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Here’s Why Green Businesses Should Offer Life Insurance Policies

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Running an ethical business is a difficult endeavor. You need to focus on creating sustainable products and services, which is something that we have covered in depth throughout this site. However, you also need to consider other moral obligations, such as those to your employees.

When you are considering how to create a green business, you need to make sure that you offer the right insurance policies to them. Around 50% of businesses offer health insurance. However, green businesses tend to be smaller startups, so they often neglect to offer the health insurance policies that their employees may need. Far fewer offer life insurance policies.

You should seriously considering offering them. Of course, you need to understand the benefits of being frugal while operating a green business. But you should also invest in things that help your employees. There are a lot of benefits, which your employees will appreciate.

What Are the Benefits of Offering Life Insurance as a Green Entrepreneur?

Green business owners need to seriously consider the benefits of offering life insurance. You should look at it as an investment in your employees, not just another expense.

Purchasing a life insurance policy is a part of your long-term financial planning that will help you in different stages of your life. It is designed to provide you with a life cover and help you meet your unforeseen financial needs in times of crisis. In a nutshell, a life insurance policy is a sound financial investment to cater to your long-term goals primarily like building a house, education, and marriage of your children, buying a car covering your health needs and ensuring a comfortable retired life. In all this, if you happen to meet with unfortunate death, the life cover protects your family from financial ruin.

Weigh your options:

Green companies tend to be newer, which means they have less money. This means that you can’t afford to waste money on poor products and services. You need to do your due diligence before choosing a life insurance policy.

Buying a traditional life insurance policy is what you would generally think of when you decide on a long-term perspective to create an assured hefty corpus. Long before the tenure of your policy is complete, you may be beset with liquidity problems. A traditional policy would be of no help as the funds would be available to you only on maturity and your immediate requirements will go unmet. Herein comes a plan to your rescue, which apart from providing the usual benefits of an insurance policy, provides you with a proportionate ratio of your assured sum at regular intervals during the period of the policy, alleviating your emergent liquidity needs. This is called a Money Back Policy.

Understanding Money Back Policy:

In a Money back Policy, you are paid out an agreed upon the proportion of the assured final sum at regular intervals during the currency of the policy. These proportionate payments are a part of the survival benefits. The remaining amount of assured sum left after such periodic payouts are paid on maturity of the policy along with accrued bonuses as the terminal payment.

Your nominee will receive the entire amount of agreed sum assured, irrespective of the survival benefits already paid to you, in the event of your untimely and unfortunate death during the tenure of the policy term, As the name suggests, you receive survival benefits as payout, yet enjoy life protection in case of any eventuality. It is this feature that makes it unique. The significant points of the Money Back Policy to be noted by you are:

  • A percentage of your sum assured. is termed as survival benefit
  • Survival benefits are paid at regular, fixed intervals during the plan period.
  • The pay-out structure varies from plan to plan as also the period of fixed intervals.
  • The residual sum assured is paid when the policy matures. Employees working at green companies may not get paid a lot for a salary, so this can be a huge benefit.
  • It is a participating plan where the bonus is added and paid on death or maturity.
  • In case of death, the entire sum assured is paid to the beneficiary irrespective of the pay-outs already made.
  • Additional rider facility is available in Money Back Policy.  This is a great benefit for green business owners.

Money Back Policy – your necessity:

As a green business owner, the key feature of your Money Back Policy is that you are provided with funds at regular intervals during the tenure of the term. Though a savings plan, the pay-outs help you overcome your periodic financial needs over the entire term period. You get survival and maturity benefit along with vested bonus and a continuing life cover. It is designed in such a way that you can use a corpus every few years to fund your business needs, your children’s education and other emergent situations. It is one of the best and reliable life insurance savings plans.

Important features of a Money Back Policy:

The uncertainties of your life are best secured by your purchase of a plan with the money-back feature. The major takeaways in this plan are:

  • Provision of survival benefits.
  • Assured liquidity during the tenure of the policy term. It helps you to plan your life goals more efficiently with the availability of funds at regular intervals.
  • It provides you with risk-free returns.
  • You enjoy a low-risk savings facility along with a life cover.
  • It assures you a regular income to enable to plan your fund allocation in the best interest of your family.
  • In the event of your unfortunate demise, your nominee is benefited with the entire sum assured irrespective of the pay-outs you have already enjoyed.

Tips to choose Money Back Policy:

As a green company, how do you choose a Money Back Policy that meets your specific needs? With a plethora of money back plans in the market, you are spoilt for choice to buy a plan that suits your needs best. Various insurers have a bouquet of plans that offer plans to suit individual needs. The factors that weigh to choose the best for you depend on:

  • Your financial goals.
  • Your present capacity to invest in a Money Back Plan.
  • The projected period of the term for investment.
  • The plan of pay-outs that will suit you best.
  • The period you want to stay invested.

Advantages of online purchase of a Money Back Policy:

The online facility offered by various Insurance service providers gives you an option to choose the right product in the quickest way possible. Other sites allow you to compare various plans that meet your needs to the best possible detail to enable you to arrive at an informed decision. The features of the easy comparison tools give you the opportunity to compare premiums, features of the plans, inclusions, exclusions, and most importantly pay-out options. However, the key points that green businesses need to keep in mind before making a purchase are:

  • The number of years to stay invested.
  • The guaranteed maturity benefit is matching your financial needs.
  • The pay-out pattern during the plan duration.

Eligibility – Money Back Policy:

The basic criterion for purchasing a Money Back Policy is:

  • Qualify for the entry age.
  • Adhere to the maximum age limit for the tenure of the policy.
  • Stick to the premium terms and mode.

The documents required for buying a Money Back Policy are:

  • Identity proof: The valid documents for ascertaining one’s identity are Aadhaar Card, PAN Card, EPIC, etc.
  • Address proof: The valid address proof documents are Driving License, Aadhaar Card, EPIC, Passport, etc.
  • Age proof: The age can be ascertained from valid documents like Aadhaar Card, EPIC, Passport, Driving License, etc.

Best Money Back Policies in the market:

There is an array of Money Back plans available in the market. Green businesses need to be savvy about investing in them, because there is a long-term commitment. You don’t want to tie up cash in a bad policy that hurts your employees. This will go against them. The features of the best plans on offer are:

  • LIC Money Back Policy – 20 years:
  • Plan Type: best endowment policy with money back.
  • Policy term: 20 years.
  • Minimum Entry Age: 13 years.
  • Maximum entry age: 50 years.
  • Maturity age:70 years.
  • Minimum sum assured: Rs. 1 lakh.
  • Bajaj Allianz Cash Assure:
  • Plan Type: A traditional money back plan.
  • Policy term: 16 years, 20 years, 24 years and 28 years.
  • Minimum Entry Age: 0 years.
  • Maximum entry age: 54 years.
  • Maturity age: 18 to 70 years.
  • Minimum sum assured: Rs. 1 lakh.
  • SBI Life Money Back Gold:
  • Plan Type: A savings plan.
  • Policy term: 12 years, 15 years, 20 years and 25 years.
  • Minimum Entry age: 14 and 15 years.
  • Maximum entry age: 55 years.
  • Maturity age: 27 to 70 years.
  • Minimum sum assured: Rs. 75 thousand.
  • Aegon Regular Money Back Insurance Plan:
  • Plan Type: Money back plans with coverage.
  • Policy term: 20 years.
  • Minimum Entry age: 7 days.
  • Maximum entry age: 55 and 60 years.
  • Maturity age: 75 and to 80 years.
  • Minimum sum assured: underwritten amount.
  • Reliance Super Money Back Plan:
  • Plan Type: A non-linked, non-participating, non-variable plan with coverage.
  • Policy term: 10 years, 20 years, 30 years, 40 years and 50 years.
  • Minimum Entry Age: 18 years.
  • Maximum entry age: 55 years.
  • Maturity age: 28 to 80 years.
  • Minimum sum assured: Rs. 1 lakh.
  • LIC Money Back Policy for Children:
  • Plan Type: A child plan.
  • Policy term: 25 years.
  • Minimum Entry Age: 0 years.
  • Maximum entry age: 25 years.
  • Maturity age: 25 years.
  • Minimum sum assured: Rs. 1 lakh.
  • Canara HSBC OBC Smart Stage Money Back Plan:
  • Plan Type: A traditional money back life insurance plan.
  • Policy term: 15 years.
  • Minimum Entry Age: 8 years.
  • Maximum entry age: 55 years.
  • Maturity age: 70 years.
  • Minimum sum assured: Rs. 1 lakh.

Benefits of Money Back Policy:

Green business owners should seriously consider buying life insurance policies with money back guarantees. The key benefits of Money Back Policy are:

  • Survival Benefits: During the lifetime of the policy, you are paid money as pay-out every few years in fived specific intervals. On maturity, the remainder of sum assured is paid to you along with an accrued bonus.
  • Death Benefits: In the sad event of your death, your nominee is paid the sum assured with an accumulated bonus.
  • Maturity Benefit: On maturity of your plan, you are paid the final payment comprising of three components:
  • Sum Assured: It is the total cover chosen by you at the start of your policy.
  • Bonus: The accumulated reversionary bonuses declared by the company.

Green Businesses Must Appreciate the Benefits of Life Insurance Policies

When you are running a green business, there are a lot of factors that you need to keep in mind. Providing good insurance for your employees is one thing that you should seriously consider.

The Money Back Policy is an attractive plan designed to benefit you in more ways than one, providing with the flexibility of fund usage. Though it is saving type of plan, the facility of periodic pay-out and other features like life coverage makes it a coveted policy to buy.

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