How Can a Money-Back Plan Help You in Different Stages Of Life?
Published On Aug 09, 2021 3:00 PM By InsuranceDekho
Table of Contents
Money-back is a great way to invest to save and grow your money. It is a life insurance plan and also a saving instrument. It offers many benefits that can help you cover various unexpected or pre-planned expenditures that you may come across in your journey. It helps you save money for your children and their expenses or for your retirement.
Money-back plans are widely chosen because they come with many benefits like survival benefit, maturity benefit, death benefit, tax benefits, and many more. These benefits not only make sure you are financially stable but also ensure the financial stability of your family in case you happen to, unfortunately, pass away during the term of the policy. Before buying a plan to save your money, you must compare different plans and choose a plan that aligns with your lifestyle comfortably.
Features of Money-Back and Their Purposes
Money-Back plans offer many benefits that help you along your journey to retirement. Some important benefits of money-back are listed below -
The amount of the sum assured along with the applicable bonuses that are received by the life assured for surviving the entire duration of the policy term is called the survival benefit. This is to celebrate the completion of the policy and the survival of the life assured throughout the policy term.
If all the premiums are paid correctly until the maturity age of the policy, the life assured is paid a part of the sum assured along with applicable bonuses. This aspect makes the life insurance policy a saving instrument also.
In the case of the life assured’s unforeseen unfortunate death, the insurer pays the nominee of the policy the entire sum assured along with the applicable bonuses to cover the immediate expenditure of the family so that the family does not have to live indebted to someone. This way, you can make sure that even after your unfortunate or accidental death, your family does not have to suffer a financial scarcity.
You may also like to read:- Differences between Money Back Plan and Endowment Plan
Under section 80C of the Income Tax Act, 1961, tax deductions apply to money-back plans. This means that the amount received through money-back policies is not taxable.
If you want to cover some aspect of your life that is not already covered from the beginning under the money-back policy, you can avail of add-ons that come along with the plans to cover those aspects.
The amount that the insurer pays the family or the nominee of the policy in case of the sudden demise of the life assured is called the life cover. Money-Back plans offer a long life cover and great returns in order to sustain the financial stability of the family of the life assured.
Also Read:- Tax Benefits In Money Back Insurance Plans
To conclude, money-back offers many benefits that can help you in different ways at different stages of your life. To fulfill your unforeseen or pre-planned expenditures and goals, the policy offers regular payouts. To help you through difficult times in life, on maturity, a part of the sum assured along with bonuses is paid. To help your family get through times of crisis, a death benefit is paid. At different stages of life, the policy offers different but suitable benefits to support you financially.
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.