5 Good Reasons To Purchase a Money-Back Plan
Updated On Aug 24, 2021
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If you want to build a strong financial foundation and a corpus for your future expenses and need financial help to fulfill your short-term goals along with having life insurance, the most widely suggested option for you to cover all of these along with extra benefits is investing in a money back plan.
One of the reasons why you should go for investing in a money back policy is that it provides you with a steady flow of income from time to time to let the life assured meet their expenses at different stages of their life during the policy term when the policy is in full force. This policy is known to provide dual benefits of insurance and investment.
Money back policies provide you with the double advantage of insurance and investment. Along with providing you life coverage, they invest a part of premiums in the market. You also have the chance of saving for your future goals while ensuring the safety of your family after you are gone with a money back policy.
A benefit to address here is investing in money back plans is less risky compared to other investment instruments. They invest in cash bonds and securities which are not affected by market fluctuations. Investing in a money back policy is relatively safer for all these reasons. To understand more about these plans, keep reading!
5 Good Reasons To Purchase A Money Back Plan
Following are some key reasons considering which you can think of investing your money in a money-back plan -
A money back plan pays you a portion of the sum assured from time to time during the policy term when the policy is in full force. If you make it through the entire duration of the policy term, you will be eligible for maturity benefits as well as any incentives that you may be eligible for.
You can also be able to claim incentives and tax deductions under Section 80C of the Income Tax Act of 1961, in addition to other incentives such as the death benefit that your nominee is has the eligibility to in the event of your sudden or accidental death and the maturity benefit that you might be paid if you endure the term.
When the plan meets the maturity age of the policy and if the life assured survives the age of maturity, they will be paid a sum of the sum assured with a simple reversionary bonus along with the final additional bonus if they are applicable.
Money back plans offer the most helpful quality or facility to be able to fulfill your life and financial goals. It offers liquidity of cash through regular payouts. This feature helps you cover your goal expenses.
If the life assured wants to choose to cover the areas of their life that are not already covered in the plan from the beginning, they can choose to add to their policy from a list of additional riders or add-ons to help them cover. These riders are also tax-deductible.
To conclude, a money back plan is the best choice to invest in because it provides you with various efficient benefits like the survival benefit, maturity benefit, tax benefit, death benefit, and additional riders that can help you get through times of crisis.
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.