Getting insurance cover is necessary to protect you and your family against unfortunate circ*mstances like any critical illness or death. However, what if you could get insurance cover and a prospective investment plan in the same plan and premium you’re paying? A money back policy is an all-inclusive package where you get insurance, payouts at regular intervals and the total amount of maturity benefit.
Now you know how a money back policy has relatively more benefits than standard life insurance, let’s see why else you would need it.
Why Do You Need Money Back Policy
A money back policy is the perfect plan for individuals who want a guaranteed return on their overall investment in the plan. Additionally, a money back plan also provides an amount known as ‘survival benefit’ to the policyholder regularly till the maturity of the money back policy. As the name suggests, the ‘survival benefit’ is the reward you get as a policyholder for surviving.
In case of standard life insurance cover, your family is protected if you occur any unfortunate circ*mstance like a severe illness or, worse, death. While in a money back policy, you get a guaranteed return which is the ‘maturity benefit’ after the plan and matures on top of the survival benefits you have received regularly.
If the policyholder expires before the maturity of the money back plan, the nominee(s)or the beneficiary will receive the lump-sum amount called the ‘death benefit’. Additionally, for more security, you can get other add-ons or riders on the money back policy to receive maximum benefits out of a single investment plan. Also, you get insurance cover for your family in the same plan.
For the individuals who are sceptical about investing due to high-risk and low returns, this is an ideal plan where you and your family are protected and have an alternate source of income through this plan. Term life insurance policies cannot hold a candle to the money back plan as the insured individual does not only receive benefits after their demise, unlike a life insurance cover.
According to Trading Economics, the unemployment rate in India reached its peak at 23.50% in April 2024. It was due to the impact of the pandemic that led to such a terrible situation for which a lot of people suffered financially. In order to avoid sudden financial setbacks due to unemployment or loss in business, a money back plan can act as a crucial alternative source of income when you’re trying to get back up on your feet during times of crisis.
Eligibility for Money Back Policy
- Depending on which policy you are applying for, the policyholder has to be under the maximum age and above the minimum age as required by the policy provider.
- The policy has guidelines as per which you must be able to pay the assured sum timely.
Key Features of Money Back Policy
Low-Risk Investment Option
Individuals looking to secure themselves and their families financially but are hesitant about investing can opt for money back plan. Even if you are not aware of what is investment and how it works, you will get guaranteed returns and other benefits. It is the most secure form of investment that also provides insurance coverage in case of the policyholder’s demise.
Income Source as a Reward
After a few years from the start of the money back policy, the policyholders receive an amount of money called the ‘survival benefit’ every few years as a reward for surviving and taking care of himself/herself. No other plan has such benefits where the policyholder receives anything before the maturity of the plan or their demise.
No Cut-downs on the Maturity Amount
Although the policyholder receives survival benefits every few years until the plan’s maturity, no amount is deducted after the maturity of the money back plan. The policyholder is provided with the same amount that they were assured at the beginning while applying for the money back plan regardless of what they received in the regular survival benefit payouts. This increases the overall payout of the plan.
Benefits of Money Back Policy
Insurance Cover & Return on Investment in the Same Plan
The money back plan offers a guaranteed return on investment, maturity benefit, and survival benefit all in one plan. So by investing in the plan, you step into a low-risk option where you are assured of getting significant returns on the amount you invested along with life insurance cover too. No other insurance and investment policies have as many benefits as this one.
More Secure Than Volatile Market-linked Investment
Stock markets and Cryptocurrency, though prospective, are highly volatile markets and even the wisest investments are sometimes not safe enough. The money back policy protects against the loss of investment by offering guaranteed returns that other investment plans cannot provide.
Chris Mcdonald has been the lead news writer at complete connection. His passion for helping people in all aspects of online marketing flows through in the expert industry coverage he provides. Chris is also an author of tech blog Area19delegate. He likes spending his time with family, studying martial arts and plucking fat bass guitar strings.
FAQs
Whenever possible, the FTC uses the money it collects from defendants to provide refunds to injured consumers. If there is any money left in the settlement fund after the first distribution, the FTC may send a second round of payments. The FTC sends money that cannot be distributed to consumers to the U.S. Treasury.
What is the cash value of a $100,000 life insurance policy? ›
However, most people receive around 20% of the face value on average, according to LISA. So, if we're using that 20% average to calculate the cash value of a $100,000 life insurance policy, the cash value of the policy would be $20,000.
How much money can you borrow from your life insurance policy? ›
The amount you can borrow depends on the cash value of the policy. Typically, the insurer will let you borrow up to 90% of the cash value. However, in some cases, they might allow you to borrow up to 100% of the cash value. Check your policy and talk with your life insurance agent to determine how much you can borrow.
How do I know if my life insurance has cash value? ›
You will typically find it listed separately in your life insurance statements. The net cash value will generally be lower than your total accumulated cash value for the first several years of coverage, as it's reduced by fees and surrender charges.
How much are the FTC checks? ›
In addition, the FTC sometimes imposes a minimum check amount that excludes some consumers who otherwise would have been eligible. In general, the FTC does not mail checks of less than $10. In 2022, the FTC sent additional payments totaling more than $193 million dollars to consumers in 26 different FTC cases.
Is my refund check legit? ›
So, what should you look for if you're concerned your refund check isn't real? All U.S. Treasury checks have a watermark that reads “U.S. Treasury” which can be seen on the front and back of the check when held up to light. If you can see “U.S. Treasury” without holding up the check to the light, it may be fraudulent.
What is the cash value of a $25,000 life insurance policy? ›
Examples of Cash Value Life Insurance
An example is a cash value life insurance policy with a $25,000 death benefit. Assuming you don't take out a loan or withdraw, the cash value accumulates to $5,000. After the policyholder's death, the insurance company would pay out the full death benefit, which would be $25,000.
What is the cash value of a $30,000 life insurance policy? ›
For example, your life insurance policy has a balance of $30,000. The surrender fees on the policy are $5,000. The total cash value amount is $30,000, but if you surrender the policy, you receive $25,000. That makes the cash surrender value $25,000.
Can you cash out life insurance before death? ›
Permanent life insurance, such as universal and whole life policies, comes with a death benefit and a cash value account that you may can cash out while you're still living.
Is it smart to borrow against life insurance policy? ›
Borrowing against life insurance can be a good option for those looking for a loan with low-interest rates, flexible repayment terms and no credit check. However, it also comes with downsides like a reduced death benefit, risk of policy lapse and significant interest accumulation.
How long does it take to build cash value on life insurance? The length of time varies by insurer, but in most cases, cash value does not start to accrue until you have paid premiums for two to five years.
Why doesn't my life insurance have cash value? ›
Term life has no cash value: you pay premiums for, say, ten or 20 years, and after the term is over, you generally get nothing back. Furthermore, you're no longer protected once the term ends (and if you want to continue protection, you need to reapply for coverage, typically at a significantly higher cost).
What is the disadvantage of life insurance with cash value? ›
Some policies take a long time to build up any significant cash value. You could wait many years before you have a substantial amount to access. Cash value is not paid to beneficiaries in most cases. When you pass away, cash value typically reverts back to the life insurance company.
Which type of life insurance policy generates immediate cash value? ›
Single premium whole or universal life insurance policies are the types that generate immediate cash value. However, you can also secure immediate life insurance coverage with a no exam term or whole life insurance policy.
How do I know if my FTC is real? ›
The FTC will never demand money or personal information from you. The FTC will never threaten to arrest, deport, or punish you. The FTC does not give awards or grants and does not conduct sweepstakes or lotteries. Only scammers will demand that you pay by gift card, cryptocurrency, money transfer, or cash.
How much are the refund checks from FTC vs AMG? ›
Case Summary. The Federal Trade Commission, working jointly with the U.S. Department of Justice, is mailing 1,179,803 refund checks totaling more than $505 million to people who were deceived by a massive payday lending scheme operated by AMG Services, Inc.
Is the FTC vs AMG refund check legit? ›
Use this tool to confirm that your AMG refund check is from the FTC. If you have questions about your check, call 1-866-730-8147. The FTC and the Department of Justice (DOJ) are mailing a second round of checks to more than 690,000 people who were overcharged for online payday loans.
Is the FTC website legit? ›
ReportFraud.ftc.gov. A .gov website belongs to an official government organization in the United States.
