Money Back Plan Are The Best Investment Options. Here's Why?
Published On Aug 15, 2021
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Every person wants to see his money grow with time. Financial investments are crucial to enhance your wealth for which you will have to invest your savings in different investment instruments that can help your money grow and allow you to achieve your goals. Along with the investment, insurance holds equal importance nowadays to ensure your family does not go through any financial crisis in your absence in the future.
Understanding of Money Back Policy
A money-back is an investment option designed to provide you insurance along with the assurance of getting a regular sum of money so you can take care of your needs. To buy a money-back policy, you need to pay a premium on a regular basis without any break.
Under the money-back policy, the nominee will get a lump-sum amount known as the death benefit. With a money-back plan, you will get an amount on a regular basis and the entire amount of the sum assured along with the bonus after the maturity of the policy. Policyholders can opt for add-on or rider covers that add an additional layer of protection.
Why Should You Purchase a Money Back Policy?
There are several reasons that prove a money plan is a brilliant investment instrument which are as follow:
The money-back policy assures liquidity by providing you with a regular sum of money. This allows you to make the policy in a better manner and look after your financial requirements for the present and the future.
Risk-free in Nature
There are different types of products like ULIPs that invest your money in several sorts of market instruments that comprise stocks and equity. Investment in various tools spread the loss and makes the plan less risky.
The money-back policy pays a part of your sum assured amount on a regular basis. On surviving the policy term, the policy provides you with the maturity benefits in addition to the bonuses that you will be eligible for.
Money back plans give you the best combination of coverage in terms of insurance as well as an investment product. It promises to offer your beneficiary the sum assured amount irrespective of the regular payout you have been getting over the period of time, in case of your demise. In simple terms, this product helps you grow your money and offer you a regular income to achieve your goals and shield your family financially in your absence.
In addition to the policy terms and coverage, many insurance providers provide you with a bonus in case it secures a profit. It serves as an additional benefit that you can get and it is suggested to buy a money-back plan from a renowned insurance company.
In addition to benefits like death benefit that your loved ones are entitled to get in the condition of your demise and maturity benefit that you receive on surviving the policy term, you are also eligible to get the tax benefits under the section 80C of the Income Tax Act.
People who want to get a product that can offer an insurance cover as well as assist in building the corpus should go for a money-back plan. Other investment instruments are good but some are risky, some don’t offer regular payouts, etc, while a money-back plan works to offer a balanced coverage for policyholders.
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.