Need a Good Saving Plan? Buy Money Back Policy!
Published On Aug 07, 2021
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Investing in traditional life insurance plans is one of preferred choices for people who want to get secured for a long term by generating a guaranteed corpus. Nonetheless, financial issues may arise knocking at one's door unannounced. If that happens, people find themselves longing for money before their investment in life insurance is complete. One of the best ways to tackle the situation of money requirements in a case like such is a savings plan. In other words, a money back plan can be of significant importance in providing one with financial security without them requiring to compromise on their specific needs.
Why Is a Money Back Policy a Good Choice?
Money back policy is a kind of life insurance policy. This policy type is an ideal choice for those who want to fulfill their everyday responsibilities associated with managing their home, paying for school fees, health expenses, and many more without facing financial struggles. The best choice for individuals who do not possess a high-risk appetite and plan to save and create wealth through an insurance plan while maintaining liquidity during the policy term.
What's one of the key features of a money back policy is that even in the case of the unfortunate demise of the policyholder, the nominee is given the sum assured and without any deduction in survival benefits. Money back plan is an excellent insurance option that acts as a key solution to issues related to liquidity during the policy term. How? By paying a specific percentage of sum assured at regular intervals throughout the plan term.
So, if you are a young and healthy individual, note that a money back policy will help you save regularly for your various financial needs. With a money back plan by your side, you will be able to manage financial requirements like medical needs of your parents, down payments for a new vehicle or your home, medical needs of your kids or self, educational needs of your children, their wedding and a lot more.
Remember, a money back plan is basically an endowment policy so the risk factor is always low. You won't have to worry about your investment not yielding good returns. The best thing about money back plans is that they offer fixed and guaranteed returns, which would help you plan all your finances well.
Benefits of Money Back Policy
The major advantages include:
- Insurance coverage during the policy term.
- Regular benefits throughout the policy term.
- Double benefit of insurance cover and long-term investment with high returns.
- Less risky in comparison to investments in mutual funds.
- Regular income in addition to long-term savings.
- Income tax benefits
- Optional riders for critical illnesses, disabilities, specific illnesses, and more.
Due to so many advantages, money back plans are one of the most popular investment options amongst investors. If confused between a money back plan and a term plan, know that it totally depends on your personal needs as well as financial situation. It is advisable that if you are looking for insurance as your investment tool, a money back policy is a reliable choice.
You may also like to read - LIC's New Money Back Plan-20 Years Explained
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.