Money Back Plan

It is true that not all of lives events can be anticipated. But to use that as an excuse for not planning is not quite justified. Let's take an example: our plans could be to go on a long trip with our loved ones during the holidays; to supplement our spouse's/parent's efforts to accumulate money for buying a car/house to garner funds for children's education etc.,, and the list goes on. Now what if you haven't planned for these events?

Let's look at a few questions that concern us:

  • What might be a few important things that you might want to add color to your life and that of your loved ones?
  • Can you put a tentative date for these events?
  • What could be the cost involved in making these events happen by taking into consideration the effects of inflation?
  • What have you done to accumulate enough funds for these things?
  • What would you do if you didn't have the required funds at the appropriate time?
  • Have you taken care of the more important need of income protection for your loved ones?
  • If you have not started accumulating for these needs, how much time do you have at your disposal?
  • How much can you set aside on a monthly basis to have enough funds to help you plan for your most desired events?
  • Are you aware of the effect of rising cost of products and services (inflation)?

A nice way to plan in advance

The Money Back Plan form National Life enables one to decide on a term and a predetermined maturity amount after which one is to regularly set aside money (premiums) throughout the term. The company pays the Maturity amount in installments at various predetermined intervals during the term. Bonuses are also paid. Further, if unfortunately the insured were not to survive the term, irrespective of the amounts previously paid out by the company to the client, the beneficiary would still receive the entire maturity amount and the bonuses. The benefits are three fold: sufficient inflow of funds at predetermined times; income protection for loved ones and bonuses to take care of inflation.

  • Cash flows in three times
  • High protection
  • 24 hour world wide cover
  • Bonuses to take care of inflation

What you need to do?

Choose the duration of the plan (the term), the total Sum required at various points through the term (the total of which is called the sum assured) make the decision and start making the contributions (premiums) on a monthly, quarterly, half- early or annual basis.

What you get?

On 1/3d of the term 25% of the sum assured would be given, on 2/3rd of the term, another 25% of the sum assured would be paid and at the end of the term, 50% of the sum assured would be paid along with the bonuses accumulated throughout the duration of the term

In case of an untoward event prior to the completion of the policy term, the sum assured along with all accumulated bonuses would be paid irrespective of the payouts previously taken.

Let's take an example
Suhail is 30 years old. It is 3 years after his marriage. He would like to change his car in another four years, he would like to gift his son Ali a decent amount when he passes his tenth grade (for which there are eight more years). By the time Suhail is 42 (12 years from now) he would like to buy his own house. He would also like to offer protection to his family during this time. So basically Suhail would like to have amounts at the end of the 4th, 8th and 12th year from now. Suhail therefore decides to take a Money Back Plan from National life for RO. 12000/ for a period of 12 years.

Situation A
What are the benefits Ali has assured through this plan?
A: Ali will get the following benefits:

After 4 years RO 3000

Maturity Benefits
After 8 years RO 3000
After 12 years RO 6000 +bonus = RO.4320*

Situation B
Suhail unfortunately passes away after 9 years of the start of the plan.

How does this plan protect the family needs now?
Suhail's family immediately receives the sum assured of RO 12000/-

What happens to the amounts already claimed after the 4th and 8th years?
They are not considered - the entire sum assured of 12000/- is paid to Suhail

Will Suhail's family get any further benefits?
Bonuses for the entire term for which the premiums were paid would be paid to Suhail's beneficiaries.