Features of Money Back Policy
Published On Jan 20, 2022 10:40 AM By InsuranceDekho
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A money back policy is a life insurance policy that pays out a portion of the sum promised to the life assured in monthly instalments after a set period of time has passed since the investment was made. People choose these investment options to help them develop and save money for significant purchases, pre-planned goals, financial stability, and to protect at least a portion of their resources. This plan is popular among those who want to save for retirement, those who have short-term plans and need to spend quickly, and those who wish to invest in stocks to protect their assets. Money Back comes with a slew of advantages that can help you achieve your financial objectives and save and increase your money for life's big events and expenses.
Features of Money Back Insurance Policy
The following are some of the most important advantages of money back insurance:
1. Provides Insurance
Money Back policies are far preferable to other types of insurance. Customers can select a suitable cover based on their unique needs, ensuring that their loved ones' financial needs are addressed without worry.
2. Provides a Guaranteed Sum
In the event of the policyholder's death, the sum insured is paid to the nominee as a lump sum. The sum can be used to cover the nominee's expenses, allowing them to live a peaceful life free of financial worries. It's worth noting that if the insured lives to the end of the policy term, they'll receive survival payments at policy maturity.
3. Returns are available within a few years of investing.
Money back plans provide a consistent source of income. They provide a constant inflow of money at regular intervals, unlike standard life insurance plans.
4. Survival Advantages
It is particularly well-known for providing Policyholders with survival advantages. As previously indicated, the insurance pays the investor a specified percentage of the insured money at predetermined monthly intervals. This is a unique feature that you won't find in any other insurance policy. Survival benefits, on the other hand, are exclusively paid to the assured party and not to his or her nominees if he or she dies during the tenure.
5. Offers Additional Benefits
Every year, a bonus is added to the Money Back guarantee. It's worth noting that this incentive is only paid out when the account reaches maturity. One of the nicest aspects of this incentive is that it aids in the achievement of financial objectives.
6. Provides Tax Advantages
Section 80C of the Income Act of 1961 provides tax incentives for money return programmes. Section 10(10D) of the Income Tax Act of 1961 exempts the sum promised from taxation.
7. Add On Riders
It features optional riders that can be installed to increase the protection level. These riders may have been engaged in serious illnesses, accidents, or other incidents.
8. Several Policy Terms
It offers the consumer to choose from a number of policy term alternatives based on their needs and objectives.
Money Back plans offer a variety of benefits such as survival, maturity, death, tax benefits, long-term coverage, additional riders, and more to assist us in saving and growing money for future or pre-planned important events or goals. They assist us in saving for retirement and living a financially secure life.
Also read- Money Back Life Insurance Benefits
What Is The Function Of 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.