Why Go For Money Back Policies?
Updated On Jan 13, 2022
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For those looking for a guaranteed return policy, a Money Back Plan is one of the best insurance policies in India. This policy also includes a guaranteed payout after a certain number of years of investment. When it comes to life insurance, this policy performs admirably. If something unfortunate happens to the policyholder, such as the death of the life assured, the money is distributed to the policy's nominees. You might be looking for a service that will bring the perfect blend together. As a result, the best self-improvement product includes a money-back guarantee. A money return plan not only provides coverage but also ensures that you will receive a set amount of money each month to meet your needs.
5 Advantages of Purchasing a Money Back Plan
Money-back plans are insurance policies that pay you extra if you participate. A money-back guarantee comes with a slew of other benefits.
Advantages of Survival
Money-back programmes are distinguished by their ability to provide Survival benefits. The money-back policy is beneficial because it pays out Survival Benefit on a regular basis and is calculated as a percentage of the Principal Amount. Payment arrangements vary by plan, but payments are made at regular intervals throughout the policy term.
The maturity payments on a money-back policy are made after the policy period has ended. It is given to the insurer, who must live until the plan's maturity date in order to receive it. All accumulated incentives are also distributed at this time.
Returns Without Risk
The money-back policy is one of the best options for consumers looking to invest in risk-free programmes. There is almost no risk of harm, and it produces the best results. The guaranteed payments at policy maturity, survival benefit, periodic payments, and effective security layers of this programme make it a valuable alternative that benefits investors.
Payment of Premiums
Payments for premiums can be made in a variety of ways. Premiums can be paid yearly, twice yearly, quarterly, or monthly. There is, in fact, a notice period that serves as a minimum contract stretch in the event of late premium payments. If you do not pay your premiums on time, your insurance will lapse and you will be required to pay reinstatement fees.
While considering the tax benefits, one might also consider a money-back policy. Tax advantages on the price received and the value created are provided by income tax laws under sections 80C and 10(10D) of the Income Tax Act of 1961.
Most of us want to invest in a traditional life insurance policy for a long time in order to build a guaranteed corpus. However, there is a problem if we need money before the term is over. A financial disaster could occur at any time, and we'll need money to deal with it. A standard life insurance policy, on the other hand, is meaningless if the policy's term has not expired. We might be able to get a loan, but the amount is likely to be limited. A Money-Back plan addresses the issue of liquidity during the plan's term by paying a monthly percentage of the Sum Assured.
You may also like: Do You Want To Exit From A Money Back Policy? Read This!
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.