Why Should You Purchase a Money Back Plan?
Published On Nov 16, 2021 10:00 AM By InsuranceDekho
Table of Contents
When you’re uninsured, it can feel like your life is precariously balanced on a single thread. It’s never easy when the unexpected happens but life insurance gives you peace of mind knowing that if anything does happen, your family will be taken care of. When you purchase a money back plan, you are purchasing peace of mind. Not only does a money back plan give you the assurance that your event will be covered in the unfortunate event of a cancellation. It also gives you the comfort to host with confidence knowing that if attendance is lower than expected or an unforeseen circumstance occurs, your guests will still receive a refund.
Money back plans are typically used by business owners who want to protect themselves from unexpected expenses and any potential issues with their business revenues. Money back plans are good ones to consider because they promise to pay out 10-15% of premiums in case you die before maturity. This means either your beneficiary receives the money or the company holds it in trust until they do. Either way, these plans give peace of mind and let you sleep well at night knowing that people around you will be looked after if something should happen.
Why Do You Need to Purchase a Money Back Plan?
While investing in a money back plan adds positively to your financial status and stability, you must know why exactly you have to invest in a money back plan. Below are 4 main reasons you must purchase a money back plan for yourself -
1. Regular Payouts
Money back plans come with the greatest financial stability ensuring- Liquidity. Money back plans offer you greater rates of return and support you financially to fulfill your life goals regularly through one of their benefits called regular payouts. You will start to receive these payouts after a certain period of your investment and you will be paid at regular intervals from then.
2. Risk Reduction
The sum assured is predefined to the customer in a money back policy. This means that they are sure to get the sum that has been assured by the insurer to the customer irrespective of the additional bonuses and cutoffs at taxes. This factor is all you need if you are paranoid about what you receive and if you worry about investing at all.
Money back plans differentiate the sum assured and the bonuses and give you a clear image of what you invest and what you receive. They give you a guarantee that you are paid what you were promised irrelevant to the bonuses you receive additionally.
There are many benefits to purchasing a money back plan but here are the main benefits you can enjoy while investing in a money back plan -
- Survival Benefit: This benefit allows the insurer to pay you a portion of the sum assured along with any applicable bonuses if you manage to survive the entire period of the term of the policy you have purchased.
- Death Benefit: This benefit guarantees the financial stability and safety of your family after you are gone. This helps the family to clear any financial bondage or immediate expenses after your unforeseen or accidental death. This way you can look after your family even after you are no longer around.
- Maturity Benefit: Maturity benefit is paid to you when you survive the maturity term of the policy you have purchased. This benefit helps you pay off your near goals in life or save more for the future.
- Tax Benefit: Money back policies are capable of availing of tax benefits under section 80C of the Income Tax Act, 1961.
In conclusion, money back plans are a great way to gain peace of mind as well as invest smartly. These plans help you cover your expenses and fulfill your life goals from time to time. There are many reasons why you must purchase money back plans but the main reasons are they have shown growth in profiles and hassle-free experiences in the past with a decent rate of returns and guaranteed bonuses.
Also read - Tips To Purchase A 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.