A Quick Glimpse At Features Of A Money Back Plan
Updated On Jan 13, 2022
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A Money-Back policy is a type of life insurance policy that returns a portion of the sum promised to the life assured in the form of periodical payments after a certain period of time after initiating the investment. People choose these investment alternatives to help them develop and preserve their money for large expenses, pre-planned objectives, financial stability, and to protect at least a portion of their assets. This strategy is popular among individuals who wish to save for retirement, those who have short-term ambitions and make timely purchases, and those who invest in stocks to protect their money. Money-Back comes with a slew of advantages that can help you meet your financial objectives and preserve and increase your money for significant life events and expenses.
Features of a Money Back Policy
Money-Back Policies have several distinguishing features that set them apart from other policies:
1. Money Back Policy Ensures Guaranteed Returns
Money-back plans simply indicate that money is returned to the life insured as a survival incentive after a predetermined time period. The refund is conditional on the policyholder's survival. If the policyholder dies, the nominee receives the sum guaranteed plus any earned bonuses, if any.
2. Recurring Payments
In Money Back plans, the life guaranteed receives a portion of the sum assured at regular intervals to commemorate the attainment of age milestones. After a specific length of time has passed since you began investing in a Money Back plan, you will begin to receive regular payments of a portion of the sum promised.
3. Survival Advantage
When the life guaranteed survives the whole policy term, they get a bonus sum in addition to the appropriate bonuses. They receive the amount in the name of the survival benefit to commemorate the life assured's anniversary.
4. Maturity Advantage
When the policy matures, the life insured gets a sum known as the maturity benefit in exchange for remaining faithful to the plan until its maturity age. This allows the life assured to receive some financial assistance from the insurance in order to achieve his or her ambitions. This feature elevates this Money Back plan above the level of a life insurance policy or a savings vehicle.
5. Death Benefit
The insurance provides a benefit in the terrible event of the life assured's untimely death to guarantee that the life assured's family is financially stable and cared for. This allows the life assured's family to fund their immediate expenditures and live without financial ties to anybody or any organization.
6. Additional Riders
If the life guaranteed to want to cover some element of their life that is not currently covered by the typical Money Back policy, they will be provided some additional riders or add-ons to enable them to do so. These additions are tax-deductible.
7. Tax Advantages
Tax deductions are available to Money Back plans since they are life insurance policies under section 80C of the Income Tax Act of 1961.
Money-Back plans offer many benefits like survival benefit, maturity benefit, death benefit, tax benefit, a long life cover, extra riders, and many more to help us save and build money for future or pre-planned important events or objectives that we establish. They assist us in saving for retirement and living a financially secure life.
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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.