Documents Required for Buying a Money Back Policy

Documents Required for Buying a Money Back Policy
Benefits Of Money Back Policy
Conclusion

A money back policy is a type of plan that helps the policyholder to get a percentage of sum assured at regular intervals during the policy tenure instead of receiving the lump sum money at the end of the tenure. It is similar to an endowment plan with the effective benefit of liquidity.

Survival benefits are known as pay-outs of the money back policy. These payouts are made at regular intervals during the policy term along with a maturity benefit which is paid at the end of the policy term. This is the reason why money back plans have been increasingly gaining popularity among all insurance products.There are certain documents that are required by the individual to attain a Money Back Policy.

Documents Required for Buying a Money Back Policy

Following is the list of documents which are usually required at the time of purchase of a Money Back Policy -

Identity Proof

It is the first and foremost proof that is required to purchase a money back policy. Identify proofs consist of Adhar Card, Pan Card, Driving Licence, Passport and Identity Card. But in some cases an official letter with an attached photograph is required to be signed by an authority.

Age Proof

Most of the insurers also ask for a document as age proof to know about your eligibility. Age proof can be any document which includes your date and year of birth. Apart from the above mentioned ID proofs, you can submit your birth certificate, school and college migration certificate or leaving certificate as the Age proof.

Address Proof

This is also an important document required by you while purchasing Money Back Policy. They required the official proof of your permanent address. For this, you can submit your PAN Card, Passport , Driving License, Voter's ID or any other similar document. You can also submit utility bills for the telephone, gas connection, electricity or bank statement / ration card.

Income Proof

This is the last and most important document that is required along with other documents to purchase the Money Back Policy. This is the document that assures the insurer that whether you will be able to pay the premiums on time or not during the entire policy tenure. Income proofs play a huge role in determining the sum assured for your money back policy.

Benefits Of Money Back Policy

There are certain benefits that you will enjoy under the Money Back Policy. Some of them are listed below -

Survival Benefits

Amount received by the policyholder after every few years over the tenure of the policy. The payment gets started after some years after the policy begins and ends on attaining maturity.

Death Benefits

Death Benefit is received by the nominee of the policy in place of the policyholder. This benefit consists of sum assured of the money back policy along with additional bonus provided by the company. But, the survival benefit is not included in it as they are only provided to the policyholder when they are alive and well.

Maturity Benefit

This benefit is received by the insured person on attaining the maturity of the money back plan. It includes three components:

Sum Assured: This is the total sum that is chosen by the policyholder in the beginning of the policy.
Bonus: This includes the two types of bonuses that are Reversionary Bonus and Additional Bonus. Reversionary bonuses are declared by the insurer at the end of the year. The latter mostly depends on the performance of the company and the policyholder during the tenure.

Conclusion

Money Back Plan is an ideal choice for those policyholders who are looking for a dual benefit option of safety and security of savings in a single plan. These Policyholders can purchase the plan through above mentioned documents.