Know About the Unique Advantages Of a Money-Back Plan
Updated On Jun 22, 2022
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Getting life insurance is the first step to start planning for your and your family’s future. No one knows what will happen in the future or what calamity can strike a certain individual at any time. The best they can do is be prepared for anything that strikes without leaving any loopholes.
And one of the best ways to ensure that is to get a money-back insurance plan. A money-back insurance plan offers the benefits of an investment plan along with an insurance plan. That means you can see your money growing in front of your eyes while also having an assurance that your future is financially secured. Along with that, it has a lot of unique advantages over any normal insurance plan. We will see what those advantages are in this article.
First off, what are money-back plans?
Money-back plans are the insurance plans that give the dual benefit of an insurance plan along with an investment plan. You can see your invested wealth expanding in these plans and then get monthly returns from them. They also provide financial security for you and your family’s future.
After purchasing the money-back plan, there is a certain period of time where you will be needed to invest in it. Once that tenure is completed, the insurance company will start giving you monthly payouts in the form of survival benefits. These survival benefits are deemed as rewards for surviving the tenure.
What are the unique advantages of money-back plans?
Money-back plans have several advantages over any normal insurance plan. Some of them are mentioned below.
1. A good way of investing money
Money-back plans act like an investment plan where you invest the money for a while and then start benefiting from the returns. It’s not like any normal insurance plan where you just purchase the plan and then get maturity benefits. Instead, you will start receiving a regular flow of money after a certain interval of time.
2. Provision of bonuses
What makes the money-back plans even more coveted is the additional benefits it gives every now and then. Whenever the insurance company makes a profit, it gives all of its life insured through money-back plans a bonus. Bonuses are paid out at the end of the whole term of the policy.
3. Exemption of taxes
The life insured through a money-back plan does not have to pay any kind of taxes for maturity benefits, survival benefits, and bonuses given by the insurance company. In addition to that, you can also avail a tax exemption of up to Rs. 1.5 lakhs under section 80C of Income Tax Act, 1961.
4. Ensures future financial security
The assurance of future financial security extends to the life assured as well as to their family. That means, in case something happens to you, the insurance company will give the maturity amount to your family. Even if you have taken survival benefits, the insurance company does not deduct it from the maturity amount and gives it whole to your family. It means that your family won’t have to think of their financial status even if you are not there to look after them.
Final Notes
Money-back plans are the perfect way to invest your money while also getting the security of an insurance plan. Investing in it will ensure that you get a regular inflow of cash after a certain amount of time, and your future is also financially secured. It also gives peace of mind to the life insured that even if something happens to them in the future, their family will not have to worry about their financial status.
Also Read: Best Investment Plans In India
