Similar to normal endowment insurance policy wherein the survival benefits are paid at the end of the endowment period, money back policies logically offers for periodic payments of partial survival benefits during the term of the policy, till the policy holder is alive.
Under money back policies, premiums are likely to be paid according to the company’s policy. Premium could be quarterly, half yearly or annually. The premiums for these policies are further paid for the mentioned period of years, or till death, whichever be the first.
Adopting such policies one can gain income at regular level rather than the risk cover it provides. Along with a lump of bonus on the full sum assured is not a bad bargain.
These plans are cherished with people to whom income at regular period of time is a necessity in summing up to an insurance cover.
The minimum age required to be eligible is 12 years for a Money-Back Policy.
It is a three in one plan that combines savings, liquidity and protection through the following:
- Fixed term of 15 or 20 years.
- Survival benefit payments at regular intervals.
- Premiums are payable throughout the term of the policy.
Minimum sum assured: Rs.75,000.