What is a Money Back Policy?
A life insurance policy offers life cover to the person who purchases it i.e. a person pays certain amounts of money consistently towards a policy so that his/her family member, known as the beneficiary, is given the sum of money promised when the policyholder expires.
A money back plan is a type of life insurance plan that allows the policyholder to receive payouts at regular intervals during the policy term as part of the survival benefit. Insurance companies offer a survival benefit as a reward for survival. While this benefit is availed at the end of the policy term in most life insurance policy types, the money back policy has the unique feature of providing regular payouts during the policy tenure, to the policyholder.
A money back policy iinstallmentsent plan that gives you some part of the maturity benefit in regular instalments before the scheme period ends. The policyholder will receive regular payouts as long as he or she is alive, instead of a single lump sum at the end of the policy period or at death. However, once the death benefit payout is done or the maturity is reached, no further payments will be made through the policy. It is an investment-cum-insurance scheme which also has the advantage of liquidity after a few years. Money back policy is known as an Anticipated Endowment Plan in insurance parlance.
Why Do You Need to Buy a Money Back Policy?
Money Back plan is a type of saving plan. Here, you get survival benefit along with maturity benefit and bonus (if any).
The reason why money back policy is important is that it provides funds on regular intervals after a certain period of time till the end of the policy term.
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There’s no problem when everything is going smooth. It’s when things suddenly take turn and you are financially blown. You may want to build a corpus for your growth and prosperity. There can be number of reasons, for you to build funds such as investing in your business in every few years, child’s