Liquidity and Life Insurance

Buying life insurance is a long-term commitment. It is one of the best way to build up a good corpus(fund) by contributing very small portions every year. But, the pay-out of the normal life insurance policy is generally fixed. So, in case of emergency, the normal life insurance policy may not be of help. Yes, it is possible to take loan against the policy but that usually does not solve the issue. A money-back life insurance policy may be the solution to such liquidity crisis. as the policy pays a percentage of the Sum Assured regularly through the plan tenure.

The name itself is self-explanatory, a money-back policy is a policy which gives money-back at regular intervals. This money-back is paid during the plan tenure and is a percentage of the Sum Assured. Money-back pay-outs are called Survival Benefits. These benefits are paid during the plan tenure and on maturity, the remaining Sum Assured is paid along with vested bonuses. However, if the insured dies during the plan tenure, the full Sum Assured is paid irrespective of the Survival Benefits already paid. This the the most unique feature of the policy.

The three main features of the money back policies are as follows:

1. The payments made to the insured during regular intervals (Survival Benefits)

2. Full sum assured paid in case of death of the insured during the tenure irrespective of the money already paid back to the insured

3. Provides the required liquidity and to help the insured plan various activities

These policies are suitable for individuals who want a relatively risk-free avenue for investment by saving through an insurance plan and also maintain liquidity throughout. Such money back policies are specifically designed for people who need cash in hand for their businesses, any other walks of life and to the people who have taken loans from different financial institution.

You can easily plan the type of money back policy you want by assessing your needs regarding the

a. number of years you intend to keep investing in the policy

b. the total sum that you want to insure your life for

c. the frequency of the pay-outs by the life insurance plan

Sanima Life Insurance offers two different money bank life insurance policies, namely,

1. Sanima Dhanapati (Money back Endowment) Life assurance Plan

2. Sanima Barshik Dhanfirta (Annual Money back Endowment) Life Assurance Plan

You can check out the details of the plans at

https://sanimalife.com/product/sanima-dhanapati-money-back-endowment-life-assurance-plan

Nonetheless, do not forget to compare all the different types of life insurance policies and consider your own financial situation and future plans to decide on the type of policy you want to buy.

Be insured. Be stress-free.