Should you select a money back policy for your insurance requirements? This is one question that often crops up in the minds of potential investors/insurance buyers. These are extremely strategic and helpful investments, since they are immensely versatile, enabling both liquidity and financial security at the same time. In a nutshell, money back policies offer the dual advantages of insurance coverage and regular payouts to meet diverse life requirements. So, are they good for you? Let us find out more on this below.
Why and How Money Back Policies are Good Choices for You
How and why is a money back policy a good choice for your requirements? Here’s finding out more below.
- These plans pay a prefixed percentage of the sum assured amount at periodic and specific intervals. They are also known as survival benefits and are given irrespective of whether the policyholder is alive or has passed away.
- There are the advantages of life coverage for a certain tenure along with payouts on a periodic basis. The latter may be used for various needs including higher education, weddings, home purchases, retirement investments, and so on.
- You will have to pay premiums regularly in order to keep your policy active.
- Once the policy tenure concludes, you will get the remainder of the sum assured amount in addition to any bonuses if they are applicable.
- In case you pass away unfortunately within the policy tenure, then your nominee will get the entire sum assured, irrespective of whether the survival benefit has been paid or not.
- The good part is that these plans often share a part of their investment profits with policyholders every year. It will help increase the overall payout and can be useful in outstripping inflation.
- The additional income/return all throughout the policy tenure will become a reliable monetary source for taking care of mid or short-term financial requirements.
- Your loved ones will also be financially secured in case of your untimely and unfortunate demise within the policy period.
- The premiums that are paid will give you tax deductions as per Section 80C of the Income Tax Act (up to Rs. 1.5 lakh). The maturity amount that you get upon the completion of the policy will also be exempted from taxation as per Section 10 (10D).
- You can also add to the coverage by integrating riders such as critical illness, premium waiver in case of disability, accidental death or disability, and many others.
- You can choose your premium payment frequency as per your convenience.
The best part about choosing these plans is that you get returns that are absolutely guaranteed, without any effect due to market fluctuations and volatility. You can use the periodic payouts to take care of diverse financial requirements. These plans enable greater mental peace with life coverage and you can also widen the same with riders. Here’s to giving your investment portfolio a boost with strategic money back policies.
Brandon is the cheif editor and writer at WorldUnfolds.com. With a passion for storytelling and a keen editorial eye, he crafts engaging content that captivates and enlightens readers worldwide.
