What Makes Money Back Plan The Best Investment Option?
Published On Jun 22, 2021 10:00 AM By InsuranceDekho
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A Money Back Plan is a type of life insurance policy that permits the policyholder to get regular payouts as a feature of the survival advantage during the term plan. As a compensation for survival, the insurance agencies additionally furnish a survival advantage with it which makes it a beneficial venture plan as far as profitability and reliability is concerned.
The money back plan has the unique element of giving constant installments to the recipient all through the term. Instead of a single lump sum at the end of the policy period or at death, the policyholder will receive regular payouts for the rest of his or her life term and this is what makes the Money Back Plan one of the best investment options.
Why Is A Money Back Plan The Best Investment Option?
New investors often wonder what makes a money back plan the best of all investment options. Is it only the final profitability and a long term reliability that lures investors towards it or there's more. While these alone are great factors, a money back plan comes with greater benefits too. Here are some of them-
1. The Surety Of A Regular Income
In this uncertain world where life has no guarantee, a surety of a regular source of income for your family and even for you when alive is not less than a godsent gift. This compensation is otherwise called 'survival advantage', and is a predefined percentage of the guaranteed aggregate. This sum is paid at standard stretches till the term plan reaches its maturity. The advantage of this feature is that you can satisfy your intermittent monetary necessities without waiting for the policy's maturity.
2. It Is A Low Risk Investment
Money Back Plans are the most low risk investments available in the insurance market despite the fact that they're both an insurance as well as investment.
Money back plans are a safe venture and are not at all like mutual funds or endowments. Monetary ventures by and large imply high dangers because of unstable capital economic situations, which is, fortunately, not the situation with money back plans. Therefore it is advised that individuals who don't have the backup to deal with losses in an investment, invest into safer plans like money backs.
3. It Comes With Many Special Features
A Money Back Plan comes with various special features such as different types of riders including premium waiver riders that waive off your premium amount in case of any mishap with you. The plan also provides tax benefits under the sections 80C and 80D of the Income Tax Act of India which encourages investors to invest in this plan. It also gives yearly bonuses to its investors and makes sure they get the best profit from their investments.
4. The Widest Insurance Cover
Money back plans definitely give you the widest insurance cover. They not only act as an insurance plan but also act as an investment and give you the profit share of both equally. Money back plans come with various coverages and with the flexibility of adding different riders into it, you can always increase your insurance coverage. The fact that it will support your family monetarily both when you're alive or not adds to the novel cause of the cover and ensures that having a Money Back Plan will only make your life easier.
5. Frequent And Increased Bonuses
Who doesn't like bonuses? Most of the money back plans have Reversionary bonus and terminal bonus Most money back policies also consider the reversionary bonus. A reversionary bonus is declared at the end of every fiscal year. The bonus sum is considered as an aggregate off the sum assured. There are two types of reversionary bonuses- simple and compound bonus.
It should be crystal clear by now that A Money Back Plan is the best investment plan from every aspect an investor can look into. Invest into A Money Back Plan right now and start saving as well as investing.
Also Read: Benefits Of A Money Back Policy
Key Components of A Money Back 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.