A money back policy is suitable for individuals who are looking for regular incomes at specified intervals. People who want to get assured returns within a short period of time can buy these plans. Individuals can get tax saving benefits as well as assured returns by investing in money back insurance plans.
Why do you need to buy a money back policy
A money-back policy provides lump-sum benefits during the tenure of the policy. This feature ensures that you will have a regular flow of income no matter what your tenure period is. The money that is paid back on a regular interval is a percentage of the total sum assured. The percentage may differ from company to company. A traditional life insurance policy may be one of the best investment options. However, it may not be able to fulfil your sudden financial needs as the sum assured is released only after the tenure ends. This is where the money-back policy proves to be quite beneficial. Now let’s understand why you need it:
- A money-back provides both survival and death benefit along with bonuses.
- It provides a regular flow of income during the tenure period.
- The plan also offers life insurance cover
- This plan is one of the best options for individuals who are looking for a risk-free policy. A money-back policy involves low risk.
- A money-back policy proves to be the most helpful when it comes to tackling a sudden financial problem.
- In case the insured individual passes away during the tenure period, the entire assured sum goes to the nominee.
- You may get additional tax benefits as well.
A money-back policy also involves rider benefits.