightly. Since policyholders know about the amount they will get after completing the policy, they can plan their future well.  

Survival benefit: One also gets the premium paid during the term of the policy. Hence, it becomes a good choice for those who want to get some return during the policy.  

Rider benefit-The simple structure of the term insurance money back policy makes it so popular; it also enhances the coverage. The policyholder also has the provision to enhance the insurance cover by opting for the optional riders. It can be taken to cover accidental coverage and illness.  

Tax benefits: In addition to all this, one also gets tax benefits. It reduces the tax liability on the person. As per Section 80C of the Income Tax Act, 1961, the premium paid accounts for a tax deduction of up to Rs 1.5 lakh per annum. 

With all these benefits, one must go ahead with the money-back term insurance policy. You can choose from the different options, but you must check the insurance coverage and premiums before going ahead while opting for one.

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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:

Conclusion

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.

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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.

Important Things You Should Know About Money Back Plan Insurance

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.

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These insurance programs are designed to settle the money-back demand of a client if the product they have purchased fails to meet their expectations. In other words, if you insure a product with a money-back insurance policy at the time of buying, you can claim the spent money for a refund if you are not satisfied with the product.

More About Money Back Plan Insurance

Money Back Plan Insurance can be purchased at the time of buying a product. Certain policy companies offer this plan in their insurance policy program. Different policies under this insurance program have different features. Unlike other insurance places, you can buy this money-back insurance plan on a single purchase. You can claim the benefits before the expiration date.

By getting a money-back policy on the product, customers can be tension-free about the fact that they can claim their money if the product fails to meet their expectations within the expiration period. The claim of this insurance plan is very easy. All you have to have a valid point to claim the money-back compensation.

No, harms caused by the exterior impact will not be covered by this policy. If the quality of the product is unsatisfactory or any technical problems occur or the product comes with a missing part, you can avail the money-back claim.

Wrapping Up

So, it is quite obvious why you should get yourself money back plan insurance at the time of buying an expensive product. This gives an ultimate security to your money-claim benefit and makes you a smart consumer as well.

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