Money Back Policy Compare and Buy Money Back Plans Online

Author: Somesh Mane

Introduction

Money back insurance policy has a dual benefit of life insurance and investment component in it. In event of the death of the insured during the policy term, the money back plan pays out the death benefit to the nominee/beneficiaries as mentioned in the policy document by the policyholder during the inception of the plan.

Apart from the death benefit, the money back plan pays out the maturity amount over the course of the tenure of the life. In short, money back plan is similar to the endowment plan, but pays back the benefit at regular intervals.

Why does buying money back policy help an individual?

The money back policy provides regular pay-outs; this ensures that there is a steady source of income that helps the policyholder to achieve short-term financial goals during the policy duration. It provides two benefits of life insurance and investment in one single plan. This ensures that policyholder or his/her family have a strong financial flow of money always. Money back plans provide guaranteed return on investment, irrespective of market conditions, making it a perfect fit for people who want both- life protection as well as a guarantee on the source of income. The assured return on investment provides the policyholder an opportunity to generate wealth during the tenure of the plan.

How Does Money Back Policy Work?

Money back life insurance policy offers survival benefits and a great investment option for wealth creation in addition to life protection to the policyholder.

A normal tenure for a money back policy will be around 20 years. The policyholder will start getting regular survival benefits after every few years after the inception of the policy. The regular payout will be around 20% of the sum assured and the remaining balance at the end of the tenure, will be paid out at maturity along with any bonus if applicable.

If the policyholder dies before the policy maturation, the nominee will receive the death benefit which will be the entire sum assured and the policy will end.

Features of the money back policy

There are a number of features of money back policy that sets it apart from other life insurance products

  • The money back plan does not involve any risk to the investment of the policyholder as the sum assured is guaranteed along with life protection
  • The
money back policy provides a regular source of income to the policyholder during the tenure of the policy

  • If the policyholder dies during the tenure of the policy plan, then the nominee is eligible to get the entire sum assured as a death benefit. This is over and above the regular payout already made to the policyholder during the course of the active plan.

Benefits of Money Back Life Insurance policy:

  • Provides life insurance cover for entire policy term.
  • Pays out regular lump-sum payouts throughout the term.
  • Works as a life insurance policy as well as a long-term investment with decent returns.
  • Provides tax benefits to the policyholder
  • Safe investment and does not have much impact due to volatile market conditions
  • Enables constant cash flow at regular intervals to achieve short-term financial goals
  • Great saving option for people who want to invest in single policy and want dual benefits of investment and life insurance
  • Option to enhance the coverage of the policy through riders like disability protection, critical illness etc.

How to select a Money Back life insurance Policy:

Selecting the right money back life insurance policy is vital to ensure maximum benefits from the plan.

Tenure of the policy

When selecting a money back policy, the term of the policy is extremely important. The normal tenure of the money back policy should be around 20 years.

Survival benefits for your financial goals

The money back policy pays at regular intervals and hence, the potential policyholder should check the percentage of the sum assured that will be disbursed at regular intervals. The regular lump-sum amount should be along the lines to achieve your short-term financial goals.

Payout timeline for survival benefits

The payout timeline of your money back policy is another key component. Before buying the money back plan, you should verify the payout timeline of the plan. Different money back plan has different payouts periods.

Tax benefits

You should check if the prospective money back plans that you are going to buy provides you with tax benefits. Some money back plans may not provide tax benefits of the sum assured of the survival benefits paid over regular periods are over and above the certain limit.

Eligibility for buying Money Back Policy:

  • There are certain criteria that an individual needs to meet in order to qualify for the money back policy. Some of the eligibility requirements are mentioned below:
  • The minimum age to buy the money back life insurance policy is 18 years, although it may vary from policy to policy.
  • The policyholder needs to pay the premium as per the premium instalment mode is chosen at the inception of the policy to ensure continuity of the plan
  • The following documents are required to apply for a money back policy
  1. Age proof
  2. Address proof
  3. Full filled application form
  4. Medical reports if asked

Money Back Policy Calculator:

Due to the internet revolution and advancement in technology, buy life insurance policy online is the smartest way. It not only saves a lot of money for the prospective policyholder, but also helps in getting the best fit plan that will give the best-expected output.

Money back policy calculator is the online tool that helps in calculating the premium amount as well as the benefits that will accumulate over time in the plan. The online money back plan calculator can help you know the approximate returns and the cost associated with a particular plan. If you have a financial goal in mind for which you will need a certain amount, then the calculator will help you know how much premium you will need to invest in that particular plan. This gives an accurate estimation to the individuals who can decide if the premium amount is affordable or not. All you need to do is add certain parameters in the calculator such as age, the tenure of the plan, expected maturity amount and it will provide you with the accurate projection of the cost and returns. The overall projection of the returns and cost helps to make a sound financial decision that will help in the successful delivery of the plan and financial goals for the individual.

An individual can compare different money back plans online on insurance aggregator portals such as Coverfox.com and select the plan that best fits their budget and future financial goals. So don’t wait! Check out the money back life insurance policy plan today and start building or strengthening the base of your financial future.