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Top 6 Reasons Why You Should Not Avoid Investing in Money Back Policies

Updated On Sep 19, 2021

Do you want to see your money grow over a specific period? Are investments a crucial part of your financial plan? If so, it is highly advised to you to invest your savings in different investment tools that can help you help your money to grow and fulfill all your life goals without having any financial stress in your mind.

What if there is a product that can help you not only invest, but also insure? If ready to make a worthwhile investment, know that a money back plan would be the ideal solution to go with.

A money back plan will not only keep you and your loved ones financially secured with its life cover feature, but also ensure that you get a sum of money regularly to get your needs met. You can easily purchase a money back policy for a specific time. The policy cover will come at a price, i.e. the premium that you will have to pay on a regular basis.

You may have other options in mind, but rest assured a money back policy will serve your purpose well as it comes with numerous benefits.

Top 6 Reasons Why You Should Not Avoid Investing in Money Back Policies

Below mentioned are 6 prime reasons why you should definitely consider investing in money back policy and not avoid it for any reason:

1. No Risk

You may find various investment options during your search, but remember those can include investing your money in different market instruments. ULIP is one of the key examples of the same. ULIPs and other investment products can be somewhat risky in nature due to the fact that they pool the investor’s money in stocks and equity. If you are a risk-averse individual, a money back policy would be ideal for you.

Must Read: Money Back Plan - More Than Just An Insurance Plan

2. Liquidity

Money back policies come with the significant feature of liquidity, which enables the policyholder to receive a sum of money on a regular basis. When you will have liquidity due to your money back policy, you will be easily able to plan your needs better and take care of them without making any compromises.

3. Insurance Coverage

Money back policies are insurance cum investment products. If something happens to the policyholder, these policies provide the nominee with the sum assured even if regular payouts are being given periodically. This way, a money back policy not only takes care of your needs, but also makes sure that your family is financially protected even if you are no longer with them to provide for them.

4. Survival Benefits

Money back plans pay a part of the sum assured on a regular basis. It must be noted that if the policyholder survives the policy term, they are eligible to get maturity benefits in addition to the bonuses that they might be eligible for.

5. Bonus

If an insurance company makes a profit, it may offer its policyholders a bonus amount. This bonus comes across as an additional benefit that the policyholder may get. It is highly advised to buy a money back policy from a reputable company so that your chances of bonuses increase.

6. Tax Benefits

Tax benefits are also a crucial reason why you should not neglect a money back policy as you will be eligible to enjoy tax benefits under Section 80C of the Income Tax Act, 1961.

A money back policy can help you insure yourself as well as build a corpus. If you do not want to take a risk and want a regular income instead, choose a money back plan today!

Also Read: Should I Exit From The Money Back Insurance Policy?

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.

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