Know About Some Unique Features Of A Money Back Policy
Published On Jan 28, 2022 11:50 AM By InsuranceDekho
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Traditional life insurance policies are one of the greatest solutions for individuals who want to establish a guaranteed corpus and be financially comfortable in the long run. Financial difficulties, on the other hand, may come knocking at one's door without warning. If this happens, people may develop a financial need before their life insurance investment is fulfilled. In a situation like this, a savings plan is one of the best ways to cope with the problem of money requirements. To put it another way, a Money Back plan can help provide financial security without requiring a compromise on one's individual criteria.
Typical Features of a Money Back Guarantee
Some common qualities of a Money Back policy are listed below:
1. Payments Are Made On A Regular Basis
Money Back policies pay up a portion of the amount guaranteed to the life assured at regular intervals to mark the achievement of specified ages milestones. Once a certain period of time has passed since you first invested in a Money Back plan, you will begin to receive a regular payment of a portion of the cash guaranteed.
2. Survival's Advantages
When a life assured lives to the end of the policy term, they are awarded a bonus payment as well as any applicable bonuses. They receive the funds under the pretence of a survival bonus to mark the anniversary of their guaranteed survival.
3. Maturity's Benefit
The life insured receives a maturity reward when the policy matures in exchange for being loyal to the plan until it reaches its maturity age. This permits the life assured to receive financial aid from the insurance company in order to meet his or her goals. This feature raises the Money Back plan from a life insurance policy to a savings tool.
4. Additional Riders
Extra riders or add-ons will be provided to the life insured if they wish to cover an aspect of their life that is not covered by the regular Money Back policy. The cost of these add-ons can be deducted from your taxes.
5. Taxes' Advantages
Section 80C of the Income Tax Act of 1961 allows for tax deductions for Money Back plans and life insurance contracts.
6. Life Cover
Long-term life insurance is provided by Life Cover Money Back policies, which are well-known. They cover a wide range of aspects of the life assured's life in order to help them be financially secure and achieve the significant events and life goals that they have set for themselves. They also have a high rate of return.
7. Benefits On Death
In the unfortunate case of the life assured's premature death, the insurance offers a benefit to ensure that the life assured's family is financially secure and cared for. This allows the life-guaranteed family to pay their immediate expenses and live without being obligated to anyone or any institution.
Needless to say, several insurance companies provide Money Back policies that may appear to be appropriate for your needs. But keep in mind that you'll have to be very selective in your choices. In order to make an informed decision, you'll need to compare premiums, plan features, plan inclusions, plan exclusions, plan payout alternatives, and other important facts.
Also read- Why Is ICICI Pru Cash Advantage A Good Money Back Plan?
Reasons Why You Purchase A Money Back Policy
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.