by Animesh p
Published Sun, May 21st 2017, 18:47 | Advertising
When talking about Money Back Policy with cash value it means a Money Back Policy that builds cash value, and this cash value we can withdraw when in time of need.
This form of cash value Money Back Policy is whole life; this policy is designed to provide the buyer with interest. It is just like a reward given to the policy holder in return for their premium.
Make your money return
One of the attractive things of Money Back Policy with cash value is that the premiums you pay will be returned. The Money Back Policy company will calculate the amount you paid and convert it into cash value. This cash value can pay the premium for the policy holder if he is late for payment, instead of letting the policy lapse. But when the cash value is used up the policy holder has to resume the premium or else this time his policy will lapse.
Withdrawal of cash value
The policy holder can withdraw the cash value if he needs money, it is just like putting money in the bank, but the bank would not give you any coverage. Therefore to own a whole Money Back Policy is not only to have coverage and security, the buyer can have saving as well and he also provides protection for his family and the loved ones. But of course, we don't spend all our money on Money Back Policy. How much coverage you need will depend on how much your responsibilities are, how many children you have and how much your monthly income is.
Some insurance companies and experts can give you recommendations on how much coverage you need. Some say ten times of your annual income, but you can consult them and make your decision.
Money Back Policy with no cash value
Term Money Back Policy is a policy that has the cheapest premium because it carries no cash value; it provides you only coverage, upon the maturity of the policy the buyer receives no return of his money for premium paid. The term or period is the time frame of the policy, when the policy holder has completed paying the premium of the term stated the policy is said to have matured, the buyer has no more coverage and no cash back.
Money Back Policy is just like renting a house, when the tenant ceased to continue to rent he has to move out from the house and no money will be refunded. This policy is recommended to those who want only coverage with low premium, and no saving at all.
For most people would like to have their money back after years of payments, this is usual because we want to make our money worth paying, we want to have coverage, we want to have compensations for losses, but we are not greedy.
Source:- http://bit.ly/2rtqhww