Benefits of Money back Policy in India

Over the course of the policy, a money-back policy returns money in the form of consistent payouts. established by the insurance provider. The life insured might receive a lump sum payment at maturity. A money-back policy aids in addressing the liquidity problem.

Advantages of Money-back Plans

Provides liquidity with regular payouts - The Money-Back Policy's primary benefit is that it offers consistent payments known as the survival benefits. Liquidity is important in long-term policies (15 to 20 years). At maturity, the remaining benefits are paid.

Additional Benefit – Some money-back policies might also provide guaranteed additions to the coverage or additional money-backs as additional benefits.

Tax benefits - A person may be eligible for a tax deduction under 80C of the Income Tax Act, 1961 up to Rs 1.5 lakh for premiums paid towards Money-Back Policy.

Secured investment - These investments are safe because the rewards are constant independent of the political climate or market conditions. There are no risks associated with investing money; whatever the insurer has promised to pay you in paper will be guaranteed to be paid out at maturity. As a result, it protects your funds and keeps your portfolio's total risks low.


Benefits of Money back Policy in India


Low-risk instrument - Unlike investments like mutual funds, bonds, and other things that are immediately impacted by stock market fluctuations. Money-Back Policies are low-risk instruments since they offer guaranteed returns at predetermined periods throughout the lifetime.

Life coverage - It is a life insurance policy that offers a variety of options so you can match the family's financial needs. This strategy enables your family to live a respectable life without you.

Conclusion

A Money-Back Policy's advantage is that it offers liquidity in the form of regular payouts over the term of the policy's tenure. At the plan's maturity, the maturity benefit is paid. It offers life insurance, and in the event of the policyholder's demise, the Death Benefit is paid in full to the nominee, regardless of any prior survival benefits.



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