Exclusions To Be Aware Of While Buying A Money Back Plan

A Money Back Plan is an ideal solution for persons looking for life insurance, long-term investment, and a reliable source of income all in one package. Unlike other plans, the benefits are paid during the plan term, and the remaining Sum Assured amount, plus any additional incentives, is paid at maturity. Money Back Policy is a great choice for people looking to save money while still being protected. It has a death benefit, a cash benefit, and a maturity benefit to assist you in planning for and meeting all of your emergency needs.

To make an informed decision, you should examine the policy's terms and conditions as well as the exclusions. If you die while the plan is active, the whole sum insured is paid to the policy's nominee, regardless of any already paid Survival Benefits. Due to its nature, the Money Back Plan differs from other current plans. We'll go through some of the most common exclusions in Money Back Insurance Plans in this post.

Money Back Plans' Common Exclusions

The following are some of the most common exclusions for which insurance policies do not provide coverage:

• Endangering Activities A Person's Life

Money Back Plans do not cover dangerous or adventurous activities because to the high risk of mortality associated with these activities, thus they will not be covered. Adventure activities include rock climbing, paragliding, hang gliding, skydiving, and other similar sports.

• Pre-Existing Conditions

A death caused by a pre-existing sickness is neither covered or compensated under the Money Back Guarantee Policy. The policyholder has been in pain since the time they sought for coverage, or maybe even before. Cancer, HIV, and other diseases are only a few examples.

• Suicide

Refund of funds In the event of a suicide death, a life insurance policy does not provide compensation or reimbursement. The bulk of insurance policies do not cover this type of situation. Instead, if this occurs during the first two years of the policy's commencement, the nominee will not get a death benefit; but, depending on the terms and conditions of the policy, the nominee may receive up to 80% of the total premiums paid until death.

• Participation in Criminal and Illegal Activities

Money Back Life Insurance Policies and other insurance policies purchased from any insurer do not cover the risk posed by illegal or criminal activities. Driving while inebriated, taking drugs, and getting wounded in a car accident while without wearing a seat belt are all examples of criminal behaviour.

• War-related occurrences

Money Back Policy, like other insurance policies, does not cover or pay policyholders who die as a result of war or war-related acts. The applicant will not be covered by the policy's death benefits. This is a common life insurance policy exclusion that may have been less common in the past.

Conclusion

Taking into consideration all of the exclusions included in the Money Back Life Insurance Policy. Money Back Policy is a financial policy that protects your loved ones financially in the event of a disaster. As a reason, before purchasing a policy, each buyer should carefully review the terms and conditions as well as the whole document to evaluate what it provides and does not provide. A Money Back policy is appropriate for risk-averse individuals who want to conserve money while maintaining a high degree of liquidity through an insurance plan. In the sad case of the insured's death, the insurance pays the nominee the whole amount pledged without reducing the survivor benefits.

Also read: 

Common Exclusions Under A Money Back Policy

Are Money Back Plans Worth Investing Your Money In?

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.