HDFC Life Money Back Plan: Everything You Need to Know
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A classic participation plan, the HDFC Life Super Income Plan guarantees life insurance coverage in addition to providing guaranteed income for a predetermined duration. You won't have to worry about future expenses thanks to a consistent income, which helps you reach your financial objectives.
Features of HDFC Life Money Back Plan
Different features associated with this money back policy are listed ahead.
· Regular income following the premium pay period for 8 to 15 years
· Issuing of the policy without hassle.
· Assurance Base Income due yearly during the payment period.
· Flexibility to pick the period of the coverage and the payment of the premiums.
· Boost future regular income.
· Loan against the Policy facility.
Benefits of HDFC Life Money Back Plan
Without knowing about the benefits of HDFC Life insurance Money Back Plan, you wouldn’t know why to chose this particular policy. Below are the benefits of HDFC Life Money Back Plan.
1. Maturity Benefit
About preserving life The Maturity Benefit payable, which is insured through the end of the policy term, is the sum of the Last Assured Basic Wage payout, Accrued Reversionary Incentives, Interim Reward, and Terminal Bonus. The policy is canceled and no further payments are made after the maturity benefit has been paid.
2. Death Benefit
The Death Benefit payable in the event of the life covered is the greater of the Sum Assured on Death plus Accrued Reversionary Bonuses plus Interim Bonus plus Terminal Bonus or 105% of the premiums paid. Here, the amount insured upon death exceeds the amount insured upon maturity or the multiple of the annualized premium. For entering age up to 50 years, the yearly premium is multiplied by 10; for entry age after 50 years, it is multiplied by 7.
The Death Benefit is not diminished by any previously paid survivor benefits in the event that the life insured passes away during the payout period. After the death benefit is paid, the insurance coverage expires, and no further payments are then due.
3. Surrender Amount
After paying all outstanding premiums for at least two full policy years, for a total of eight years of premium payments, the policy may earn a Guaranteed Surrender Value. For premium payment terms of 10 and 12 years, the Guaranteed Surrender Amount can be obtained following payment of all outstanding premiums for at least 3 complete policy years.
4. Rewards
At the conclusion of each fiscal year, the Simple Reversionary Bonus is announced. It is calculated as a portion of the Sum Assured on Maturity. It becomes a guaranteed benefit payable at maturity when incorporated to the policy. Reversionary bonuses are not benefits that are assured to be received; instead, they are based on actual experiences with regard to invested capital, mortality, expenses, etc.
The interim bonus is paid based on the bonus rates announced by the company in the case of surrender or mortality during the interval between valuations. At the conclusion of the policy term, the terminal bonus is payable. It is an uncertain reward that is based on real future performance.
Conclusion
To conclude it all, HDFC Life Money Back Plan has a number of features as well as benefits that make it an ideal choice for you. Once you are clear about this money back plan, you will be able to make appropriate decisions.
Also Read: Are There Tax Benefits in Buying Money Back Plans?
