In the times of COVID-19, it is important to protect yourself and your family. After the increase in the death rates during the COVID-19 pandemic, people Started to take insurance seriously.
There are many life insurances available in the market today, but one such policy is a money-back term plan. So, let’s try to get an answer for what is the Money back policy?
A money-back policy plan/money-back plan is a life insurance plan. The money-back plan has survival benefits, which means it gives benefits to the policyholder in regular intervals rather than giving a lump sum amount at the maturity of the money-back term plan. The policyholder gets some percentage of the principal amount insured at regular intervals. How interesting is this money-back term plan, don’t you think?
A money-back plan provides liquidity which means in case of death of the policyholder, the nominee gets all the entire sum assured to the policyholder at the time of money-back plan application. Under such unfortunate circumstances, the nominee will also get survival benefits that are not deducted from the money-back policy plan/money-back plan.
So basically, a money-back term plan is ideal for people who want returns that are guaranteed on their investments.
Why Do You Need to Buy a Money Back Policy?
This money-back plan is good for investors who want to get assured and guaranteed returns on their investments. With the money-back plan, a person not only gets life protection but also gets an income, which is kind of a regular income. This income comes at regular intervals. The money-back plan/money-back term plan provides assured regular income. It helps people in sorting out their financial goals every month, year, and so on.
With this regular income, one can make down payments for a new vehicle or a home. That provides financial independence for medical expenses or educational expenses, weddings, birthdays, etc. In this money-back term plan, the risk factor is low. Hence, no need to worry about the investment yielding greater results or not. This money-back plan is like an endowment plan that gives benefits like survival benefits, maturity, benefits, death, benefits, and bonus.
These are the reasons why everyone and you need to buy a money-back policy plan/money-back term plan.
Best Money Back Policies in India 2023
Today, in this article we are going to list some of the best money-back policies in India. You can compare all the features for the best money-back policies according to your requirements.
|S.no.||Money-back plans||Premium||Money-back term plan||Eligibility criteria|
|1||SBI Life – Smart Money Back Gold||Monthly, quarterly, annually||12 years, 15 years, 20 years, 25 years||The minimum entry age is 14 to 15 years and the maximum entry age is 45 to 55 years.|
|2||HDFC Life Super Income Plan||Monthly, quarterly semiannual, annually||16 years, 18 years, 20 years, 22 years, 24 years, 27 years||The minimum entry age is 30 days to two years and the maximum entry age is 48 to 59 years.|
|3||LIC Money Back Plan 20 Years||Monthly, quarterly, semiannual, annually||20 years||The minimum entry age is 13 years and the maximum entry age is 50 years.|
|4||Reliance Nippon Life Super Money Back Plan||Monthly, quarterly, semiannual, annually||10 years, 20 years, 30 years, 40 years, 50 years||The minimum entry age is 18 years and the maximum entry age is 55 years.|
|5||Aviva Dhan Samruddhi||Monthly, quarterly, semiannual, annually||10 years, 15 years, 20 years||The minimum entry age is 13 years and the maximum entry age is 55 years.|
|6||Birla Sun Life Insurance Bachat Money Back Plan||Monthly, quarterly, semiannual, annually||20 years||The minimum entry age is 13 years and the maximum entry age is 60 years.|
|7||ICICI Prudential Cash Advantage||5,7 and 10 years||15 years, 17 years, and 20 years||The minimum entry age is zero to 3 years and the maximum entry age is 60 years.|
|8||Max Life Monthly Income Advantage Plan||Monthly, quarterly, semiannual, annually||22 years, 25 years||The minimum entry age is 18 years and the maximum entry age is 50 to 55 years.|
| Read More When can You Borrow from Your Life Insurance
Benefits of Money Back Policy
Here is the list of money-back plan benefits in India.
1. Death Benefit
In this case, after the death of the policyholder, the nominee will get all the death benefits. Principal amount and bonuses will be provided to the nominee as promised.
2. Survival Benefit
When a policyholder is still alive, these survival benefits are provided to them. The regular payouts are spread throughout the term. They are a fixed percentage of the sum assured in the money-back term plan which is decided by the policyholder.
To enhance the basic money-back term plan policy type, add-on policies are provided to the policyholder. They charge an extra premium and cover the policyholder against various risks.
4. Maturity Benefit
If the policyholder survives the whole tenure of the money-back term plan, they will get the sum assured and bonuses collected over the years at the time of maturity.
Most money-back policy plans/money-back plans offer reversionary bonuses. A reversionary bonus is added at the end of each year. A certain percentage of the sum assured is either simple or compounded. A simple reversionary bonus is not added to the sum assured each year; the compound reversionary bonus is added to the money-back plan at the end of each year.
6. Tax benefits
Policyholders who pay towards the money-back policy plans enjoy the Tax benefits that are defined under section 80C of the Income Tax Act, 1961. The survival benefit, maturity benefit, and bonuses are also tax-free.
Money-Back Term Plan Eligibility Criteria
Money-back policies are provided by various insurance companies. They all have different eligibility criteria. Many insurance companies need a list of diseases that a policyholder has had to declare before applying for a money-back plan.
The most common eligibility criteria are:
- Maximum age at maturity (18 years to 80 years)
- The minimum age required is (0 to 60 years)
- Sufficient income to pay the premiums
Money Back Policy – Documents Requirement
There are four types of documents required to apply for this money-back term plan policy. They are listed below:
1. Address proof
PAN card, driving license, Aadhaar card, voter ID, and rental agreement are required to apply for a money-back plan.
2. Income proof
Latest bank statements and Certificates of Employment are required to apply for a policy.
3. ID proof
Passport, PAN Card, Voters ID card, license, company ID card, NREGA job card, Aadhaar card is required to apply for this policy.
4. Age proof
Any government ID card that has your date of birth is required to apply for this policy.
| Read More LIC Term Insurance Premium Calculator
Money Back Policy Premium Calculator
Money back policy calculator tells the policyholder about how much premium/EMI they would have to pay as per the policy. This is a very helpful financial tool that will allow the policyholder to plan their finances well in advance.
Money back policy calculator will determine how much money a policyholder needs to keep aside monthly, quarterly, and annually. To use the money-back policy calculator, the policyholder needs to know the policy they want and the sum assured they expect. The input of age, the duration wanted for the policy, and gender is required by the money-back policy calculator.
Policyholders can also add the money-back policy riders in the money-back policy calculator for accurate calculations. The riders are additional policies that policyholders can add to their insurance scheme.
Money Back Policy Example
Imagine the policy was bought at a time when the child of the policyholder was 10 years old. In such a case, the first survival benefit payment at the end of 5 years of the money-back policy plans can be used to pay off the tuition fees of any kind of subject field.
The second payment of the survival benefit is received when the child is now 20 years old. Now, this benefit can be used to pay for post-graduation studies or can be used to pay for even foreign education expenses. Policyholders can use the money-back policy calculator to get more information about their policy.
The third survival benefit accrues on the 15th year of taking the policy plan. It will be used to pay for the wedding expenses of the child.
The fourth installment of the survival benefit will accrue at the 20th year of the policy when the policyholder also receives the maturity amount and the bonus. Policyholders can use this amount for their retirement funding as well. It can also be used to buy a house or pay for a holiday. For more info, check the money-back policy calculator.
Money Back Policy – FAQs
Q1. What is a Money Back Policy Plan?
Ans. Money back policy plans are insurance that provides survival, death, maturity benefit, and bonuses to the policyholder.
Q2. Name two Money Back Policy Plans/Money Back Plans.
Ans. Max Life Monthly Income Advantage Plan and Birla Sun Life Insurance Bachat Money Back Plan are the two amongst many other policies. Policyholders can use a great tool called money back policy calculators to check the status of their premiums.
Q3. What is a Money Back Policy Calculator?
Ans. Money back policy calculator is a premium calculator for the policy chosen by the policyholder.
Q4. What is a Money Back Term Plan?
Ans. In money-back term plan insurance, the policyholder gets a percentage of the sum assured at regular intervals. In case of death of the policyholder, the nominee gets the entire sum assured and survival benefits.
Q5. Which is a Better-Money Back Policy or Term Insurance?
Ans. Term insurance provides big life covers than a money-back policy.
Q6. What are the Documents Required to Apply for the Money Back Policy?
Ans. ID proof, age proof, income proof, and address proof are the documents required to apply for a money-back policy.
Q7. What are the Eligibility Criteria for Money Back Policy?
Ans. The maximum age at maturity is (18 years to 80 years)
- , the minimum age of entry is (0 to 60 years)
- and Sufficient income to pay the premiums. Use of a money-back policy calculator in such a case is a must.
Q8. Do We Even Need a Money Back Policy?
Ans. Yes, everyone needs to get a money-back policy.