Why Should You Choose Money-Back Plans?
Updated On Aug 23, 2021
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If asked, nobody would want to see their money grow over a period of time. Investing must be an important component of your financial growth strategy to increase your wealth. You, as a person, may have various financial and life goals in mind, and one of the best and most reliable and suggested ways to achieve them is to put your savings in a variety of investment tools. This can help you save and grow your money and allow you to reach your long-term objectives by providing the financial support you require.
Insurance is also one of the most important aspects, and it is usually a good idea to have one because you would not want your family to suffer financial hardship when you are not around them to help them financially in the future.
You may want to invest in such a product that results in the combination of the best of both worlds. As a result, the only suitable product you can get for investing in yourself is a money-back plan. A money-back plan not only offers you coverage but also makes sure that you are paid a certain amount of money regularly to meet your needs.
You can get a money-back plan for a predefined period of time, but you will have to pay premiums on a monthly basis. In the unfortunate event of your unforeseen death, your nominee or beneficiary will be paid a lump-sum payment known as the death benefit.
4 Reasons To Purchase a Money-Back Plan
A money-back plan is a unique and efficient investment option for a variety of reasons. The following are listed some of those reasons -
1. Survival Benefit
A money-back plan gives you a portion of the sum assured on a regular basis during the policy term when the policy is in full force. If you make it through the entire duration of the policy term, you will be eligible for maturity benefits as well as any incentives that you may be eligible for.
2. Tax Benefit
You can also be able to claim incentives and tax deductions under Section 80C of the Income Tax Act of 1961, in addition to other incentives such as the death benefit that your nominee is has the eligibility to in the event of your sudden or accidental death and the maturity benefit that you might be paid if you endure the term.
3. Maturity Benefit
When the plan meets the maturity age of the policy and if the life assured survives the age of maturity, they will be paid a sum of the sum assured with a simple reversionary bonus along with the final additional bonus if they are applicable.
Money-back plans offer the most helpful quality or facility to be able to fulfil your life and financial goals. It offers liquidity of cash through regular payouts. This feature helps you cover your goal expenses.
In conclusion, if you have short-term goals, or want to save for the unforeseen expenditures that might occur, you must invest in money back plans since they offer all the benefits that you might require to successfully invest and save.
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.