Who Is Eligible To Buy A MoneyBack Plan?

Money-back plans are commonly recommended when it comes to investing money and saving for the future while also receiving financial help to achieve short-term or pre-planned goals. These plans offer a variety of advantages and combine insurance with savings to get the best of both worlds. Liquidity is the biggest benefit or advantage given by money-back programs. Money-back plans payout monthly and safeguards your life while also assisting the family of the life guaranteed financially not only while they are alive but also when they die away. Before you invest in a plan to save and increase your money, you should think about the eligibility requirements for purchasing the plan. There are several conditions that you must be able to meet to invest in a money-back plan. Age and income are two of the qualifying requirements.

Eligibility Criteria for Purchasing Money-Back Plans

The difference between a standard insurance policy and Money Back policy is substantial. Some concepts, however, remain the same, and you must understand the criteria whether you select the former or the latter. Policyholders must meet specific conditions to be covered.

1. Age of Entry

The first criteria used to determine eligibility is the age of the life guaranteed. The buyer must be an American Indian. They must work like employees and be paid consistently. You must be at least 21 years old and no more than 60 years old to enter. The maximum age for entry is raised to 65 years if the life guaranteed is self-employed. Other insurance companies require customers to be at least 13 years old and allow them to buy until they reach the age of 50.

2. Income

Another thing to think about is the customer's financial situation. The policyholder must be able to pay the Sum Assured under the conditions of the policy. If the buyer is an employee, their annual compensation must be greater than Rs. 25,000, and if they are self-employed, their annual income tax return must be greater than Rs. 6 lakh. In other insurance firms, on the other hand, The buyer must be at least 13 years old and can legally buy until they are 50 years old.

3. Documents

The paperwork serves as the starting point for obtaining the policy. For the insurance provider to process and validate your information, you must show your legal documents to corroborate your provided facts. Aside from your age and income, you'll need to provide the following papers to your insurer:

• Verification of age
• Verification of the address
• Duly filled application form
• Medical records, if any, 

Conclusion

Liquidity is the most significant benefit or advantage given by money-back schemes. Money-back plans payout every month, give security for your life, and help the family of the life assured financially not only while they are alive, but also after they have passed away. Before you invest in a plan to save and grow your money, you should consider the plan's eligibility requirements. Moreover, different insurance companies have different criteria. Age and wealth are the two most critical factors. You will need to provide the insurer with a few verification papers before acquiring the insurance.

Also read - Understanding Money Back Policy With An Example

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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.