Money Back Policy: Money Back Policy is a way of investing in a policy with a guaranteed money back plan. With a money back policy, you can get returns at regular intervals during the policy term.
Investing for the future is very important if you want to secure your life and the lives of your loved ones. There are many ways to secure yourself financially by investing money in different schemes.
Money Back Policy is a way of investing in a policy with a guaranteed money back plan. With a money back policy, you can get returns at regular intervals during the policy term. Money back policy also provides a life cover which keeps your loved ones financially secure in case of an unfortunate event.
What is Money Back Plan?
Money-back insurance policy is a policy that allows the insured to enjoy the double benefit of investment along with life cover. It is an endowment plan that offers the benefit of regular returns at regular intervals during the term of the policy. In addition, the money back policy also offers the benefit of insurance, in case of sudden demise of the policyholder, the loved ones of the insured can get financial security.
Money back plan eligibility
Some money-back plans may have multiple eligibility criteria such as minimum and maximum age for purchasing the plan, minimum and maximum age at maturity, and many more. These may vary depending on the plan chosen by you. Find a plan that meets your needs.
Benefits of Money Back Plan
At the end of the policy term, you get a guaranteed amount as maturity benefit. You will get higher returns in the form of bonuses, such as a revisional bonus or terminal bonus, which get added to your policy over time. Money back plan provides regular income. The life cover offered in the plan along with the investment provides financial security to your loved ones in case of any untoward incident. Money back policy is a life insurance plan. Therefore, the premium paid is tax-free up to ₹1.5 lakh under section 80C of the Income Tax Act, 1961. Benefits are also tax-free under section 10(10D) of the Income Tax Act, 1961.
Best money back plan
Certified Financial Planner (CFP) Poonam Rungta recommends investing in LIC Jeevan Umang and HDFC Jeevan Sanchay. He says that LIC Jeevan Umang plan is perfect for those who want life insurance that also offers savings. Under LIC’s Jeevan Umang policy, you will continue to get a fixed amount for 100 years.
How to choose money back plan
Now the question arises that how to choose a money back plan? According to experts, before choosing the best money back plan according to your needs, you should identify your financial goals. Similarly, it is also important to choose the policy term as per your financial goals. You need to decide whether you want to invest in long or short term money back plans.
