Is Money Back Policy Good Investment Option
Updated On Apr 26, 2021
Table of Contents
A money back plan is generally ideal for people who want a guaranteed return on their investments and also needs regular payouts simultaneously in addition to an insurance cover for the same money they are investing as premium.
Why Is Money Back Policy A Good Investment?
1. Money Back plan is a type of saving plan where you get survival benefit along with maturity benefit and bonus. Money back policy is important as it provides funds on regular intervals after a certain period of time till the end of the policy.
2. When things suddenly take a turn and you are financially blown, you may want to build a corpus for your growth and prosperity. There can be several reasons for you to build funds such as investing in your business every few years, child’s education, etc. The money back plans are best saving plans which you can count on.
Also Read:- Money Back Plans V/S Other Life Insurance Plans
Benefits of Money Back Policy
Below listed are some of the benefits of money back policy-
1. Maturity Benefit
At the end of the policy tenure, the plan holder gets this amount which is the remainder amount after the payment of the Survival Benefits from the total sum assured.
2. Death Benefit
In case of the death of the policy holder, the nominee can avail the sum of money, it is known as death benefit. This is the total sum assured amount and doesn’t take into account the paid Survival Benefits. This helps the policy holder to secure his family against any financial obligations even after the demise of the policy holder.
3. Survival Benefit
The policy holder will get the amount of money in regular intervals over the Here are the salient features of Money Back Policy term of the policy. Once the policy has been bought after a few years of payment of premium, the policy holder starts getting the aforesaid amount which is known as Survival Benefit.The Survival Benefits are calculated as a percentage of the sum assured by the policyholder.
Survival Benefits are paid at regular intervals during the tenure of the policy. There is a fixed interval when the benefits are paid. Every policy has a different payout structure. Similarly, the percentage of Sum Assured paid as Survival Benefits is not fixed and varies between different policies
4. Liquidity
This is the superiority of this plan as it pays a certain amount of the sum assured at regular intervals during the tenure of the policy This provides you the required liquidity and helps you to plan your finances better to meet different goals in your life.
You May Also Like to Read:- Tips to Choose Best Money Back Plan
Conclusion
Money back policies usually come as participating plans where bonuses are added. The accrued bonus is then paid on maturity or on death of the policy holder. Riders are also available under money back policies. Rider benefits are paid as a lump sum only when the contingency covered by the rider occurs during the tenure of the policy.
