Best MB Plans In India
Table of Contents
A money back plan is ideal for people who want a guaranteed return on their investments and are looking for regular payouts at the same time in addition to an insurance cover for themselves for the same money they are putting in as premium. Unlike a standard life insurance policy that only pays an amount after the maturity of the policy, the money back plan starts to pay an amount that is called a ‘survival benefit’ over the lifetime of the policy. This survival benefit is given after a few years from the start of the money back plan and continues until the maturity of the money back policy. The survival benefit, as the name suggests, is a reward from the company to the insured individual for surviving. This benefit is only payable if the insured is alive. In case of occurrence of an unfortunate event that results in the death of the insured party, these survival benefits do not accrue any more. In such cases, the nominee(s) receive the whole of the maturity amount, irrespective of how much survival benefits have been paid along with any bonus that may have accrued. Thus, the money back plan offers regular income along with a maturity benefit just like standard life insurance policies.
Popular Money Back Plans by Insurers
LIC Money Back
Feature and Benefits:
- Comprehensive life insurance cover against death.
- The amount payable on death is the Sum Assured plus all bonuses, as a lump sum, irrespective of all survival benefits paid earlier.
- With-profit plan which participates in the profits of LIC’s life insurance business.
- Surrender Values are available.
Popular LIC Money Back Plans
- LIC Money Back Plan 20 Years
- LIC Bima Bachat
HDFC Life Super Income Plan – Money Back policy
Feature and Benefits:
- Limited premium paying terms of 8, 10 or 12 years.
- Guaranteed yearly income, for 8, 10, 12 or 15 years.
- Coverage against death throughout premium paying term and pay out period.
- No need for medical tests on the completion of a short medical questionnaire.
- Regular income at the rate of 8.0% to 12.5% of the Sum Assured on Maturity, payable yearly.
SBI Life – Smart Money Back Gold
Feature and Benefits:
- Survival benefits of 110% of the Sum Assured paid till maturity.
- 4 term options – 12, 15, 20 and 25 years.
- Monthly, quarterly, half yearly and yearly premium paying modes.
- 4 riders available:
SBI Life – Accidental Death Benefit Rider.
SBI Life – Accidental Total and Permanent Disability Rider.
SBI Life – Preferred Term Rider.
SBI Life – Criti Care 13 Non-Linked Rider. - Tax benefits.
Birla Sun Life Insurance Bachat Money Back Plan
Feature and Benefits:
Monthly base premium amount can be chosen from these bands:
- Band 1 – Rs.400 to Rs.599, per month.
- Band 3 – Rs.600 to Rs.800, per month.
- Band 4 – Rs.900 and above, per month.
- Annual and semi-annual modes of premium payment entitles you to rebates of 2% and 4% respectively.
- Survival benefit of 20% of the monthly base premium paid out on the 5th, 10th and 15th policy anniversaries.
- Maturity benefit payable after 20 years of the policy term includes
- All monthly base premiums paid, plus
- All Bachat addition earned, plus
- Loyalty additions, minus
- All Survival Benefits paid.
- Death benefit includes:
All monthly base premiums paid (or Sum Assured, whichever is higher), plus
All Bachat addition earned, plus
Loyalty additions, minus
All Survival Benefits paid.
Reliance Super Money Back Plan
- Money back benefits paid every 5 policy years, until maturity.
- Increasing regular monthly income.
- Loyalty addition payable at the end of the premium paying term.
- Maturity addition payable at the end of the policy term.
- Policy term options of 10, 20, 30, 40 and 50 years.
- Premium paying term is only half of the policy term.
- Monthly, quarterly, semi-annual and yearly premium paying modes.
Conclusion
You may purchase a life insurance policy and invest in a separate mutual fund, etc. and expose yourself to the risks involved in a mutual fund investment. It’s ideal for those with a high risk appetite. For those who find that their life savings are too valuable to leave to chance, an endowment life insurance policy with a money back policy is ideal.
Also read: Maturity Benefits In MB Plans
