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Why Should You Buy A Money-Back Policy?

Published On Feb 15, 2022

Investing should be a big component of your financial goals if you want to enhance your wealth. As an individual, you may have a variety of financial goals in mind, and one of the best ways to attain them is to invest your savings in a variety of investment tools that can help your money grow and allow you to achieve your long-term objectives. A money-back plan is highly advised if you are looking for a product that will give insurance coverage as well as assist you in building a corpus. You'll come across possibilities like ULIPs, endowment plans, and other types of insurance that will not only provide coverage but also assist you to maximize your money. These products, on the other hand, are not covered by a money-back guarantee.

Why Should You Buy A Money-Back Policy?

Reasons to Invest in a Money-Back Policy

The following are some compelling reasons to consider investing in a money-back plan:

Survival advantage

A money return plan will pay you a share of the sum insured on a regular basis after the insurance is fully paid up. You will be entitled for maturity benefits as well as any appropriate incentives if you finish the whole insurance term.

Premium Rider Waiver

If the insured dies before the insurance term ends due to an unforeseen event, the remaining premiums are waived. This means the family or candidate will not have to worry about any additional costs at a time when they are already under a lot of emotional and financial strain.

Deduction from taxes

In addition to other benefits such as the death benefit to which your nominee is entitled in the event of your sudden or accidental death and the maturity benefit to which you may be entitled if you complete the term, you may be able to claim incentives and tax deductions under Section 80C of the Income Tax Act of 1961.

Maturity's Benefit

When the plan reaches the maturity age of the policy and the life insured survives that age, they will receive a payment equal to the amount pledged plus a simple reversionary bonus and, if applicable, the final bonus.


Money return programmes provide the most beneficial quality or facility to assist you in achieving your life and financial goals. It delivers monthly payments as a source of monetary liquidity. This feature assists you in achieving your financial objectives.

Extraneous Riders

The life guaranteed can choose from a variety of extra riders or add-ons if they want to cover aspects of their life that aren't already covered in the plan. These extra rides can also be deducted from your taxes.


Money-Back Guarantees can prove to be very helpful in a crisis. You can rest certain that your family is secured whether you are present or not, thanks to reduced risk and Guaranteed Payouts. To summarise, a money-back plan is the finest investment option because it offers several efficient benefits such as survival, maturity, tax, and death benefits, as well as other riders that can assist you in times of need.

You may also like: Are Money-Back Policies Good For You?

Documents Needed For Money-Back Policy

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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