Reasons To Purchase A Money Back Policy
Updated On Jan 18, 2022
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You may desire a product that combines the best of both worlds. As a result, the best product you can get for yourself is a Money Back plan. A Money-Back plan not only provides coverage but also ensures that you receive a set amount of money on a regular basis to meet your needs. You can buy a Money Back plan for a set period of time, but you'll have to pay premiums on a regular basis. In the event that you die, your beneficiary will receive a lump-sum payment known as the death benefit. You will also be paid a regular sum of money on a regular basis, and when your policy matures, you will be paid the entire sum assured, plus any bonuses you may be eligible for. Riders or add-on plans are available with this type of plan, providing an additional layer of protection.
Benefits of Purchasing a Money Back Plan
There are several reasons why one should purchase Money Back Plans.
1. Advantages on both sides
Money-Back Policies provide you with the benefits of both insurance and investment. They invest a portion of premiums in the market in addition to providing life insurance. As a result, in addition to securing your family's future, a Money Back Policy gives you the opportunity to save for your future goals. It's worth noting that Money Back Plans are less risky because they don't involve any type of investment, such as stocks or bonds.
2. Regular Income
Money-Back Plans pay you a set percentage of your Maturity Benefits on a regular basis. These monthly income schemes can be used to support your family, or they can be saved or invested to increase your wealth.
3. Financial Security for the Family
The life insurance component of a Money Back Policy is the most important feature. If something unexpected happens to you, your nominee will receive a guaranteed amount as a payout. This ensures that you do not leave your loved ones in a financial bind. This means that your family will be financially secure even if you are not present.
4. Premium Rider Waiver
The policyholder's premiums are waived if something unfortunate happens to him or her before the policy term ends. This means that the family or nominee will not have to worry about any additional costs at a time when they are already dealing with a great deal of emotional and financial stress.
5. Benefits from Taxes
Policyholders who pay their Money Back Policy premiums on a regular basis may be eligible for tax benefits. Section 80C of the Income Tax Act of 1961 defines the tax benefits of these plans. The monthly investment plans' Maturity Benefit, Survival Benefit, and Bonuses are also tax-free.
Before purchasing a Money-Back life insurance policy, it is always advisable to conduct thorough research. Make proper comparisons of various insurance plans using online calculators. Also, before enrolling in a plan, read the policy document carefully to understand the coverage, benefits, and exclusions.
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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.