Reasons to Purchase A Money-Back Policy!
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Money-back plans provide you the benefit of both insurance and investing. In addition to providing you with life insurance, they invest a portion of your payments in the market. You may also use a money-back plan to save for your future objectives while simultaneously ensuring the protection of your family after you die. One advantage to mention is that investing in money-back plans is less hazardous than other investment products. They put their money into cash bonds and assets that are not impacted by market changes. For all of these reasons, investing in a money-back policy is a pretty secure bet. Continue reading to learn more about these ideas!
Reasons to Buy a Money-Back Policy
The following are some important reasons why you should consider investing in a money-back plan:
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Survival Advantage
When the insurance is in full force, a money return plan pays you a percentage of the sum insured regularly. If you complete the whole policy term, you will be eligible for maturity benefits as well as any incentives that may be available to you.
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Premium Rider Waiver
If the policyholder dies before the insurance term expires due to an unforeseen event, the remaining premiums are waived. This means that the family or candidate will not have to worry about any additional expenditures at a time when they are already dealing with a great deal of emotional and financial hardship.
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Tax Deduction
You may also be able to claim incentives and tax deductions under Section 80C of the Income Tax Act of 1961, 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.
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Maturity Advantage
When the plan reaches the policy's maturity age and the life insured survives the age of maturity, they will be paid a sum of the amount promised plus a simple reversionary bonus, as well as the last bonus if applicable.
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Liquidity
Money return plans provide the most beneficial quality or facility to assist you to achieve your life and financial goals. It provides monetary liquidity via monthly payments. This function assists you in meeting your financial objectives.
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Additional Riders
If the life assured wants to cover aspects of their life that are not already covered in the plan from the start, they may pick from a list of extra riders or add-ons to assist them to cover. These additional rides are also tax-deductible.
Conclusion
Money-Back Plans might be of assistance in times of need. With reduced risk and Guaranteed Payouts, you may be certain that your family will be covered whether you are there or not. To summarise, a money-back plan is the greatest investment option since it offers several efficient benefits such as the survival benefit, maturity benefit, tax benefit, death benefit, and extra riders that can assist you in times of difficulty.
Also read - How Do You Choose A Reliable Money-Back Policy?
