Save Money Today! Know How!

For people looking for a guaranteed return policy, a money back policy is one of the best insurance policies in India. This policy also includes a guaranteed payout after a certain number of years of investment. When it comes to life insurance, this policy performs admirably. If something unfortunate happens to the policyholder, such as the death of the life assured, the money is distributed to the policy’s nominees.

Key Benefits of a Money Back Policy

A money-back policy has numerous advantages. As a result, they continue to be the most popular insurance product among investors of all ages and income levels. Here are some of the ways a money-back policy can help you.

Regular Payouts

This is one of the most significant benefits of the money-back policy. Returns are only realized after a few years of investment. In long-term policies, such as those lasting 15 or 20 years, the amount is paid out every few years and added to the total. The remaining benefits are paid when the plan matures. 

The company provides this benefit in two stages. The first step consists of the amount paid every few years during the policy’s tenure, and the second step consists of a final payout that is larger than previous payouts and is provided at the time of maturity.

Comes with a low-profile risk

Other investment products, such as mutual funds, stocks, bonds, equities, and so on, are affected by market fluctuations. A money back policy provides you with guaranteed returns at regular intervals. Such plans are dependable and hassle-free due to the regular income and insurance coverage.

If you prefer to keep a low-risk appetite, this could be a good option for you. Money back policy enables you to mitigate portfolio risk. They can be used to diversify your investments and build a well-balanced portfolio of volatile and non-volatile instruments.

Bonus at the Time of Maturity

At the time of maturity, the bonus increases the overall payout. There are two types of bonuses: reversionary bonuses and additional bonuses. The former is declared on the sum assured each year and is added to the overall bonus that the policyholder receives at maturity. The latter part is declared and given by the company as a final additional bonus or in the form of a reward to the policyholder at the time of maturity.

Tax Benefits

If you want to know how to save income tax on investments, money back policy is the way to go. If you have paid all of the premiums under the money back plan, you are eligible for a tax deduction of up to Rs. 1.5 Lakh under Section 80C of the Indian Income Act. 

You can reduce your tax liability by choosing a money back policy. This will result in an increase in money in addition to survival benefits, sum assured, bonus, and maturity sum assured.

Life Cover

A money-back policy is a type of insurance. To meet the financial needs of your loved ones, you can select a life insurance policy from a variety of options. Such plans allow your family and loved ones to live a stress-free and dignified life while you are away. It’s an efficient and appealing investment that will enable you to plan for your future outcomes.

Secure Investment

It’s an excellent way to protect your investments. This policy guarantees returns, allowing you to live your life without worry. This policy also serves as a safeguard against any risk to your fund, which you will undoubtedly require in the future. It also lowers the risk associated with your investment portfolio.

5 Best Money Back Policy In India

One of the primary reasons for selecting money return insurance is that it provides a consistent flow of income at pre-specified intervals, allowing the insured to cover his/her costs at various stages of the policy duration. Furthermore, under this plan, one receives a guaranteed return on investment and the opportunity to diversify their wealth through investment opportunities.

With the information provided above, it should be clear that this is an excellent plan for people who want the benefits of both insurance and a steady source of income. So, what comes next? If you want to invest in a money back policy, keep reading to learn about the top money-back plans available in 2021.

1. Money Back Advantage Plan by Canara HSBC Oriental Bank Of Commerce

The Canara HSBC OBC Life’s Money Back Advantage Plan is both a savings and a protection plan. Non-linked participation and limited premium payment features are included. 

It offers guaranteed payouts regularly throughout the policy term, as well as bonuses such as maturity, survival, tax, and death benefits. This plan can be used to meet the life assured’s short-term goals regularly.

2. HDFC Life Super Income Plan

The HDFC Life Super Income Plan provides guaranteed income and asset appreciation for a period of 8 to 15 years. If you select the single payment option, you will begin receiving a regular income in the second policy year and continue until the insurance term expires.

3. Edelweiss Tokio Life G CAP Plan

GCAP assists you in accumulating wealth so that you can achieve your lofty goals and enjoy the fruits of your labour. This plan includes a fully guaranteed maturity benefit, death benefit, and Guaranteed Accrual Addition.

4. Edelweiss Tokio Life G CAP Plan

GCAP assists you in accumulating wealth so that you can achieve your lofty goals and enjoy the fruits of your labour. This plan includes a fully guaranteed maturity benefit, death benefit, and Guaranteed Accrual Addition.

5. Money Back Plus Plan by Tata AIA Life Insurance

The Tata AIA Life Insurance Money Back Plus Plan is a life insurance and savings plan. Guaranteed payments are made at regular intervals throughout the plan’s life. This plan includes an accident benefit for added security.

Wrapping It Up

One of the more prudent ways to arrange your life investment cover is with a money back policy to complete the policy. You not only get money back at regular intervals during the policy term, a sum assured at the end of the policy term, and bonus amounts as stated by the insurer, but you also get adequate insurance coverage for the duration of the policy. Purchasing a fulfilled money back policy makes sense for an investor looking for a cover that provides guaranteed returns as well as returns at various stages of life to pay for high future costs.