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Why Do You Need To Buy A Money Back Policy?

Published On May 26, 2021 2:00 PM By InsuranceDekho

A comprehensive and robust insurance plan is a must-buy to ensure financial security and stability for long term goals. A money back policy is one of the most popular life insurance plans available. With careful investments in the future, you can ensure a future of stability for yourself as well as your family.

One of the biggest advantages of a money back policy is that, unlike other insurance plans, you can receive funds from your savings during the policy term. There are several other benefits that a money back plan can provide.

Reasons to Buy a Money Back Plan

Here are some of the biggest reasons why you need to buy a money back plan.

  • Regular Survival Benefits

Money back plans pay out a regular amount in the form of survival benefits. This is a great way to have access to your earnings while you are actively saving up. It is a sustainable method that helps you gain financial stability while you earn and keep you away from spending too much. This steady source of income helps you meet expenses that will come your way.

You may also like to read:- Tips to Choose Best Money Back Plan 

  • Insurance Cover for Helping Nominees

Your insurance cover will help provide for your family in case of your accidental death. Financial support is especially necessary in such times. A benefit payout from your money back plan will be a great gift to your nominees. You can also enhance this protection with the help of different riders that provide for different circumstances. 

  • Premium Waiver Benefit

Money back plans come with Premium Waiver Benefit which pays the withstanding premiums in case the policyholder dies within the policy term. This is helpful in keeping the insurance plan and its several benefits active. For most other insurance plans, this benefit has to be purchased separately with the help of a Rider, but for money back plans, this feature is in-built.

  • Tax Benefits

With a money back plan, you can keep your earnings saved up with tax benefits. All money back plans receive tax benefits as dictated by the Income Tax Act of India. They are usually exempted by Section 80C of the Act. Moreover, all paid out benefits like maturity, death or survival benefits, are tax exempted.

Must Check

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Is Money Back Policy Good Investment Option?

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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