Life insurance policies come in many different variants and each variant is meant to fulfil a particular financial need. SBI Life, a leading private life insurance company, also offers all the variety of life insurance plans needed by individuals. Interested customers can find every type of insurance plan with SBI Life. Money back plans are a popular type of life insurance plan which is offered by SBI Life. Let’s understand what money back plans mean, their features and the plans offered by SBI Life in this
Money back plans are traditional insurance plans which create a guaranteed saving. These plans are like endowment plans but they promise liquidity. The sum assured under money back plans is paid in instalments at periodic intervals during the term of the policy if the insured is alive. This payment of sum assured is called money back and the benefits are called survival benefits. On maturity, the remaining sum assured is paid. However, if the insured dies during the policy tenure, the full death benefit is paid irrespective of the money back benefits which have already been paid. Thus, money back plans promise liquidity during the policy tenure without compromising on the coverage.
Money back plans have the following salient features –
SBI Life offers three kinds of money back insurance plans which are discussed below –
In case of death, 100% of the sum assured would be payable irrespective of 60% of the sum assured which has already been paid as money back benefits.
The grace period is the additional period allowed for paying outstanding premiums after the premium due date.
If the premiums are unpaid even after the grace period, the money back benefits would be reduced in the proportion of the reduced paid-up sum assured.
Yes, the survival benefits which are paid do not attract any tax and are completely tax-free.
SBI Life Money Back Plans