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Why Is a Money Back Plan a Good Choice Investment?

Published On Jun 17, 2021 2:00 PM By InsuranceDekho

Investment helps you create a secure and bright future for yourself along with your loved ones. Every investment product is quite different from one another and offers a different variety of benefits. Some plans offer only investment options, however, plans like Money Back Plans offer a combination of investment cum insurance instruments.

Money-Back Plans are an ideal investment solution for those who are looking for a plan which helps them appreciate their wealth as well as provide them with a life cover. The life insurance element of Money Back Plans helps the investor create a shield for their loved ones for their financial soundness in their absence.

These plans offer a wide array of benefits besides wealth creation such as regular payouts, life cover, liquidity, and loan facility to meet financial exigencies. Owing to these benefits, these plans are becoming more and more popular in the country. In this article, we will talk about why investing in a Money Back plan is a good decision.

Why Is a Money Back Plan a Good Choice Investment?

There are certain features that make this plan one of the best investment choices and a popular choosing investment plan:

1. Regular Flow of Income 

The main and most important feature of the Money Back Plan is the regular source of income due to the Survival Benefits that are received by the policyholder within regular intervals. The main advantage of this feature is that the policyholder can fulfill their financial requirements through this benefit rather than just waiting for the maturity to attain. 

2. Low-Risk Investment

Money back policy creates a very less risk connected with them in comparison to other investment policies like Stock investments, Mutual Funds, etc. Risks are open in Mutual Funds and other investment options and have to go through various ups and downs in the Stock Market but Money back plans are something that is not vulnerable to any such fluctuations in the stock market.

3. Wealth Creation By Way of Bonus

Bonus amount is the additional amount that is added to the sum assured on attaining maturity by the insurance company as a form of reward for being in a long-term plan. Bonuses are dependent on the performance of the company and also on the commitment of the policyholder towards the plan. 

4. Tax Benefits

Money-Back policyholders also enjoy tax benefits with other benefits such as survival benefits, death benefits, etc. Under this plan, you are eligible to receive tax benefits under Section 80C and Section 10 (10D) of the Income Tax Act,1961

5. Insurance coverage

This is one of the best parts of the Money Back Plan that the policyholders get returns along with insurance coverage under a one single plan. Not only the returns that have been paid out as Survival benefits by the Insurance company but if anything happens to the insurance policyholder during the policy tenure then also the nominee of the policy will be able to get the entire sum assured amount.

6. Loan Facility

Loan facility can be availed under the Money Back Policy once the policyholder has become eligible for the surrender value of the plan.


Nowadays, Money Back Plans have become the popular choice amongst policyholders. This is the only plan that provides you with triple privilege - guaranteed returns, life cover, wealth creation, all at the same place to protect the future for your loved ones.

Also, Read: 

Reasons To Not Quit Life Insurance Policy In Between The Policy Term

What Happens If You Lie On A Life Insurance?

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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