Life Insurance

MONEY-BACK PLAN

As the title suggests, this policy is being drawn with the intent of obtaining cashback on a routine basis after a certain amount of time. The money handed back may decrease the quantity insured or may be used as revenue from the quantity invested keeping the percentage insured untouched. Here the amount is paid for the chosen tenure and the money is given back after the end of some years. There may be a range of choices in the Money-back plan:

  • The premium fee is halted after payment for agreed tenure and money begins to be returned to the insured person for the determined period –insurance coverage may or may not be accessible once payment of the premium has been blocked.
  • Premium money is not halted and funds begin to be returned to the insured person for an agreed period –insurance cover stays until the date of maturity. Loyalty or assured bonuses may occur at the time of maturity/death of the insured person.
  • Insurance protection raises each year until the payments are made and declines when the money returns. In this, as well, there may be a loyalty reward or an assured bonus at the end of the maturity period.

ENDOWMENT PLAN

Endowment plan is a long-term saving cum insurance program. Generally speaking, the main target of the plan is to accrue corpus for the family in the event of demise or retirement in the event of maturity. Usually, the money paid at the time of the policyholder’s maturity or demise is much greater owing to the long period of the investment and the constant accumulation of capital per year. These days, there is also an endowment policy with shortened premium payment terms but prolonged life span or maturity terms.