The A-Z of a Money Back Policy

Getting insurance cover is necessary to protect you and your family against unfortunate circumstances like any critical illness or death. However, what if you could get insurance cover and a prospective investment plan in the same plan and premium you’re paying? A money back policy is an all-inclusive package where you get insurance, payouts at regular intervals and the total amount of maturity benefit.

Now you know how a money back policy has relatively more benefits than standard life insurance, let’s see why else you would need it.

Why Do You Need Money Back Policy

A money back policy is the perfect plan for individuals who want a guaranteed return on their overall investment in the plan. Additionally, a money back plan also provides an amount known as ‘survival benefit’ to the policyholder regularly till the maturity of the money back policy. As the name suggests, the ‘survival benefit’ is the reward you get as a policyholder for surviving.

In case of standard life insurance cover, your family is protected if you occur any unfortunate circumstance like a severe illness or, worse, death. While in a money back policy, you get a guaranteed return which is the ‘maturity benefit’ after the plan and matures on top of the survival benefits you have received regularly.

If the policyholder expires before the maturity of the money back plan, the nominee(s)or the beneficiary will receive the lump-sum amount called the ‘death benefit’. Additionally, for more security, you can get other add-ons or riders on the money back policy to receive maximum benefits out of a single investment plan. Also, you get insurance cover for your family in the same plan.

For the individuals who are sceptical about investing due to high-risk and low returns, this is an ideal plan where you and your family are protected and have an alternate source of income through this plan. Term life insurance policies cannot hold a candle to the money back plan as the insured individual does not only receive benefits after their demise, unlike a life insurance cover.

According to Trading Economics, the unemployment rate in India reached its peak at 23.50% in April 2020. It was due to the impact of the pandemic that led to such a terrible situation for which a lot of people suffered financially. In order to avoid sudden financial setbacks due to unemployment or loss in business, a money back plan can act as a crucial alternative source of income when you’re trying to get back up on your feet during times of crisis.

Eligibility for Money Back Policy

  • Depending on which policy you are applying for, the policyholder has to be under the maximum age and above the minimum age as required by the policy provider.
  • The policy has guidelines as per which you must be able to pay the assured sum timely.

Key Features of Money Back Policy

Low-Risk Investment Option

Individuals looking to secure themselves and their families financially but are hesitant about investing can opt for money back plan. Even if you are not aware of what is investment and how it works, you will get guaranteed returns and other benefits. It is the most secure form of investment that also provides insurance coverage in case of the policyholder’s demise.

Income Source as a Reward

After a few years from the start of the money back policy, the policyholders receive an amount of money called the ‘survival benefit’ every few years as a reward for surviving and taking care of himself/herself. No other plan has such benefits where the policyholder receives anything before the maturity of the plan or their demise.

No Cut-downs on the Maturity Amount

Although the policyholder receives survival benefits every few years until the plan’s maturity, no amount is deducted after the maturity of the money back plan. The policyholder is provided with the same amount that they were assured at the beginning while applying for the money back plan regardless of what they received in the regular survival benefit payouts. This increases the overall payout of the plan.

Benefits of Money Back Policy

Insurance Cover & Return on Investment in the Same Plan

The money back plan offers a guaranteed return on investment, maturity benefit, and survival benefit all in one plan. So by investing in the plan, you step into a low-risk option where you are assured of getting significant returns on the amount you invested along with life insurance cover too. No other insurance and investment policies have as many benefits as this one.

More Secure Than Volatile Market-linked Investment

Stock markets and Cryptocurrency, though prospective, are highly volatile markets and even the wisest investments are sometimes not safe enough. The money back policy protects against the loss of investment by offering guaranteed returns that other investment plans cannot provide.

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