Money Back Policy

w.e.f. 01-09-1976

Table 93 (w.e.f. 01-09-1986)

General Policy Conditions

Underwriting Requirements

Policy Servicing

Min. age at entry

13 years

Female lives category

I/II/III

Policy Loan @ 9%

Yes

Max. age at entry

50 years*

Age Proof

Std./NSAP-1/2/3

Housing Loan

Yes

Max. maturity age

75 years

Form No.

300 / 340

Assignment

Yes

Min. Term

20 years

Dating Back @ 8%

Allowed

Revival

Yes

Max. Term

20/25 years

Non-Medical General **

Allowed

Surrender of Policy

Yes

Min. S.A.

Rs. 50,000*

Non-Medical (Professionals) **

Allowed

Survival Benefits

Yes

Max. S.A.

Any amount

Non-Medical (Special) **

Allowed

Term Rider Option

Yes

S.A. in multiples

Rs. 5,000

Risk Coverage

S.A. + Bonus

Critical Illness Rider

Yes

Modes allowed

All

Actual Sum Assured (ASA)

Basic S.A.

Accident Benefit per 1000 S.A.

Re. 1 extra

 *

Maxium age at entry for Table 93-25 years is 45 years and for Table 75-20 is 50 years.

**

 For limits see NMS Article

* Suitability

:

Businessman & Professionals as money available at regular intervals

* Other details

:

(a)

A portion of S.A. viz., Survival Benefit, is paid as a percentage once in every 5 years.

(b)

Life risk cover for the entire sum assured even after payment of survival benefit.

(c)

At the time of first Survival Benefit the Life Assured should have attained majority.

Maturity Benefit

:

Bonus is given for the full sum assured amount.

Death Benefit

:

On death, before the policy term ends, full S.A. + Bonus is paid to nominee. The Survival Benefit already paid, if any, is not deducted in case of death claim.

Following re-investment table gives an idea of the total amount available at the end of the term, if the survival benefits are re-invested at 6% interest compounded annually in Banks/Company Deposits/Mutual Funds/RBI Bonds etc…

Reinvestment Table for Plan 75-20, for 1 Lakh S.A.

Example 1

Survival Benefit

5 Yrs

10 Yrs

15 Yrs

20 Yrs

Mr. Murthy takes a Money Back Policy for 20 years for Rs. 1 Lakh under table 75-20.

Here, he receives Rs. 20,000 each at the end of 5^th, 10^th & 15^th year. On maturity in the 20^th year, he receives balance Rs. 40,000 + Bonus of Rs. 82,000 @ an estimated Rs. 41 per thousand S.A. + Final Additional Bonus of Rs. 2,000. In case, Mr. Murthy dies during 12 th year, his nominee will get Rs. 1,49,200 (Rs. 1,00,000 S.A. + Rs. 49,200 Bonus @ an estimated Rs. 41/- per 1000 S.A.). The survival benefit already paid during 5^th & 10^th year will not be deducted.

I

20,000

26,765

35,817

47,931

II

-

20,000

26,765

35,817

III

-

-

20,000

35,817

Maturity

-

-

-

40,000

Bonus @ Rs. 41 per 1000 S.A.

-

-

-

82,000

FAB @ Rs. 20 per 1000 S.A.

-

-

-

2,000

TOTAL

20,000

46,765

82,582

2,34,513

Example - 2

Reinvestment Table for Plan 93-25, for 1 Lakh S.A.

Mr.  Jagadish trakes a Money Back Policy for 25 years for Rs. 1 Lakh under table 93-25.

Here, Jagadish receives Rs. 15,000 eacj at the emd pf 5^th, 10^th, 15^th & 25^th year. In the 25^th year, he receives balance Rs. 40,000 + Bonus of Rs. 1,12,500 at an estimated Rs. 45 pert 1,000 S.A. + Final Additional Bonus of Rs. 3,500. Totally, Mr. Jagadish will receive Rs. 1,56,000.  The along side table gives an insight for reinvestment.

In case, Mr. Jagadish dies during 12^th year, his nominee will get Rs. 1,54,000 (Rs. 1,00,000 S.A. + Rs. 54,000 Bonus). The survival benefit already paid during 5^th and 10^th year will not be deducted.

Survival Benefit

5 Yrs

10 Yrs

15 Yrs

20 Yrs

25 Yrs

I

15,000

20,073

26,863

35,948

48,107

I

-

15,000

20,073

26,863

35,948

III

-

-

15,000

20,073

26,863

IV

-

-

-

15,000

20,073

Maturity

-

-

-

-

40,000

Bonus @ Rs. 45 per 1000 S.A.

-

-

-

-

1,12,500

FAB @ Rs. 35 per 1000 S.A.

-

-

-

-

3,500

TOTAL

15,000

35,073

61,936

97,884

2,86,991

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