Money-Back Term Insurance

Over the last couple of years, the insurance industry in India has grown exponentially. With many of the companies on the market, the business has managed to explore the potential of the market as well as cater to the requirements of the consumers. However, there have been some let-ups in the past, but with the aggressive approach of the insurance companies, they have carved a unique space for themselves.

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Term Insurance is one such product that assists in planning the future by securing its necessities. 

  • Under the Money Term Insurance, you’re provided certain benefits as well as death coverage. Even though the policy is life insurance, the way it approaches the traditional coverage is different. 

In addition to that, the striking feature that segregates it from the rest of the insurance plans is that it offers you a return of the premium on a term plan. Upon the maturity of the plan, the Money Back Term Insurance will offer you a return of the premiums predetermined at the time of the taking.  The return of the premiums is one of the aspects that sets it apart from the rest of the policies. In addition to that, the policy provides cover in both of the preferences:

  • If you are planning for your future needs – savings and life coverage. 
  • Or securing the future financial obligations of your family in your absence. 

Whatever may be the case, Money Back Term Insurance is a policy that offers you a decent return on your investments, secures your future expenses as well as covers any financial obligation on your family in your absence. Furthermore, the policy is flexible enough to allow you to choose your premiums and decide them according to your position. This entails a diverse insurance plan and a tenure that fits your likes. Finally, the whole process is more convenient where you are spared the hassle of the documentation. 

Eligibility Criteria for Money Back Term Insurance Plans

There is a striking difference between the standard insurance policy and the Moneyback Term Insurance. However, some of the fundamentals remain the same, and whether you’re taking the former or the latter, your need to understand the requirements. The policyholders are required to meet specific criteria to be allowed for the coverage. 

  • This includes legal as well as other aspects of the policy. 

In addition to this, the policy can vary. Having said that, it means that the requirements will be different in every policy. So, it would help if you scanned the policy to understand the demands. 

  • You will need to meet the eligibility criteria in matters of age. It mustn’t exceed the maximum or be below the minimum. 

Furthermore, Money Back Term Insurance is also a contract with the policyholder, which entails that you pay the premiums as per the policy. Failing can lead to the lapse or rendering the policy dormant. However, thanks to the affordable premiums, it is much easier than you would ever think of. 

  1. Maturity

    Money-Back Term Insurance is lucrative insurance that not just offers you investments opportunity but, at the same time, has various other benefits. However, some rules need to be understood before you jump into them. Even though the Money Back Term Insurance offers various kinds of coverage, you will need to take into account your personal preferences. Better planning leads to recognizable benefits. 

    • The Money Back Term Insurance has a tenure of 20 years where a specific sum is paid out as the survival benefit and the remaining when the policy matures. 
  2. Nominee

    The policy benefits will be paid out at the maturity of the plan. In the event the actual holder hasn’t survived the Money Back Term Insurance, the nominee will be given the full benefits. This will render the policy inoperative after that. 

Salient Features of Money Back Term Plans

Life Insurance in the country has grown in the last few decades, and thanks to the internet, truthful information has reached broader masses. With the growing competition, Insurance companies are on their toes to offer services that can cater to a diverse clientele. In this case, they reach out to the new customers and set a new standard to be followed. 

  • Money-Back Term Insurance takes the regular insurance and adds the additional benefits to it. 

Following the approach of regular insurance, it offers a unique investment option for the policyholders. 

  1. Coverage

    This is the first factor that comes to mind when you mention the features of Money Back Term Insurance. Investing is a lucrative business, but when that is low-risk with a potential of better actuality, the issue becomes more appealable. Money-Back Term Insurance offers you a better opportunity in a matter of investment, and with its low-risk option, it offers you extended coverage for all your needs. 

  2. Survival Benefit

    Compared to the regular term benefits, the Money Back Term Insurance offers you various kinds of benefits that make every penny worth it. In the name of Survival Benefits, the policy ensures that you get regular benefits. However, the total amount will be released upon the maturity of the scheme. The regularity of income is also something that can’t be ignored. 

  3. Survival Benefit

    Irrespective of the sum paid to you under the Survival Benefits, the nominee is entitled to the full benefits of the scheme in the event the policyholder doesn’t survive the maturity. In addition to that, the tax exemption on the premiums and the diversity that you get in choosing the premiums are factors that add more convenience to the policy. 

    • However, the need to emphasize personal preferences is imperative.

     The benefits are innumerable. Though the Money Back Term Insurance is appealable, you will also need to take some time before the final decision can be taken.

Benefits of Money Back Term Insurance Policy

The full potential of the benefits of Money Back Term Insurance depends on how you approach the process of investing. It goes without saying that recklessness or rudimentary research is not the task that is appreciated in investing. Even though you are offered numerous benefits, you must make sure that you do your homework before putting in any money. 

  1. Coverage

    Money-Back Term Insurance not just makes it easy to get the benefits but also at the same time offers you coverage as the policy is intact. This way, you will be entitled to an amount to cover the current expenses. There are also regular benefits that the policy pays you out. Even though the final benefits are released on maturity, the regular payments are a boon that you will not overlook. 

  2. Investment

    In addition to the coverage, it also works as a means of investment. Having said that, it means you can use it as a type of investment that pays you a good amount of money. Compared to other kinds of investments such as mutual funds, it’s considered less risky while offering you the same benefits. IN this way, you are investing in a market that is known for its lucrativeness. 

  3. Savings

    This is one of the factors that also add a type of regularity to it. Adding the benefits and the option of being a savings account, you’re assured of a regular income. To cater to your requirements, the Money Back Term Insurance offers you a diversity in the premiums you can choose. 

    • Deciding on the premiums and the tenure depending on your financial capacity, you can use the Money Back Term Insurance for regular income, investments, and long-term savings. 

    In addition to that, the amounts are regular, and there is no discrepancy. In addition to all this, you are also offered a benefit, even if that may extend the maturity. The nominee is entitled to the total amount in case of the non-survival of the policyholder.

The Process to Purchase the Plans 

There are dos and don’ts in everything you do in your life, and insurance is not alien to it. Given the investment factor, the issue becomes more serious. So, if you’re looking for investing or buying Money Back Term Insurance, you will need to dwell deep. 

  1. Policy

    The first step you should do is to make sure that you are well informed about the policy's tenure. Primarily, it extends to 20 years in duration. 

  2. Survival Benefits

    There are survival benefits attached to every Money Back Term Insurance, so the task is to understand the percentage that will be paid out as Survival Benefits. This way, you will be able to ascertain whether your expenses will be covered or not. In addition to that, the policies have different rules regarding the duration of the Survival Benefits. In this case, it’s imperative to understand how the benefits will be paid out and after how much time. The timeline of the benefits will assist you in predicting future needs. Finally, even though most of the policies offer you a tax benefit on the Survival Benefits, you must see whether the one that you’re taking does so. 

  3. Offline

    Once you’ve decided to buy the Money Back Term Insurance, the next step is to visit your nearest bank branch. Information is crucial, and this can be done by the bank who shall be able to provide you with the things you need. 

  4. Online

    However, the most preferred option is to head to particular Money Back Term Insurance's website. For example, if the policy is SBI Life- Smart Money Back Gold, then you have to log into the SBI website. Once you are on the site, make sure that you keep your legal documents handy. This is to avoid any errors in filling in the information. 

    • You have to fill in the policy-related options such as the tenure, premium, or sum assured on the site.

    In addition to that, make sure that your personal information is accurate. 

Documents Required

Documentation is the gateway for the purchase of the policy. For the insurance company to process and verify your information, you will need to produce your legal documents to substantiate your submitted details. These include:

  • Identity Proof. 
  • Proof of Address.
  • Age certificate. 
  • Application Form. 
  • Medical Reports. 

You have to make sure that the documents are updated and the information is clearly visible on the records. You will require any documents that can establish your age, identity, residence, and other records that you have submitted. Some of them can be:

  • Aadhaar Card. 
  • Pan Card. 
  • Birth Certificate. 
  • Electoral Photo Identity Card.
  • Passport.
  • Payslip.
  • Electricity Bill. 

Once the KYC has been done, the documents will be verified, and the Money Back Policy will head to the next step. In this case, once again, it’s noteworthy to mention that you should be careful in filling in the information. A small error can render the whole policy inoperative. In addition to that, make sure you have all the necessary documents to verify the information.

You will also require the photographs and the form that will legalise the process. With proper documentation that will establish your identity, the process for applying for Money Back Term Insurance is as convenient as you can imagine. 

Additional Features

Money-Back Term Insurance has its rules and regulations. However, the insurance company will also take care of your preferences. This can vary from person to person. In this matter, you are offered the option of the addition of extended services that are not part of the original policy. It can include coverage of various unfortunate events of life. These can be:

  • Accidental Death. 
  • Hospitalization. 
  • Disability. 
  • Critical Illness. 

However, the policy will depend on your policy provider, but the fact that the Money Back Term Insurance offers you to customize the policy is itself a game-changer. 

  1. Accident

    In addition to the coverage, the policy term will offer coverage of the policyholder in case of an accident. In the event of the policyholder's accidental death, the nominee chosen will receive a complete sum in his account. In addition to that, you are also offered the chance of wavering the premium amounts. However, this is only applicable in certain circumstances, and it’s equally important to mention that you will be entitled to the full benefits of Money-back Term Insurance. 

  2. Illness

    Compared to various other insurance policies, Money Back Term Insurance offers better coverage in case of the terminal illness of the policyholder. The policy provides monetary assistance if you are diagnosed with any of the illnesses. 

  3. Hospitalization

    In the event where the policyholder has been hospitalized and is in need of assistance, the policy will pay his bills. In addition to that, there is the provision of the daily allowance and covering all the other daily and regular expenses of the hospital. 

Terms and Conditions

Though there are no stricter rules, one needs to keep in mind how the policy works to avoid any confusion. Since the central component of the Money Back Term Insurance is an investment, what best can be to ascertain the better ways of it. The first and foremost is to understand and remember the rules. 

  1. In case of Death

    The Money Back Term Insurance is a lucrative type of investment that provides coverage and makes sure that you are covered in various aspects of life. However, just in case of the policyholder's death, the nominee will be entitled to the total amount after the due verification. This way, it not just takes care while the policyholder is alive, but at the same time ensures that no financial burden is passed to your loved ones. 

  2. Survival Benefits

    This is one of the most critical factors in the Money Back Term Policy. This is the assured sum that the policy provider offers to you after an interval of time. However, your task is to ensure the percentage of sum and its duration that is offered to you. Having said that, the Survival Benefits will vary from company to company. So, it becomes essential that you agree to the benefits. 

  3. Additional Benefits: 

    The Money Back Term Insurance offers you extended coverage with a bit of customization of your plan. 

    • Depending on your preferences, you can stretch the plan to cover accidental death, hospitalization, disability, or terminal illness. 

    It will also cover your daily expenses just in case you’re hospitalized. 

  4. Premiums:

    The Money Back Term Insurance is flexible enough to allow you the range of premiums. You can decide to either pay it yearly or half-yearly. If that doesn’t fit in your preferences, then there is quarterly as well as monthly. With diversity in the paying options, it sure does appeal to a broader range of people. 

  5. Documentation

    This is one of the most important processes involved in purchasing the policy. The benefits of Money Back Term Insurance can only be enjoyed when your documentation has been verified. This may take a while, but it can be faster than you can imagine, thanks to the KYC. Once you put in the premium, the Money Back Term Insurance will cover you. 

Key Exclusions

The Money Back Term Insurance doesn’t apply to certain events such as:

  • Specific illness or terminal. 
  • Disability. 
  • Prolonged Hospitalisation.

However, with additional benefits, these can be added to the plan, and the policy term will start covering it. In addition to that, any self-inflicted injury will not be covered. Finally, it’s important to mention to you that the policy rules can vary, so take some time to understand the rules.

FAQ's

  • Q1. Are the taxes levied on the amount that I receive?

    A1. Even though the Money Back Term Insurance allows tax benefits, it can be in some instances or exceeding a certain percentage, so it would be wise to read the policy documents carefully. 
  • Q2. What would I do if I didn’t pay my premium on time?

    A2. In any event, where the premium isn’t paid on time, the account allows for a grace period depending on the type of the premium. However, if the amount isn’t paid within the grace period, the policy will terminate. 
  • Q3. Can the policy be revived?

    A3. Revival of the policy is possible. However, this will depend on the date of your last premium. You are allowed to revive the policy given that the two years haven’t passed since the date of your last premium. 
  • Q4. Can the policy be transferred?

    A4. This, as of now, isn’t possible. However, you can terminate the Money Back Insurance policy. There are no restrictions on that. 
  • Q5. Will I receive a surrender value on surrendering my policy?

    A5. You can surrender a policy after paying premiums for three years. This will attach a value that will depend on your premiums and tenure. 
  • Q6. What documents will I require?

    A6. You will require any of the documents that can establish your identity, residence, and tax credibility. However, you will also need to fill in the application to formalize the request. 
  • Q7. How much will I receive in the Survival Benefits?

    A7. This varies from policy provider to provider. Usually, it’s 20% in instalments. However, the provider can have different rules. So, in that case, you will be wise to scan the policy documents very carefully. 
  • Q8. What is the age bar?

    A8. This usually depends on the policy provider as the rules can differ. However, as long as you’re 21, it will be acceptable to all of the providers. 
  • Q9. What is the tenure of the plan?

    A9. Money-Back Term Insurance offers you a tenure of 20 years. However, there can be an additional extension. It’s equally important to mention that you must check the tenure when signing up. The best factor about the policy is that it allows for customizing the preferences where you’re allowed to design the plan according to your needs. You can also add additional benefits to the plan. 
  • Q10. Are all the Money Back Term Insurance the same?

    A10. No, there are various kinds of schemes, and in addition to that, the benefits vary. 
  • Q11. How can you buy the Money Back Term Insurance?

    A11. You can apply for the plan on the policy provider's site. Once you have filled in the information, the provider will verify and issue the plan. 
  • Q12. What to keep in mind while filling the form?

    A12. Make sure that you keep all your legal documents with you so that there are no errors.
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