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Why is Money-Back Considered a Superior Investment Option?

Updated On Jul 26, 2021

When the question of investing arises, some options can provide good returns and benefits. One such investment option is Money-Back. 

A money-back policy is a Life Insurance policy. As its name suggests, it is a plan where the life assured gets a proportion of the sum assured at regular intervals of time. While this being the alpha reason to choose the policy, there are various other reasons to invest in this policy too. To have secured insurance, one must choose a plan carefully by considering and comparing all the features of a plan.

Features of Money-Back That Make It A Superior Investment Option

Money-Back provides various reasons to be chosen as the superior investment option amongst other investment options. A few reasons are listed below.

  • Investment and Insurance

Money-Back offers the best of both investment and insurance to its users. They invest a portion of premiums in the market. This way, the assured can save money and doesn’t have to be worried about their future goals. It also provides future security. Investing in money-back is less risky.

  • Regular Payouts

It offers a fixed portion of the maturity benefits periodically. The amount and time period can be chosen by the life assured. The assured can invest in monthly schemes to support regular incomes or choose payouts to help themselves get through difficult stages of life.

  • Family’s Financial Security

In money-back, if something unfortunate happens to the assured, the nominee gets the sum assured under payouts. This is to assure that their family is not left behind with financial difficulties after they are gone. This feature helps the family to get through daily life without any hassle. This feature is the most important feature of all as it ensures the safety of the family even in the absence of the assured. 

  • Tax Benefits

The amount of money that is paid to the life assured is tax-free. It is under section 10(10D) of the Income Tax Act, 1961. The policy enters a grace period when the life assured fails to pay their premium on time.

It is advisable to consider all the features and compare different plans and select a suitable plan while keeping in mind the financial support, the number of funds they can invest, etc.

  • Guaranteed Returns

If one wants to grow their money, they must invest money in the right place where the return rate is high. Money-Back offers a higher return rate than the other investment plans. Return rates and money growth are directly proportional. Higher return rates give higher growth of the money invested. 

  • Save For Retirement

It is important to save for retirement while you are working. Putting your retirement savings in stocks, portfolios, precious metals, etc will help you live off the funds earned from these investments.

Another way to invest and save for retirement is to invest in Money-Back. 


Money-Back offers a lot of beneficial features that make it unique and appealing to buyers.  

The features include regular payouts, tax benefits, financial security, investment with insurance, higher returns, and saving for retirement. There are also other benefits such as survival benefit, death benefit, and maturity benefit which pay the assured for surviving the policy term, the nominee in case the life assured dies, and the assured when the policy matures. All these factors contribute to making the Money-Back policy the superior investment policy.

Also read 

Advantages of a Money Back Plan

Significant Components of 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        

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