4 Key Tips That Can Help You Buy the Perfect Money Back Policy
Published On Oct 09, 2021 10:00 AM By InsuranceDekho
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Do you want to save your current earnings? Do you want an insurance plan that not only helps you save, but also enjoy regular returns at regular intervals? If so, a money back policy is the right investment instrument for you. Money back plans come with a unique feature of paying out a specific percentage of the sum assured in a periodic manner.
It may be a crucial step for you to buy a money back policy, but remember, it would be extremely important for you to choose the perfect money back plan. Why? So that you can get the best outcome for your savings.
4 Key Tips That Can Help You Buy the Best Money Back Plan
Do not go for any money back policy that you find. Instead, choose the one that fits your needs to a tee. Moreover, make sure you keep the below mentioned 4 prime tips in mind before investing in a money back policy to make the right decision:
1. Check the Percentage of Survival Benefit
One of the key features of a money back plan is regular payouts, referred to as survival benefit, which is equal to a specific percentage of the sum assured. Survival benefits are a great form of support that can help in preventing financial crises along with the need to spend your entire savings corpus. Make sure you check the percentage of survival benefit before making a final choice.
2. Check the Policy Term
One of the key features of a money back plan is its policy term. When continued for a very long term, money back policies turn out to be extremely helpful. Experts advise that the policy term for a money back plan must be of at least 20 years. What’s more is that since a money back plan has regular payouts, it is not hard to maintain. So, make sure you check the policy term before making a final call.
3. Check the Frequency of Survival Benefits
Make sure you check the frequency of survival benefits as different money back policies pay their survival benefits at different frequencies. Being aware of the survival benefit frequency beforehand will help you make a wise choice on the basis of your requirements to make the most of your plan.
4. Check the Tax Benefits Associated with the Plan
Tax benefits play a significant role in financial planning. Most insurance policies and money back plans come with the same tax benefits. However, some money back plans refuse to offer the tax benefits if the survival benefit is more than 20% of the sum assured.
Now that you know what all to keep in mind before buying a money back policy, make sure you also keep track of all the specific inclusions and exclusions under the policy.
Remember, the right money back policy can help you take care of any expenses in your future through the survival benefits. Always keep in mind that you can buy the right money back policy for the betterment of yourself and your loved ones by being clear of your specific needs and comparing it with the policy you are interested in. Lastly, whichever money back policy you may choose, remember to read the policy documents before investing your money in it.
Also read - Why Do You Need To Buy A Money Back Plan?
Key Features Of A Money Back Policy
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.