Common Features of Money-Back Plans

A money-back policy is a life insurance policy that offers a portion of the sum assured back to the life assured as regular payments after a certain amount of time after starting the investment at regular intervals. These investment options are widely chosen by people to help themselves grow and save their money for major expenditures, pre-planned goals, financial stability, and to safeguard at least a part of their savings. 

This plan is popular among those who want to save for their retirement, those with short-term plans and timely expenditure, and those who invest in stocks to keep their savings safe. Money-back comes with a wide range of benefits that help you reach your financial goals and save and grow your money for major events and expenditures in life.

You may also like to read:- Need a Good Saving Plan? Buy Money Back Policy! 

Common Features of a Money-Back Policy

• Regular Payouts

In money-back plans, the life assured is paid a portion of the sum assured at regular intervals to celebrate the age milestones reached. After a certain period after you start investing in a money-back plan, you will start to receive a regular payment of a part of the sum assured.

• Survival Benefit

The life assured receives a bonus amount along with the applicable bonuses when they survive the entire duration of the policy term. They receive the amount in the name of the survival benefit to celebrate the anniversary of the life assured.

• Maturity Benefit

When the policy matures, the life assured receives an amount named the maturity benefit for staying loyal to the plan until its maturity age. This helps the life assured to get a little financial support from the policy to fulfill his or her goals. This feature makes this money-back plan something more than just a life insurance plan, a saving instrument.

• Death Benefit

To ensure that the life assured’s family is financially stable and taken care of, the policy offers a benefit on the unfortunate event of the life assured’s unforeseen death. This helps the family of the life assured to cover their immediate expenses and live without financial bondage or debt to anybody or any organization.

• Additional Riders

If the life assured wants to cover some aspect that is not already covered by the traditional money-back policy, they will be offered some additional riders or add-ons to help them cover those aspects of life. These riders are tax-deductible.

• Tax Benefits

Under section 80C of the Income Tax Act, 1961, tax deductions are applicable to the money-back plans as they are life insurance plans.

• Life Cover

Money-back plans are widely known to offer a long life cover. They cover different aspects of the life assured’s life to help them stay financially stable and reach the pre-planned major events and life goals they set for themselves. They also offer considerably good returns.

Also Read:- How Much Money Do I Need To Retire At The Age Of 60?

Conclusion

The Money-back plans provide us with different benefits like survival benefit, maturity benefit, death benefit, tax benefit, a long life cover, additional riders, and many more to help us save and grow money for the future or pre-planned major events or the goals we set. They help us save for retirement and lead a financially comfortable life.

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.