Why Go For Money-back Plans ?
Published On Jul 09, 2021 1:00 PM By Shrida Gulati
Table of Contents
Money back plans are a type of life insurance product which provide a percentage of sum assured during the policy term, to the life assured. These regular payouts are made as lump sum and are calculated as a fixed percentage of the sum assured.
Under this plan a death benefit is provided to the family of the life assured, in case of an unforeseen demise of the life assured during the policy term, regardless of the regular payouts made earlier during the policy term.
Money-back plans also offer a maturity benefit, in case the life assured survives the entire policy term. The maturity benefit is provided at the end of the policy term and is provided after deducting the regular payouts made earlier during the policy term.
Why Go For Money Back Plans?
Money-back plans are a unique type of life insurance product and below mentioned are some of the reason that justify why you should go for money-back plan:
1. Guaranteed Regular Payouts
Money-back plans offer guaranteed regular payouts during the policy term at regular intervals. The payouts are equal to the pre-decided percentage of the sum assured. The payouts at regular intervals can help the life assured to fulfill his/her financial requirements at different life stages. With the regular payouts the life assured doesn’t need to be worried about financial resources to overcome his/her immediate financial requirements at different stages of life.
2. Maturity Benefit
Money-back plans also provide maturity benefit in case the life assured survives the entire policy tenure. The maturity benefit is to be provided at the end of the policy term and after deducting all the regular payouts made during the policy term. The maturity benefit can help the life assured accomplish his/her financial goals.
3. Life Cover
Money-back plans are a type of life insurance plan. It is a savings cum insurance plan. These types of plans provide a death benefit to the family of the life assured, in case of an unforeseen demise of the life assured during the policy term. These types of plans help you ensure financial security of your family even in your absence.
4. Wealth Appreciation
Money-back plans are participating in nature i.e. these plans provide wealth appreciation. The insurance company declares annual bonuses on the money-back plan which is provided with the maturity benefit at the end of the policy term.
Money-back plans offer guaranteed payouts during the policy term and also provide financially secure for your family in your absence. This plan can help you meet your future financial requirements at different stages of life. In case of an unforeseen event this plan will plan financial security for your family. This type of plan also offers wealth appreciation. This plan allows you to avail tax benefits under Section 80C and 10(10D) of The Income Tax Act, 1961. With all the benefits that this type of plan offers one can not avoid to invest in such types of plans.
You may also like to read - What Is A Money-Back Plan?
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.