How Is Money Back Policy More Beneficial Than Other Types Of Life Insurance Policy?
Published On Nov 10, 2021
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Money-back plans provide you with the best of both insurance and savings, allowing you to enjoy both life insurance and financial savings. Money-back life insurance policies pay out a portion of the sum promised at regular intervals after a few years from the start of the policy term, whereas traditional life insurance policies pay out the entire sum assured at the plan's maturity. Money-back insurance are popular among individuals who want to keep at least a portion of their earnings from their investments, as well as those who have short-term or pre-planned goals.Money-back policies provide a number of advantages that set them apart from other types of life insurance. Regular payouts, a survival benefit, maturity benefit, death benefit, tax benefit, a long life cover, extra riders, and more are all advantages of purchasing a money-back plan.
Money-Back Features That Set It Apart From Other Life Insurance Plans
While all life insurance plans include benefits to assist you meet your expenses, money-back plans provide a bit more. Because of the following advantages, money-back is not just a life insurance policy but also a saving mechanism. -
1. Advantage of Maturity
When the plan reaches its maturity age and the life promised survives the policy's maturity age, the life assured will receive the sum assured plus any further incentives that may be available.
2. Benefits of Survival
If the life assured lives for the whole policy period, they will be paid the sum promised, plus any revisional and final supplementary bonuses that may be available.
3. Benefits on Death
If the life assured dies inadvertently before the end of the policy term and all premiums are paid while the policy is in effect, the nominee or beneficiary of the policy will receive the complete sum promised on death as well as any premiums paid previous to death. This would assist the life guaranteed family with covering urgent needs and gaining financial security even after you have passed away.
This advantage ensures that your family is not financially entangled with anyone or any organisation. The sum promised on death is frequently more than the policy's basic sum assured.
4. Benefit from Taxes
Under section 80C of the Income Tax Act of 1961, all payments made under these schemes are tax deductible.
5. Additional Riders
If the lifeguards want to cover aspects of their life that are not currently covered in the plan, they will be given a list of extra riders or add-ons to allow them to do so without difficulty. These add-ons can also be deducted from your taxes.
Money-back offers a variety of perks that set it apart from the other life insurance products on the market. Maturity benefit, survival benefit, tax benefit, and many others are among them. Money-back is also a saving mechanism because of the maturity benefit it provides.
Also read - Why Go For Money Back Plans Offered By LIC?
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.