Survival benefit is calculated as a percentage of the sum assured.
Money back policies are life insurance plans that return a part of the sum assured to the policyholder as a lump sum at regular intervals. Instead of paying a lump sum sum at once, a fixed percentage of the sum assured is returned in money back plans at intervals.
These are endowment plans that have the benefit of liquidity attached to them. The payouts of a money back policy are called survival benefits. These payouts are given during the policy term and on maturity.
How is survival benefit calculated
Survival benefit is calculated as a percentage of the sum assured. Survival benefit is paid intermittently during the plan period. Every MoneyBank plan has a different pay-out structure. Sum assured also varies for each plan.
What happens when the policyholder dies during the term of the money back plan.
If the policyholder dies during the term of the money back plan, the entire sum assured is given to the nominee irrespective of the amount of money back benefits already paid. Bonuses are also given to the policyholder in the money back plan.
Benefits of Money Back Plan
Now you can think what are the benefits of money back plan. Money back policies give survival benefit. They give death benefit. They give maturity benefit.
They also give bonus along with sum assured. However, bonus depends on the performance of the insurance company. All these factors should be considered while taking any money back policy.
How to choose
Like many other ways of investing, there are many types of money-back policies available in the market. So, when choosing them, first of all focus on your financial goals and choose the policy accordingly. Also compare it with other money-back policies.