How can Money-Back Plans Help You Achieve Your Financial Goals?

A money-back plan can help you through hard times reaching your goals financially through the benefits it comes with. It helps you by paying you a part of the sum assured, helping your family be financially stable in case you are gone, an extra amount at certain milestones along with bonuses. It provides perfect bonuses and benefits that can help you financially to fulfill your goals.

These plans offer a long life cover, additional riders, survival benefit, maturity benefit, death benefit, good returns, and applicable bonuses. They help you get through times of crisis and help you attain financial stability. This plan is widely chosen due to the benefits it comes with. It is opted by people with short-term pre-planned goals and people who invest in stocks to save at least a part of their profits. 

5 Ways Money-Back Helps You Financially

Money-back policies come with many benefits that help you gain financial freedom and stability. They help you grow and reach your financial goals smoothly. Five of the benefits that come with money-back policies are -

• Survival Benefit

The plan offers a proportion of the sum assured at regular intervals of time for reaching certain age milestones. The life assured receives a bonus for surviving the whole duration of the policy term. This bonus is called the survival benefit. This helps the life assured save or invest in their financial future and fulfill their goals financially. This comes with all the additional applicable bonuses if all the premiums of the plan are successfully paid.

• Maturity Benefit

When your policy matures and all of your premiums are successfully paid without due, you will be paid a maturity benefit. It consists of a portion of the sum assured and all the bonuses that can be applied. This is an extra financial push for you to reach your goals, be it financial or your pre-planned major events.

• Additional Riders

If the life assured wants to cover extra areas of their life that are not already covered in the policy they chose, they are given an option to choose from different add-ons also called additional riders. These riders offer benefits and services to cover the areas of your life comfortably.

• Long Life Cover

Money-Back plans provide a long and secure life cover. They even make sure that your family is not left money-bound to anybody or any organization once you are gone provided you pay all the required premiums on time and ensure your family’s financial stability through a supporting benefit called the death benefit along with all the applicable bonuses. 

• Tax Benefit 

Money-back plans come with a tax deduction feature. It depends on the plan you choose of how much deduction is possible. Under section 80C of the Income Tax Act, 1962, you can avail of a tax deduction on a money-back policy.

Conclusion

Money-back plans are a great way to invest to save and grow your money to reach your financial goals. They provide you great returns and amazing benefits that help you save for your pre-planned goals from time to time. All the benefits and bonuses that come with money-back are tax-deductible. This gives you more to save.

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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.