Is A Money Back Plan Worth Investing In?
Published On Jan 05, 2022 10:00 AM By InsuranceDekho
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Money Back plans to safeguard your family's financial interests in the event of things like death or catastrophic sickness. Money Back plans are one of the most popular life insurance plans in India since they combine insurance and investing. As a policyholder, you will get numerous rewards for survival under these policies. A Money Back plan is perfect for customers who want a guaranteed return on their investments and want monthly reimbursements. It's similar to an insurance policy in that the money they put in is considered a premium. Simply defined, unlike traditional life insurance, a Money Back plan pays money at regular intervals, calculated as a percentage of the total insured, during the policy term.
Advantages of Money Back plans Which Makes It Worth Investing
One of the most dependable methods to save money is through Money Back programs. Some of the reasons why they are great investments are as follows:
1. Income During The Lifetime of Money Back Plan
A Money Back policy ensures that the insured receives a reimbursement every few years to cover any big expenses that may arise. The survivor benefit is accrued every few years, providing policyholders with a second source of income. This money might be placed toward a vacation, an emergency fund, a down payment on a house or apartment, or paying off your children's school or tuition fees.
The insurance pays a certain amount of money at regular periods during the policy term. This allows you to collect the required funds and better handle your finances in order to attain various life goals.
3. Returns That Are Devoid of Risk
A Money Back plan is the greatest alternative for you if you are apprehensive of taking risks because it does not include any risk. If the insured lives, the insurance guarantees a profit. The nominee, on the other hand, receives the sum promised as well as any earned bonuses if the policyholder dies.
4. Invest In A Strategy That Guarantees A Profit
A money back policy's guaranteed returns allow it to outperform market-linked plans. A money back plan is a good option for anyone seeking a risk-free investment. The policyholder's survival is required for a reimbursement to be guaranteed. If the policyholder dies, the nominee is entitled to the guaranteed payout as well as any earned bonuses.
5. Maturity-Based Earnings
A Money Back policy, like a traditional insurance policy, pays the promised amount or the maturity amount at the conclusion of the policy period. The sum pledged at the commencement of the insurance is received by the investors, and the returns are guaranteed and secure.
6. Income In the Event Of The Insured Person's Death
In the event of the policyholder's untimely death, the nominee receives the guaranteed sum plus any additional funds. In addition, the Money Back policy functions similarly to typical life insurance, providing for your family and planning for their future even when you are not around. Because it is a Money Back plan, it is a guaranteed plan, and the policy's nominee will almost surely get money.
Money Back Plans are considerably safer to invest in than any other type of investment. It's an excellent choice for anyone searching for both life insurance and investment alternatives in one convenient location. If the insured dies, the insurance company pays the nominee the whole sum guaranteed, with no deduction from the survivor benefits. A Money Back plan addresses the issue of liquidity during the plan's life by paying a monthly percentage of the Sum Assured. Money Back Plans are without a doubt the greatest.
Also read - ICICI Pru Cash Advantage Policy features and benefits explained
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.