Learn About the Maturity Benefits Of Money Back Policy
Table of Contents
Up until anything happens that flips everything upside down, it appears like everything is going according to plan. Financial crisis circumstances are the worst. Emergency costs must be covered, and the Money Back Plan gives you and your family financial help. A money back plan allows you to pay premiums to increase the value of the sum insured while also providing you with a proportion of the sum insured at certain intervals throughout the policy term. Maturity benefit is one of the best advantages of a money back plan and has been described in detail ahead.
Maturity Amount of Money Back Plan
It is crucial to talk about the worth of the maturity sum that is handed out. The maturity amount is the main component of a policy plan, which is the rationale for this. This number surpasses the amount of the Survival Benefits by a wide margin. Calculating the Premium Amount is another reason to be aware of the Maturity Amount Value. The simple rule is that the greater the maturity amount, the higher the premium value.
Calculating Maturity Benefit Amount
On completion of the fifth, tenth, and fifteenth years of the policy, the Money Back Plan offers three Money Backs equivalent to 20% of the Sum Assured, and on completion of the policy term (20 years), 40% of the Sum Assured + Reward + FAB is also offered as a maturity amount.
In the event of death within the term of the policy (before 20 years), the nominee will be paid 125% of the sum assured plus any accrued bonuses up until the time of death and any final additional bonuses (if any). If the Accidental Rider is chosen, the nominee will additionally receive the Normal Death claim and an extra sum equal to the Sum Assured in the event of an accidental death.
Other Benefits of Money Back Plan
Apart from maturity benefits, the money back plan also comprises some additional benefits as listed ahead.
1. Survival Benefit
The Survival Benefit, which is provided at Fixed Intervals throughout the Policy Term and represents a Low Percent of the Sum Assured, These Amounts serve as recurring income, ensuring that you have enough back up funds in case of necessity.
2. Death Benefit
Even in the event that the insured individual is not present, the Money Back Plan offers financial assistance. The Sum Assured is provided to the Insured's Nominee as the Death Benefit in the event that the Insured passes away within the policy's term.
Conclusion
When selecting an insurance policy, the maturity amount is crucial. They are crucial in the scenario of Money Back Plans since the aaturity amount determines the amount of the premium you must pay and the survival benefits are calculated as a proportion of the maturity amount. Therefore, the benefits of survival increase as the Maturity Amount increases.
Also read: Who Should Invest in Money Back Plans?
