Money Back Plan
True to its name, a Money Back Policy promises to pay back a certain sum at regular intervals. Besides a steady flow of income, a money back plan also offers financial protection in the event of death of the policy holder during the policy term. Thus, it can be tabulated as a saving cum protection plan that guarantees regular paybacks.
Money Back Plan offers numerous benefits including:
- Low Risk Income: Unlike mutual funds and equity investments that speculate on the volatile economic situation, the money back policy plays on low risk. Therefore, it is the best form of investment for low risk appetite investors.
- Regular Income: A Money Back Policy comes with an in-built feature of regular returns. Loyalty Addition + pre specified percentage of the Sum Assured is returned back at stipulated time periods
- Insurance Cover: A Money Back Policy also offers a life cover to the policy holder. In case of an untoward event, the death benefits are paid to the nominee.
- Assured Return: The Money Back Policy offers an assured return. So, we do not run a risk of losing out on our investment. In fact, the investment grows at a steady rate over a long period of time.
- Tax Benefits: All premiums paid and claims received under a term insurance plan are exempted under Section 80C and Section 10(10D) respectively of the Income Tax Act 1961.