Life Insurance
Module Units
- 1. Introduction
- 2. Why Is Life Insurance Necessary?
- 3. Who Needs Life Insurance?
- 4. Definition Of Risk
- 5. Classification Of Risk
- 6. Insurable Risk
- 7. Features Of Life Insurance Contracts
- 8. Life Insurance –Required Cover
- 9. What Should Be The Duration Of Your Policy?
- 10. How Much Cover Is Needed?
- 11. Life Insurance Plans & Riders
- 12. Term Plan
- 13. Whole Life Insurance
- 14. Endowment Life Insurance
- 15. Money Back Policy
- 16. Children’s Policy
- 17. Pension And Annuities
- 18. Need For Pension And Annuities
- 19. Unit-Linked Insurance Plans (ULIPs)
- 20. Types Of Unit-Linked Insurance Plans (ULIPs)
- 21. Charges, Fees And Deductions In ULIP
- 22. How Much Of The Premium Is Used To Purchase Units Of ULIP?
- 23. Pradhan Mantri Jyoti Bima Yojna (PMJJBY)
- 24. What Is A Rider?
- 25. Insurance Regulatory And Development Authority Of India (IRDAI)
- 26. Policyholders Interest Regulations, 2002
- 27. Rules Regarding Policyholders’ Servicing
- 28. Grievance Redressal Mechanism
- 29. Must Know Concept And Terms Part 1
- 30. Must Know Concept And Terms Part 2
- 31. Practical Matters
- 32. Accumulation / Payout Stage
- 33. When Should You Exit A Life Insurance Policy You Don’t Need Anymore?
- 34. When You Should Hold On To The Policy?
- 35. Conclusion
Money Back Policy
What is a Money Back Policy? Explain its features.
A variant of Endowment policy is money back policy. These policies are designed to provide sums required as anticipated expenses over a stipulated period of time. Mainly they are marketed by companies as products providing money at major milestones in the life of the assured.
These types of plans work by returning a certain percent of the sum assured to the insured person periodically as survival benefit. Usually, in a 25 year policy, you can expect survival benefit payment at an interval of every 5 years.
The premium is payable for the term chosen by the policyholder.
You can choose with bonus option or without bonus option right at the inception of the policy. Premium is higher in the case of a bonus option.
If the insured survives till the expiry of maturity date of the policy, the survival benefits are deducted from the maturity value,i.e, the balance amount is paid as maturity value.
The life of the policyholder is covered for the full sum assured during the term of the policy irrespective of the survival benefits paid.
Here also the premium is high and these plans return very low,i.e, 3 % to 5 % because they also combine insurance with investments and they invest your premium in the debt market.
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