5 Frequently Asked Questions Before Purchasing A Money Back Plan

When it comes to buying life insurance, the majority of people are unsure which policy type to select. If you do decide to acquire a Money Back coverage, remember that you must first have a clear understanding of its foundations. Those seeking a Money Back policy should be aware that it is a type of life insurance policy that pays out a monthly percentage of the total sum guaranteed. It's important to remember that the amount a person receives under Money Back insurance is fixed. The majority of customers choose a Money Back plan in order to enjoy both insurance and investment benefits. If your plans are identical, you can also choose a Money Back Guarantee.

Frequently Asked Questions about Money Back Policies

Here are some of the most frequently asked questions about Money Back Guarantees that you might find helpful:

1. What are the benefits of having a Money Back guarantee?

A Money Back policy's main elements are surviving benefits, death benefits, and maturity benefits. If the policyholder survives to the end of the policy's term and the policy remains valid, he or she will receive a monthly income at regular intervals. In the case of the policyholder's untimely death, the death benefit (maturity benefit + earned bonuses) is paid to the nominee. When an insurance policy approaches its expiration date, the maturity benefit is paid out.

2. What are the conditions for buying a Money Back plan?

The following are the prerequisites for participation: The policyholder must be older than the minimum entry age, but younger than the maximum entry age. It's crucial to keep in mind that each policy's minimum and maximum entrance age varies. The policyholder must be able to pay the full assured amount, according to the policy conditions.

3. Is the money I receive as a result of the Money Back policy taxable?

The cash received by a policyholder is tax-free under section 10(10D) of the Income-Tax Act 1961.

4. Is it possible to bring a Money Back Guarantee back to life?

Yes, within two years of the preceding premium payment, a Money Back guarantee can be reestablished.

5. Is a Money Back policy transferable?

No! A Money Back Guarantee policy cannot be transferred. It might, however, be abandoned.

Conclusion

Are you ready to invest in a Money Back plan that also serves as an insurance policy? If that's the case, think about your financial objectives and goals, your risk level, and how long you want to stay active before buying a Money Back plan. You may be sure that choosing a Money Back plan after thorough consideration will benefit you in a variety of ways. To prevent being financially wrecked if things go wrong in the future, you must have a Money Back plan in place right now. It assists in the creation of a corpus for future prosperity and growth. Investing may be done for a variety of purposes, including a child's education, business development, and so on. As a consequence, deciding on a plan now that you can rely on afterward is a wise choice.

Do read - Comparison Of Money Back With Endowment Plans

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.