Things To Consider Before Buying a Money-Back Plan

Money-back plans are not only life insurance plans but also saving instruments because they offer different and important benefits that make them a bit more than just life insurance plans. They offer benefits like tax benefits, survival benefits, regular payouts, maturity benefits, death benefits and also provide an option of various additional riders to choose from for the life assured. People with short-term plans and those that invest in the stock market often invest in this plan to save for their pre-planned goals and to save at least a part of their income.

Investing and saving money for your future is a smart move but investing without proper research is the opposite of smart. Before you decide to invest in a saving instrument for your future, you must compare different plans that are effective and safe to put your money in. You must research different plans and saving instruments and see their past performance and compare them with each other. This way you will have a clear idea of what every plan offers. Before comparing different plans, you must know your necessities and prioritize what you want to save for and how much you want to save. This way, your investment will be highly effective and you will receive the best of your investment. 

Things To Consider Before Buying a Money-Back Plan

After you know and understand your purpose and before you put all your money in a saving instrument, you must consider a few aspects. Some such aspects are listed below -

1. Premium

   You must select a plan such that the premiums of the plan are easily payable. You must consider your financial situation and financial freedom before you invest. You must have a suitable window to comfortably pay the premiums in time without due. You must consider your liabilities like EMI, rent, etc. You must not look to stretch beyond what you can pay before you invest. Discontinuing a policy in the middle can bring you losses. Some plans offer benefits if you can continue the plan till it reaches a certain age before you discontinue the plan.

2. Sum Assured

   You must choose a plan that can provide the amount of money you need at the end of the plan. You must have a clear idea of how much you want to save for the future and compare different plans and choose the one that can provide you the amount you require in the end.

3. Returns

   You must choose a plan that provides you the amount of money you need and also provides high returns. In order to save efficiently, you must choose a plan that can provide you with high returns.

4. Additional Benefits

   A plan that can provide additional riders or add-ons to cover the aspects of your life that are not already covered in the policy itself is another important aspect to consider. These additional benefits can be of great help to you while you try to save and grow your money.

Conclusion

In conclusion, while you decide to be smart and save your money for your future uses and expenditures, you must consider some important aspects before you choose a plan. This will help you save and grow your money efficiently and align the investment comfortably along with your lifestyle.

Must Read: Common Features of Money-Back Plans

Should I Exit From Money-Back Insurance Plan?

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.