Life Insurance

Money Back

Highlights

A traditional insurance plan pays out a lump Sum Assured in the event of the death of the life insured. The beneficiaries/ dependants/ nominees of the life insured receive a benefit (called a death benefit) if the worst should come to pass for the insurance holder.

A money back insurance plan pays out the same maturity benefits in the form of several guaranteed “survival benefits" which are staggered evenly throughout the course of the policy. So, a money back insurance policy is an endowment plan with the benefit of regular liquidity.

Salient Features

The money back policy has a number of distinct features that set it apart from other life insurance products, as mentioned below:

• Money back plans provide policyholders with low risk investment options as well as insurance coverage.
• The policies provide a regular source of income in the form of ‘Survival Benefits’ for the duration of the policy.
• In the event of the policyholder’s demise during the policy term, the entire Sum Assured is paid out to the nominee irrespective of the amount already paid through the Survival Benefits.
• Provides insurance cover during the policy term.
• Pays out regular benefits throughout the term.
• Works as an insurance policy as well as a long-term investment with good returns.
• Provides tax benefits.
• Less risky than other investments offering similar returns like mutual funds.
• Enables long-term savings and regular income.
• Ensures that amounts are disbursed regularly.
• Some plans extend the insurance coverage guaranteed death benefits even after the maturity date and the last survival period, up to when the life insured attains the age of 100.
• There are optional riders that cover things like specific illnesses, critical illnesses, disabilities, etc.

Riders on Moneyback Policy

A general list of riders that can be purchased along with a money back policy are given below:

Accidental Death Rider

This rider provides coverage in case the policyholder meets with an accidental death as outlines in the rider guidelines. In such a scenario, the policyholder’s beneficiaries/nominees will receive a lump sum as additional benefit.

Term Rider

This rider provides the policyholder with a waiver from paying the premium amount under certain circumstances but still provides coverage to the policyholder.

Critical Illness Rider

This rider provides the policyholder with financial assistance in the event he/she contracts a critical illness as defined by the rider.

Hospitalization Rider

This rider provides the policyholder with assistance in paying hospital bills in the event the policyholder is hospitalized. A daily allowance is issued to the policyholder to cover expenses related to treatment.

Documents Required

The documents required to apply for a money back policy are listed below:

• Proof of age document.
• Proof of address document.
• Application form duly filled in.
• Medical reports (if applicable).

Note : Policy details offered are indicative, not exhaustive. Please contact your nearest Arunaya office for further details.