Tips to Choose Best Money Back Plan

The best and most efficient way to save your current earnings is via an insurance plan. With the growing awareness about the importance of saving and investment, the popularity of insurance plans has also risen. Subsequently, different types of insurance plans have also been made available over time. Money Back Plans are such a type of savings instrument.

Unlike most insurance plans, which only pay out at certain points in time, Money Back plans pay out a certain percentage of the sum assured at regular intervals. It is important to find the best money back plan in order for the best outcome for your savings. Check out the various tips to find the best money back plan for yourself.

Also Read: What Do You Need To Know Before Buying A Money Back Policy?

Tips to Choose Best Money Back Plan

Rather than picking up just any money back plan, it is important to get the best one suited for your requirements. Apply the following tips to choose the best money back plan.

Tip 1: Note the Survival Benefit Percentage

Money back plans are popular for their payouts at regular intervals. It is a hugely beneficial feature that helps by providing regular support which in turn may avert financial crises and the potential need to liquidate your entire savings corpus. The regular payout is known as Survival Benefits and it is equal to a percentage of the sum assured under the plan. Make sure to check whether this percentage is enough for you.

Tip 2: Duration of the Policy Term

The policy term of a Money Back Plan is one of its most determining features. Money Back Plans are sustainable and are truly beneficial when continued with, for a long time. It is recommended that the policy term for your money back plan should be at least 20 years. Moreover, since it has regular payouts, money back plans are not very difficult to maintain.

Tip 3: Frequency of Survival Benefits

Different money back plans pay their Survival Benefits at different frequencies. Make sure to check out whether the frequency is compatible with your requirements to get the most use out of your money back plan.

Tip 4: Check the Tax Benefits Provided 

Tax Benefits are very essential and important for financial savings. All tax benefits are regulated under Although most insurance plans and money back plans provide tax benefits alike, some money back plans refuse to provide them if the survival benefits amount to more than 20% of the sum assured. 

Check: Features of a Money-Back Plan

Endnotes

The above tips are some general reminders to look out for when aiming to buy the best money back plan for yourself. Nevertheless, it is always advised to look to personal requirements to find the money back plan best suited for your needs and circumstances.

Read More: Why are Money-Back Plans the Best Investment Option?