The twenty year New Money Back policy pays some of your cover before maturity. This can be useful for expenses along the way, but the final payment is therefore different from a plan that keeps all basic cover until the end. Compare the payment schedule, not just the largest figure shown.
One fixed term with three earlier payments
The joining age runs from thirteen to fifty years, and this plan has one fixed policy term. Revised-plan cover starts at two lakh rupees. If you have an older version, check its terms separately rather than assuming that the current starting cover or early closure rules apply to your contract.
The last five years without base premiums
You pay premiums for fifteen years while the policy continues for twenty years, provided all due premiums are paid. The last five years do not need further base premiums, although the maturity payment is still due only at the end. Compare the Twenty Five Years Money Back calculator for a longer payment schedule.
Separate the earlier money from maturity
On five lakh rupees of basic cover, each of the three earlier payments is one lakh rupees. That gives three lakh rupees before maturity, while the base amount at year twenty is two lakh rupees. Eligible bonus money is added separately, so do not count the earlier three lakh again as final maturity.
FAQ
Q: At which years does this twenty year plan return part of the cover?
A: The scheduled payments fall at the ends of years five, ten and fifteen. Each is twenty percent of basic cover under the survival conditions.
Q: Must I keep paying premiums during years sixteen to twenty?
A: No further base premiums are scheduled after fifteen paying years. The policy continues for the remaining five years if all required premiums were paid.
Q: Are earlier twenty percent payouts deducted from the death claim?
A: The death benefit follows its own formula. Earlier survival payments are not deducted from that benefit merely because they were already received.