Why Should I Buy a Money-Back Plan?

A money-back policy is a life insurance policy that offers regular payouts and other benefits like life cover, additional riders or add-ons, benefits like survival benefit, death benefit, maturity benefit, and tax benefits. People with short-term goals generally opt for this plan to be able to get some financial help while fulfilling their goals. 

The money-back policy is widely chosen due to the benefits that come with it. It has a good return rate and a long life cover. It ensures that your family is not left in financial debt if the incident of your sudden death occurs. This plan not only helps you save but also helps you understand financial stability and prioritize major events.

Why Should I Buy A Money-Back Plan?

There are undoubtedly many positive aspects to this plan. Some of those positive aspects are:

• Survival Benefit

An amount of the sum assured and the Applicable bonuses are paid to the life assured if they survive the whole term of the policy to celebrate the anniversary. This helps the life assured gain some returns and save for their future or invest in their immediate major goals.

• Maturity Benefit

When the policy matures, an amount of the sum assured along with the applicable bonuses are paid to the life assured to celebrate the milestone and help them save or invest in their goals. This is the aspect of this life insurance policy that makes it a saving instrument.

• Death Benefit

In case of the sudden death of the life assured, the nominee of the policy is paid the entire sum assured, and bonuses if all the required premiums are paid in time and no payments are due. This ensures that the family of the life assured does not stay indebted financially to anybody even after the life assured dies. This benefit helps the family of the life assured cover any immediate expenses or even to save for their future.

• Tax Benefits

All the tax benefits under section 80C of the Income Tax Act, 1961 apply to the money-back policy.

• Regular Payouts

The life assured receives a portion of the sum assured at regular intervals after a certain period of time from when the policy term begins. This helps the life assured financially cover the expenditure of any pre-planned goals. They can also choose to save it for their future or invest it in any other plan to gain even better returns.

• Life Cover

The policy offers a long life cover in order to make sure that you and your family are financially secure in case of any unforeseen unfortunate events. It is the amount the nominee receives if any unfortunate event occurs.

• Additional Riders

To cover the aspects of your life that are not covered through the traditional policy, you can choose to add additional riders that help you cover the aspects you want to cover. Money-back plans come with additional rider benefits to be able to provide all-around security.

Conclusion

In conclusion, if you want to stay financially stable at all times and need help in saving and growing your money, you must invest in a money-back policy. It helps you safely grow your money and supports you financially in times of crisis.

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.