All of us want good returns on the investments we make. However, the sole purpose of investment is to reap the benefits in the long run. With that in mind, money back policy was curated. Money back policy is a carefully crafted product that is offered to you, providing you with the benefit of both investment & protection at once. If you are someone looking to safeguard your loved one’s financial future, then a money back policy is the solution that is your best bet.
A money back policy works in a way wherein you pay the premium until the term is discussed or planned as per the policy & then, as soon as the premium payment period ends, you receive the regular income stream. Towards the end, you will have received the amount along with some bonus from the money back policy. In addition, the insurance or protection part of the money back policy will provide the insured & immediate family members with a lump sum amount in case of an unprecedented emergency.
Here are some of the major reasons why it is the best time to buy a money back policy:
- The returns accumulate over a period of time, allowing you to accomplish all your big-ticket dreams like buying a home or securing your child’s education & future or securing a relaxed retirement life.
- Just like many investment policies, you receive bonuses in a money-back policy too. These bonuses are added to your policy from time to time & may be in the form of a revisionary bonus or a terminal bonus.
- Having a single source of income is not a wise choice in the current day & age. It is imperative that you have multiple sources of revenue. So as to not only help you lead a good current lifestyle but also help you reach your aspirational lifestyle. This is where a money-back policy helps you with it.
- A money-back policy comes with a dual benefit of investment & protection & this provides you with a life cover as well.
- Just like other investment policies, you get a tax benefit of up to 1.5 Lakh when investing in a money back policy. These are under the Income Tax Act 1961.
- A money back policy is a no-brainer for individuals with a low risk appetite as this policy has a very minimum risk profile.
- This is also an easy policy for you to buy into because it provides you with the added advantage of getting your family’s life secured in case you meet with an accident. The sum assured is a lumpsum amount that is awarded to your family.
- The money back policy also brings you the liquidity that you need. Having liquid cash can prove to be a knight in shining armour when one is facing an emergency.
- Money-back policies also come with riders that can sweeten the deal to enhance the policy you are buying.
Investing in insurance & investment policies is a good choice. However, it requires research & understanding. Therefore, do consult professionals in order to understand & make the best financial choices.