What Makes Money Back Policy Worth the Purchase?

True to their name, money back policies provide one with a specific amount at regular intervals. One of the best low-risk savings options, money back plans provides the benefit of insurance coverage as well. What’s important to note is that money back policies provide regular income in the form of survival benefits. In the event of the unfortunate death of the policyholder during the policy duration, the nominee is paid the entire sum assured. 

Let us now take a quick look at some of the key features of money back policies that make them worth the purchase:

• Guaranteed Returns - Money back policies provide guaranteed returns on the survival of the policyholder. Nonetheless, even in the case of the policyholder's death, the nominee gets the sum assured along with accrued bonuses if any.

• Income During the Lifetime - Guaranteed returns from money back policies or survival benefits prove to be a great second source of income for the policyholders. As per their requirements, policyholders can use this amount on a child’s education, house purchase, save for an unexpected emergency and more. 

• Income on Maturity - The ultimate safe and secure savings option, money back policies provide definite returns and sum assured on policy maturity. 

• Income at the Death of Policyholder - In case, the policyholder dies, the nominee gets the sum assured in addition to the bonus if any. It must be noted that since money-back policies offer life insurance cover as well, the latter takes care of your family members when you are not around.

• Bonus Amounts - Bonus amounts are also a part of money-back policies. However, the bonus depends on the company. Note that the bonus comes in the form of a percentage of the sum assured every year and gets accrued. This accrued bonus is then added to the overall payment receivable in case the policyholder dies or policy maturity. The bonus part associated with money back policies majorly depends on the performance of the insurance company.

• Flexibility to Add Riders - Riders are an easy way to enhance coverage. You can easily buy riders like critical illness, personal accidents and more to increase the coverage of your money back policy. 

Final Words

If you are willing to invest in a money-back policy, know that it would be best to compare your choices with respect to multiple factors. Keep in mind that a perfect money back policy will ensure you lower risk, assured returns and an additional tax benefit. Make sure you go with a money-back policy that suits your payout and gives you great benefits. Do not forget to keep your financial goals in mind while making a choice.

So, what are you waiting for? Go ahead and buy your ideal money-back policy today! If you need help, contact the team at InsuranceDekho right away! The InsuranceDekho team would be more than happy to support you.

Must Read: 

Common Features of Money-Back Plans

How Can a Money-Back Plan Help You in Different Stages Of Life?

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.