Ans: Money back policy is a type of traditional life insurance plan. It provides the dual benefit of insurance and investment. It offers the lump sum assured at the maturity of the policy or in case of early death of the policy holder.
Ans: The key features of money back insurance policy are as follows: Guaranteed returns: Since money back policy provides insurance cover along with safe investment option, there are guaranteed returns from this plan. Income on the maturity: Like traditional life insurance, money back insurance policy provides the sum assured at the end of the policy term Income during lifetime: Money back policy ensures that the insured party receives a sum every few years (usually 5 years) after the completion of the policy tenure. Income on death: In case of the policy holder’s death the beneficiary will receive the sum assured as death benefit. Availability of add-ons: The policy holder can add on riders with the basic policy. Money back insurance policy riders include term rider, personal accident rider, disability rider, critical illness rider etc. Bonus amounts: There are two types of bonus amounts with this policy , namely, reversionary bonus and additional bonus.
Ans: The riders available of money back policy are as follows: Critical Illness rider: This rider offers a guaranteed sum if the Insured is diagnosed with some critical illness including major organ failure, coronary diseases, different types of cancer etc. Accident rider: In case the policy holder’s unexpected death due to accident the nominee receives a sum assured Disability benefit rider: This type is rider helps in case the policy holder is left paralyzed due to some major accident in his life. Hospital cash rider: The policy holder receives daily cash for hospital expenses in case of any medical emergencies. Term rider: This rider is a kind of death benefit. It is the sum assured handed over to the nominee only in case of premature death of the policy holder before the completion of the policy tenure. Waiver of premium rider: This rider prevents the policy from getting lapsed in case the policy holder fails to pay regular premiums due to some reason. Accelerated sum assured rider: This is a type of critical illness rider. This rider offers the sum assured to the policy holder immediately if a critical illness is diagnosed. The policy holder doesn’t have to pay the premiums any longer. The policy terminates but the total sum assured is received.
Ans: All investment products involve some amount of risk. Only Money Back Policy is a type of endowment plan that is less risky and guarantees good return.
Ans: There are tax benefits with this plan. By opting for money back plan you can reduce your tax liability. If the maturity amount is more than five times the premium paid during policy tenure, the sum assured gets exempted from Income Tax deduction.
Ans: Anyone who wants to make investment through low risk instruments, one who wants both wealth creation and life insurance, one who expects good returns from his investments, and also who wants to get paid during the term of the policy to meet different requirements in life, can buy Money back policy.
AAns: If you fail to pay your premium on time the policy will enter Grace period. If you again fail to pay your due premium during this period your policy will be lapsed. But if you already have the Waiver of premium rider added to your basic policy, the policy will be saved from being lapsed.
Ans: There is no fixed premium Payment frequency of money back plan. The frequency is generally of quarterly, half yearly or yearly basis. However, it completely depends on the decision of the Insurance Company.