Exclusions under money back plans offered by Aditya Birla Sun Life insurance

Life is uncertain. There is no guarantee of life. In response to that Insurance policies have become an important aspect of our lives. Promising a safe and secured present and the future. There are various types of insurance policies in the market, which offer irresistible benefits. Whether these are handsome sum plans, these variants have become most popular among the novices and experts.

Money Back Plus Plan is a traditional endowment plan with limited payment options. Policy helps the policyholder to fulfill his financial goals easily using the regular payouts provided during the policy. However, the reason money back policy plans came into the limelight is because of the bonus amount that it guarantees in such short intervals. Other benefits offered by the Money back plans are Maturity benefit, Death benefit, Guaranteed Survival benefits, bonuses, loan offers, Tax benefits, Riders, Premium rebates, Sum assured rebates, grace period and free look period.

Although these benefits sound really beneficial that will make one choose this type of plan over others, however this plan has its own set of exclusions as well.

In this Article, we will keep a focus on benefits and exclusions of Money Back Plus Policy

List of exclusions under the Money Back Plus Policy

There are certain exclusions under Money Back Plus Policy as follows: 

• Suicidal Death

  In case the insured person commits suicide within one year of the initiation or revival of the policy then the beneficiaries will receive the total amount of the premium paid till the date of death.This exclusion works out for the both the parties involved in the contract. The insurer will not be liable to pay the entire sum assured or the periodical bonus and after the death of the insured person the riders or the beneficiaries will at least receive some amount in return from the policy.

• Reduction in Policy Benefits if the Insured Person is Unable to Pay the Premium

There are many policy plans out there in the market which does support you during the times of distress. In the money back policy if one is unable to pay the premium on the due date then he or she will receive a grace period of 30 days to pay the premium amount with no extra charges. In case there is no payment of the premium amount for two complete years then the listed benefits under the policy will cease immediately. Another scenario is that if one has paid the premium for a minimum of two complete years and not afterwards, then the policy will continue with a reduced paid-up basis.

In order to continue the policy with its full potential in such scenarios, one has to pay the total due that is left from the first instance with the additional charges.

Conclusion

As per the policy details money back policy doesn’t have many exclusions, which makes it the best option available in the market. Unlike other policies where you have to wait for the endowment amount here you are getting the benefits in monetary terms in much shorter periods of times and that too on multiple occasions. This type of policy is surely an out of the box kind of idea and it does sound tempting as well, however before purchasing any policy plan it is better to discuss the same with an expert or an advisor. 

Also Read: Understanding the Basics of Money Back Policy

Tax Benefits In Money Back Insurance 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.