Why Is Money Back Policy Required?
Published On Aug 21, 2021
Were you in search of a life insurance plan that pays you a particular sum of money during the policy term? Did someone recommend a money-back policy to you to get your purpose resolved? If so, you must definitely consider buying a money-back policy. Remember, a money-back policy will resolve your liquidity problem by providing you with a specific percentage of the sum assured during the policy period. Let us understand the money-back policy in detail.
What Is a Money Back Policy?
A money-back policy is a life insurance policy type that gives money-back at regular intervals. This money-back is a certain percentage of the sum assured amount chosen by the policyholder. Moreover, this money-back is paid during the plan tenure. It must be noted that money-back pay-outs are referred to as Survival Benefits. Once the policy matures, the remaining sum assured is paid with vested bonuses. In the event of the unfortunate death of the life insured during the policy duration, a full sum assured amount is paid even if the survival benefits have already been paid. It is one of the key features that make money-back policies unique.
Why Do You Need a Money Back Policy?
A money-Back plan, being a savings plan helps you provide for yourself and your family. Especially, when things may not go the way desired in the financial aspect, a money-back plan would help you receive funds on a regular basis till the end of the policy term. All in all, money-back policies are the best saving solutions you can rely on.
Here are a few reasons why you should invest in a money-back policy:
- Life Cover - Money back policies may be the best way to manage expenses, but what’s also notable about them is that they come with a life insurance cover that helps in safeguarding the policyholder and their family against the unpredictability of life.
- Survival Benefits - A money back plan provides survival benefits in the form of a percentage of the sum assured. The survival benefit is provided at specified intervals and along with maturity benefit and accrued bonus.
- Liquidity - The prime feature of a money-back policy is that it pays a certain amount of the sum assured. This amount is provided at regular intervals during the policy duration. This feature helps one in resolving the concern of required liquidity, thereby allowing them to plan their finances in a better way to get all financial goals covered without compromising on any aspect.
- Risk-free Returns - If you are not a risk-taking individual, a money-back plan is an ideal choice for you. Since there is no risk involved, one can opt for the best money back policy as per their choice.
That said, what are you waiting for?
Go ahead and buy the best possible money back policy to expand your set of benefits.
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.