Step By Step Guide To Purchase A Money-Back Plan

During the tenure of money back plans, regular pay-outs are made which are considered as a percentage of the sum assured. These pay-outs are done only if the life assured is alive during the period. On maturity, the remaining sum assured is received by the life assured. If the insured dies during the term, the entire sum assured is paid to the nominee or the beneficiary of the plan irrespective of the money-back benefits already paid.

A money-back policy is widely opted for by individuals who are looking for regular incomes at regular intervals. People who need assured sums within a short period can buy these plans. The life assured can avail of tax benefits as well as assured sums by investing in money back life insurance plans.

Buying a Money Back Plan

Different insurers offer different money back plans with varying benefits but a few are common. To get the best of your investment, you must follow the following steps before you buy money back plans -

1. Know How Much You Need

Before you start investing in a life insurance plan or a savings instrument, you must know how much exactly you will need at the end of the policy to be prepared for the unforeseen events that may occur in your future. Investing money means being prepared for the financial burdens you may face in the future. 

2. Your Family or Dependant’s Financial Necessity Without You

While buying a policy, you must pick a nominee or a beneficiary. Often, the nominee is the life assured’s family or someone who financially depends on them. You must consider the amount of money they will require after you are gone and carefully pick a plan that provides you with the benefits that will help them survive after you are no longer around.

3. Pre-Planned Goals

Investing in a savings instrument means receiving financial support while trying to fulfil your pre-planned goals and short-term goals. Money-back policies help you build a corpus to invest in your timely goals and help you financially in times of crisis. Defining the amount you might need to fulfil your pre-planned goals will help you invest better.

4. Life Cover

Choose a plan that offers you a long life cover to ensure your safety and your loved ones. This will be helpful if you want to invest efficiently and build the amount of financial foundation to help you get through unfortunate events.

5. Benefits Offered

Different insurers offer different benefits and different terms and conditions to those with common benefits. You must compare all the benefits offered by different insurance companies and pick a plan that suits your lifestyle comfortably without having to stretch beyond your financial window.

Conclusion

In conclusion, you must compare different money back plans offered by different insurers and pick the one that has all the suitable features to help you build a corpus for what you want to save and how much your dependant might need after you are gone.

Also Read:

Need a Good Saving Plan? Buy Money Back Policy

LIC's New Money Back Plan-20 Years Explained

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.