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A Complete Analysis Between Money Back And ULIPs

Published On Mar 11, 2022 10:30 AM By InsuranceDekho

ULIP is an abbreviation for Unit Linked Insurance Plan. These are insurance and investing programs together. The Policyholder pays the Premium, which is then split in half. The funds are divided between providing insurance to the insured and investing in the stock market. The other half is invested in the stock market, while the other half is used to ensure the covered individual. There is a risk aspect because the money made via these plans is invested in the market and the Policyholder is the sole risk bearer.
Money Back Plans are a fantastic option for people who would rather not take risks and have guaranteed returns on their investments than deal with market fluctuations. The Money Back Plans, like the Money Back Plans, combine insurance coverage with an investment portfolio. Premiums are paid at the discretion of the insured at fixed intervals. This plan varies from others in that it includes Survival Benefits, which are a percentage of the Sum Assured sent to the insured at specified intervals so that he or she can use them in an emergency or store them to develop wealth. In this essay, we will examine and contrast Money Back Plans and ULIPs.

Benefits of ULIPs

ULIPs have the following characteristics:

1. ULIPs are adaptable.

These plans are flexible because they let the policyholder to pick and move between numerous fund investment options. It also permits the Policyholder to initiate a Partial Withdrawal with certain Extra Charges.

2. Funds for any Critical Situation

Money might be required at any point in one's life. The Partial Withdrawal Facility allows you to use the money whenever you need them, during any key moment of your life.

3. Make a Safe Future for Your Child

The return on investment provided by ULIPs is market-related. These greater returns can help you create a corpus to satisfy your child's financial demands.

4. Make plans for your post-retirement life.

The returns from ULIPs, as well as the insurance, are superior in the long run. If you start investing in ULIPs at a young age, you can accumulate investments that will benefit you once you retire.

Key Benefits of Money-Back Guarantees

The following are some characteristics of money-back plans:

1. Offers Guaranteed Returns

The Money Back Plans are not affected by market fluctuations. Guaranteed Returns are provided in the form of Maturity, Death, and Survival Benefits.

2. Secondary Income Source

The Survival Benefits, which are paid at regular intervals throughout the Policy Term, provide as a secondary source of income. These Monetary Values can be used anyway the Policy Holder sees fit.

3. Benefits of Maturity and Death

The Money Back Plans provide Guaranteed Returns. When the Policy Term expires, you will undoubtedly get the Sum Assured. In the event of the Policyholder's untimely death, the Nominee will undoubtedly get the Lump Sum as a Death Benefit.

4. Riders Extraneous

The Riders supplement the current Plan by providing full coverage. Riders such as Accidental Death, Critical Illness, and so on will protect you against any unforeseen and unforeseeable event.


As you can see, each of these Plans has its own set of advantages, disadvantages, and pros and cons. You just need to check over the facts and evaluate each of the plans to determine which one is best for you. We believe that ULIPs are the best option if you are willing to accept risks and desire better profits. However, if you are not a risk-taker and prefer Guaranteed Returns, the Money Plan is designed for you.

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.

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