Is Money Back Policy The Best Investment Option?
Updated On Nov 12, 2021
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Money return plans, also known as Anticipated Endowment plans, offer liquidity benefits. Money return plans are a form of policy in which the insured individual is entitled to a certain percentage of the total amount at regular periods rather than receiving a large sum at the end of the term. The Survival Benefit is the amount that the insured person receives at regular intervals, and the Maturity Benefit is the remaining amount that the insured person can get after the term. The Money Back Plan has the advantage of paying benefits at regular periods and is a low-risk investing choice.
Why Should You Purchase A Money Back Guarantee Plan?
A Money Back plan is an excellent investment option for a variety of reasons. The following are some of the reasons:
You will have liquidity with this plan since you will be paid regularly. This enables you to better plan and manage your financial demands, both now and in the future.
2. Risk-Free Returns
Other types of products, such as ULIPs, are risk-free since they invest your money in a variety of market instruments. Because they pool your money in stocks and equities, investing in products like ULIPs may be dangerous. If you don't want to take such chances, buying a Money Back plan is a good idea.
3. Survival Benefits
A money return plan pays you a portion of the sum assured every month. If you make it through the term, you will be entitled to maturity benefits as well as any incentives that you may be eligible for.
4. Insurance Coverage
Money Back plans are both an insurance and an investment product, they provide you with the right balance. If something occurs to you, your nominee will receive the guaranteed sum, regardless of the regular payout you've been receiving. Money Back plans not only allows you to develop your money and receive a monthly income to meet your requirements, but it also helps to financially safeguard your family.
If an insurance company earns a profit, it may provide you with a bonus. This may be considered an additional advantage, and it is always wise to obtain a Money Back plan from a reputable insurance company.
6. Tax Benefits
You are also eligible for tax advantages under Section 80C of the Income Tax Act of 1961, in addition to other benefits such as the death benefit that your nominee is entitled to in the event of your untimely death and the maturity benefit that you get if you survive the term.
It is strongly advised that you get a Money Back plan for yourself if you are seeking a product that provides insurance coverage while also assisting you in building a corpus. You'll come across products such as ULIPs, endowment plans, and other types of insurance that not only provide coverage but also allow you to maximize your investments. These items, however, are not the same as a Money Back guarantee. Because ULIPs invest their money in a variety of market products, they are risky. Endowment plans, unlike Money Back plans, do not pay their investors regularly. A money return plan is the most ideal alternative for you if you have no taste for risks and want a monthly income credited to your account. You must be certain of your financial objectives and have a rough estimate of the entire amount of money you wish to invest.
You may also like to read - Best Money Back Plans Available In India
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.