Is it a Safe Choice to Invest in a Money-back Plan?

Money-back plans provide not only life insurance but also a saving option. These are considered as the plans that provide both insurance and investment options because of the benefits they provide. They are safe and effective to save and grow your money. They are undoubtedly productive ways to invest and pool money for unforeseen expenditures that may come up in the future. People generally use these plans to save for their retirement or just to fulfill their short-term goals as these plans expertise in providing financial help to the life assured from time to time. This is possible through the benefits they come with. These benefits include regular payments, survival benefits, maturity benefits, tax benefits, death benefits, and more. All these benefits provide the life assured with the financial help that they require to fulfill their goals.

Investing is a smart move but investing without proper research is the exact opposite. Before you invest in a plan, you must research carefully and choose a plan that suits your lifestyle, and avoid stretching beyond your financial window. This will result in effective and productive investment for the future.

Reasons that Make a Money-Back Plan Safe 

There are many reasons to invest in a money-back plan. Some of these reasons are as follows -

1. Survival Benefit

Money-back plans offer the sum assured along with final additional bonuses and simple reversionary bonuses if the life assured survives the entire duration of the policy term. This makes sure that the life assured is financially supported for one last time to fulfill their pre-planned goals.

2. Maturity Benefit

If the life assured survives the maturity age mentioned in the policy terms and conditions, they will be paid a total of a part of the sum assured along with simple reversionary bonuses and any applicable final additional bonuses. They can use this amount to save or invest in their pre-planned goals. This benefit of the plan is the factor that makes these plans more than just a life insurance plan, a saving instrument.

3. Death Benefit

To help the family of the life assured be financially stable and not be left depending on others and in debt, the plans also offer the beneficiary of the policy a sum of the sum assured on death and previously paid premium amount along with any applicable bonuses like simple reversionary bonuses and final additional bonuses.

4. Tax Benefit

All the payments made in the plans are eligible for tax deductions under section 80C of the Income Tax Act, 1961. This helps the life assured save more effectively without losing much to pay taxes.

5. A Long Life Cover

These plans come with a long life cover to protect the life assured against any accidental events that may occur in their lives. This helps them financially with their medical bills and expenses for their operations or treatments that they require.

Conclusion

The benefits offered by money-back plans like the survival benefit, the maturity benefit, the death benefit, the tax benefits, a long life cover, additional rider, etc make the plans safe to invest in. They ensure your safety and make sure that your family is financially stable and safe even after you are gone.

You may also like to read - How are Money-Back Plans Different from Other Types of Life Insurance Plans?

 Benefits of a Money Back Plan

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.