Reasons to Purchase a Money Back Plan
Updated On Jul 15, 2021
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As we all know that life is full of uncertainties because as an adult as a parent you have faced and overcome all of them. That is why a Child Insurance Plan can give you an upper hand in case such uncertainty arises for your Children. A Child Insurance Plan covers the expense that comes in the future in terms of education, marriage, or medical ailments. The Child is assured to get the benefit out of this Policy even in case of the student demise of the Parent.
Key Benefits of the Money Back Plan
The Money Back Plans are especially for those people who do not want to take the risk and want a safe and secure Investment. The Money Back Plans are not dependent on market fluctuations. They offer a guaranteed lump sum in case of Maturity and Death and Regular Incomes at Fixed Intervals.
Death is a major factor that can destabilize the financial structure of a family. In such cases, the Money Back Plans offer a Death Benefit to the Nominee of the Policyholder.
This is the lump sum amount that is paid out at the end of the policy term. The Sum Assured or the Maturity Benefit also contains the Bonuses that have been accumulated throughout the Policy Term.
The Money Back Plans are known for this particular benefit where the insured gets a percentage of the Sum Assured at Fixed Periodic Intervals which act as a secondary source of Income.
In this Article, we will discuss the reasons to purchase Money Back Plans
Reasons to Buy a Money Back Plan
There are certain reasons for why should one buy Money Back Plans
Money Back Policies give you the dual advantage of Insurance, as well as Investment. Along with offering life coverage, they invest a part of Premiums in the market. Thus, apart from securing your family’s future, you also have the chance of saving for your future goals with a Money Back Policy.
It is to be noted that the Money Back Plans are less risky as they do not deal with any Investment such as Equity or Bonds.
Money Back Plans offer you a fixed percentage of the Maturity Benefits periodically. You can invest in these monthly income schemes to support your family or save them or invest them to increase your wealth.
Family’s Financial Safety
The foremost important feature of a Money Back Policy is the life insurance component. If in case something unforeseen happens to you, your nominee will get an assured sum as a payout. This makes sure that you do not leave your family behind in financial stress. This means that your family will not go under any financial stress even in your absence.
Waiver of Premium Rider
If in case something unfortunate happens to the policyholder, before the policy term ends, the further premiums are waived off. This means that the family or the nominee will not need to worry about any additional expenses when there is already a lot of emotional and financial stress going on.
Policyholders who regularly pay premiums towards the Money Back Policy can enjoy tax benefits. Tax benefits of these plans are defined under section 80C of the Income Tax Act, 1961. Also, the Maturity Benefit, Survival Benefit, and Bonuses from the monthly investment plans are tax-free.
The Money Back Plans can be a helping hand in times of distress. With less risk and Guaranteed Payouts, you will be assured that in your presence or your absence your family will be protected.
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.