Money Back Policy
Salient features of a money back policy:-
Policy term and premium term: Policy term is a period during which a person’s life is insured and a premium term is the term during which the policy holder is bound to pay premiums to the insuring company. In most of the cases both these terms will be the same; for ex: if the policy term and premium term is 15 years the sum assured will be paid off in regular intervals and after the end of term there will be no balance of sum assured that the insurer needs to pay the policy holder. While in some cases the policy term will be longer than premium terms (policy term 15 years, premium term 12 years) and the policy holder will be covered with cover benefits till the end of policy term. Here it is to be noted that accidental death that occurs after premium term will not be covered.
Premium paid and sum assured: The premium paid defines the total sum assured and each money back policy can be differentiated on this basis. With higher premiums, short policy term and higher bonuses there are policies that provide the sum assured in the last few years of the policy. With moderate premiums, moderate bonuses and long terms there are policies that provide equally divided amounts of sum assured in regular intervals of policy term. On the other hand there is a policy of LIC with single premium payment and based on premium sum assured will be paid back to the policy holder in regular intervals.
Loyalties, bonus and riders: These will be final features that can make a policy holder confident about his choice. Every policy will have a set of assured bonus that may be shared in regular intervals or got at the end of policy term. Added to these a policy can also provide set of riders; for ex: an accident rider that will provide a part of sum assured in short term installments in course of an accident resulting in permanent disability of the policy holder. An additional premium will have to be paid for such riders.
- Age at entry min/max – 13/50 years
- Sum assured min/max – Rs 50,000/NO LIMIT
- Term in years – 15, 20, 25
- Mode of payment – Monthly, quarterly, half yearly and yearly
- Maximum age at maturity – 70 years
- Policy loan available – NO
- The above conditions are not specific and mentioned in order to provide a generalized idea. Conditions may vary with policies and policy providers.
- There are few benefits of this policy that can pull people with average age of 35 years in India.
- This policy gives way for a person to plan the course of his life with a sum that is expected in regular intervals. Plans such as children’s education, children’s marriage can be executed in a better way with the help of this policy.
- The policy provides a cover for life and complete benefit of survival after each interval.
- A policy holder will be backed with financial flexibility along with peace of mind.
- LIC Jeevan Surabhi
- LIC The money back policy – 20 years
- HDFC money back policy
- Sahara Sampann
- Aviva Dhan vrriddhi
- SBI life – Sanjeevan supreme
- ICICI Prudential cash back
- Aegon Religare money back plan