Some important features of money back policies which make them beneficial are described. Money back plans are an ideal investment option that will help you during these crucial times and prevent your life from going haywire.
You make investments and savings to ensure that you and your family are financially secure in life. Financial security is a key factor that ensures one’s overall happiness and stability in life. This is especially true during the various milestones in your life when there are financial liabilities attached. For example, various stages such as your child’s school admission, college education, marriage, long vacations, your retirement and so on, require money in a lump sum. During these stages, you must be ready and prepared with the necessary finances so that you and your family don’t suffer. Money back plans are an ideal investment option that will help you during these crucial times and prevent your life from going haywire. This is because money back plans provide you regular payouts besides insurance savings as they are fixed-duration insurance plans with added savings features.
For this reason, you can bank on money back plans to provide you the necessary finances when you need them the most in your life. This is because money back policies pay survival benefits at regular intervals rather than at the end of the policy term. You may receive the benefits after 5 years, 10 years or whatever time period your policy mentions. Insurance policies typically provide you a lump sum amount if the policyholder dies within the duration of the policy.
Money back policies can be described in simple terms as the plans that from time to time return a specific percentage of the assured sum to the policyholder. There are some other important features of money back policies, which make them really beneficial. These features are:
Survival benefits, which could be the necessarily pillar providing you the necessary finances during crucial milestones in your life.
Also, the death claim includes the total assured sum in case of death of a money back policyholder.
What’s more, this assured sum does not deduct any survival benefit amounts that may have already been paid as money back components.
Additionally, the bonus is also calculated on the full-assured sum in case of a money back insurance policy.
Last but not the least, it is a long-term savings option with a reasonable rate of return, especially since the payout is mostly exempt from tax except under certain situations.
Things to Consider
Hence, there are a few key things you must keep in mind when you go for a money back policy.
These are:
You should first of all ensure that the time you get the money from the investment plan coincides with the time when you actually need the money.
You need to ensure that the loyalty additions of the insurance policy are added to the survival benefits.
The most crucial aspect is that you read the terms and conditions thoroughly and understand each clause well before you purchase a policy.
In addition, you must know the minimum number of years for which the premium is to be paid to keep the policy alive.
You should also analyse the past performance of the company in terms of declared bonuses to get a fair idea of the insurance company’s commitment to its policyholders.
Investment plans comparison can save your time and money 