Who Can Buy MB Plans In India?
Table of Contents
As the name suggests, a money-back policy is a policy which gives money-back at regular intervals. This money-back is paid during the plan tenure and is a percentage of the Sum Assured. Money-back pay-outs are called Survival Benefits. These benefits are paid during the plan tenure and on maturity, the remaining Sum Assured is paid along with vested bonuses. However, if the insured dies during the plan tenure, the full Sum Assured is paid irrespective of the Survival Benefits already paid. This is what makes the plan unique.
Some of the salient features of Money Back Policy are:
- The Survival Benefits are calculated as a percentage of the sum assured.
- Survival Benefits are paid at regular intervals during the plan tenure. There is a fixed interval when the benefits would be paid. Every plan has a different payout structure. Similarly, the percentage of Sum Assured paid as Survival Benefits is also not fixed and varies between different plans.
- If the plan matures, the remaining portion of the Sum Assured (actual Sum Assured less the Survival Benefits already paid) is paid as maturity benefit. However, in case of death, the entire Sum Assured is paid irrespective of the money-back benefits already paid.
- Money-back plans usually come as participating plans where bonuses are added. The accrued bonus is then paid on maturity or on death.
- Riders are also available under many money-back plans. Rider benefits are paid as a lump sum only when the contingency covered by the rider occurs during the plan tenure.
Eligibility Criteria for Buying Money Back Policy
The eligibility criteria to buy a money back plan is: One must meet the entry age criteria as mentioned in the policy wordings before purchase. One can’t extend the policy beyond the maximum age allowed under the money back plan. One must adhere to the plan’s premium payment term and mode.
Documents Required For Buying Money Back Policy
Mentioned below are the documents required for buying a money back plan:
- Income proof - Salary slips, income tax returns, bank statements, etc.
- Address proof - Driving License, Aadhaar card, voter’s id, passport, etc.
- Id proof- PAN card, Aadhaar card, voter’s id, etc.
- Age proof- Aadhaar card, voter’s id, passport, driving license, etc.
Conclusion
Money back plan simply means that money comes back to the life insured after a specific interval of time as survival benefit. The money back is guaranteed on the survival of the policyholder. However, in case of death of the policyholder, the nominee gets the sum assured and accrued bonuses, if any.
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