Common Riders Available For Money Back Plans In India
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A money-back policy is a life insurance plan that unlike other such policies allows liquidity. In a standard life insurance policy, the benefit is received when the policyholder dies or the policy matures. A money-back policy, on the other hand, offers pay-outs at regular intervals during the policy tenure.
This policy is considered to be a suitable option for investors who are in their late 30s and are looking for notable pay-outs after a period of 5-10 years to fund their children’s education or marriage or to fund some investment in real estate. What makes this policy attractive is that in case the policyholder passes away during the tenure of the policy, the entire amount of sum assured would be given to the nominee. There would be no deduction of the survival benefits that have already been received.
How to Choose the Best Money Back Policy Online?
When it comes to buying a money-back policy, there are many options available in the market. Choosing the best money-back plan may be easy if you keep in mind the following parameters:
Maximum Sum Assured
Most companies do not cap the upper limit for sum assured, still it is recommended that you check whether the cover you are looking for is available or not.
Cover Provided
Checkout for any available inbuilt covers that may increase the scope of the plan’s coverage.
Availability of Riders
Insurance companies do provide riders but you need to check the list for the rider that you are looking for.
Premium
An important factor, the rate of premium can play a very crucial role in finalising the plan you are looking for.
Money-back Riders
Almost all the companies that offer money-back policies also offer riders. By paying a little extra you can increase the coverage of your plan. Life is unpredictable and these riders can come in very handy when you are in a medical/ financial crisis.
Given below is the list of riders that are available with a money-back policy, however, it is recommended that before you invest in one, you compare the different options available in the market.
- Critical Illness: With this rider, you can avail a guaranteed sum in case you are diagnosed with any of the company-listed critical diseases.
- Accident or Disability Benefit: Any expenses that may arise due to an accident will be borne by the insurance company.
- Waiver of Premium: If you get critically sick or injured, this rider allows you not to pay the premium. With this waiver of premium rider, it can help when you are unable to pay the premium amount and will take care of the future premiums.
This is applicable if the policyholder dies, especially in a Money Back Child Insurance Plan, where the premiums are waived off but the plan continues to pay the benefits as per schedule.
- Hospital Allowance: In case of hospitalisation, you would be eligible to receive a certain amount of cash for the hospital expenses being incurred.
Conclusion
This plan will help you reduce your tax liability. The premiums that you pay towards the insurance plans will be eligible for a tax rebate under Section 80C. The maturity/death benefit is also tax-free for the policyholder.
Also read: How Can You Increase Coverage For MB Plans?
