20 years money back plan is like a normal endowment plan in which the maturity period is for 20 years. This plan is perfect for those who want periodic lump sums along with the maturity benefits and death benefits. Under this plan, the policyholder will get timely survival benefits of 20% of the total basic sum assured on the policy three times. And after the maturity period is completed, the insured will get the rest of the assured sum that is 40%. Under this policy, the holder is also given additional bonuses and participation in profits as decided by the company, only if the insured pays all the premiums on time.
The major benefits that come with this policy plan are:
- Maturity benefit: This benefit is paid at the end of the 20-year term of the plan. If the policyholder has paid all the premiums in total and on time, then the company also pays the additional bonuses including a reversionary bonus and loyalty bonus. In the maturity benefit, one will get 40 percent of the remaining basic assured sum on maturity after paying the survival benefits.
- Death benefits: in the case of the death of the policyholder, the company pays the assured sum of death benefits plus the additional bonuses if applicable. In the case of death benefits, the sum assured is not supposed to be less than 105 percent of premiums that are paid in total. Also, one can add the additional benefits of accidental disability and death in the same plan.
- Survival benefit: Survival benefits are one of the major features of this plan in which the policyholder gets 20 percent of the basic assured sum at regularly gapped intervals. The 20 percent survival benefit is paid at intervals of 5 years, which is in the 5th year, 10th year and 15th
- Accidental death and disability benefit: This benefit is a rider benefit that can be added with additional premiums. Under this, in the case of the death of the insured due to an accident, the nominee gets the assured sum of accidental death. Also, in case of the disability of the insured, then assured sum for disability is also paid in a lump sum and the future premiums are waived off.
- Minimum entry age: 13 years
- Maximum entry age: 50 years
- Term duration: 20 years
- Premium payments: monthly/ quarterly/ half-yearly/ annually
- Basic assured sum: 1 lakhs and above
- Premium payment term: 15 years
- Survival benefits: at year 5, 10 and 15 (20% of the sum assured)