Key Components of a Money-Back Plan
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A money-back life insurance plan is one of the most sought-after plans in India. This plan has several advantages and benefits over any normal insurance plan. It offers the benefits of an investment plan and an insurance plan in the same policy. But like any other big decision of your life, you should make sure that you know all about money-back plans and their key components before you invest yourself in them. Diving into a decision that is going to decide how your future will be without knowing about the plan is just straight insanity. So, keep reading to know all about what a money-back plan is and what its components are.
First Off, What is a Money-Back Plan?
Money-back is the most popular life insurance plan in India. It gives dual benefits of an investment plan along with an insurance plan. This means that you can see your money growing with the fixed assurance that your future will be financially stable.
In this plan, you will have to pay the premium amounts for a few years after purchasing the plan. After that tenure has ended, you will start receiving survival benefits. These benefits are given as a reward by the insurance company to the life insured for surviving. You will receive the regular monthly payouts until the maturity of the policy.
What are the key components of a money-back plan?
Money-back plans offer several advantages over any other normal life insurance plan. Some of the key components of a money-back life insurance plan are:
Survival Benefits
These are the benefits given by the insurance company to the life insured for surviving the tenure. After purchasing the plan, you are supposed to pay premium payments for a specified amount of time. If you survive the tenure, then the insurance company will give your regular monthly payouts in the form of survival benefits.
Maturity Benefits
Maturity benefits is the term used to indicate the total amount that the life insured receives after the maturity of the policy. This amount includes the assured sum, remaining survival benefits, and the bonuses, if accrued any. The life insured receives all of this once the tenure of the policy has ended.
Death Benefits
These are the benefits associated with the death of the life insured. It means that in case an unfortunate event happens and you die, the remaining of your premium payments will get cancelled. Your family will get the maturity amount along with any bonuses received. The insurance company will not deduct the survival benefits, if you have received any, from the maturity amount.
Reversionary Bonus
These are the bonuses announced by the insurance company at the end of each year for several policies. This bonus gets added to the total payable sum of the life insured, which they can receive after the maturity of the policy.
Terminal Bonus
It is the bonus that the insurance company provides for completing the tenure of the policy. These bonuses are given at the discretion of the company and are not certain.
Bonus
It is the added benefit that the life insured receives any time the insurance company makes a huge chunk of profit. It is also given to the individual as a reward for paying all of the premium payments on time.
Final Words
Money-back plans are perfect for people who want to get life insurance and invest their money at the same time. With this plan, you can see your money growing along with staying assured that the financial security of you and your family is assured. Although, you should make sure that you stay well aware of all the key components of this plan before you invest in it.
Also Read: Is it Worthwhile To Invest In Life Insurance Riders?
