Interim Funds Plans
You invest to safeguard your future from any crisis; so you need to make the right kind of future investments to achieve certain goals in life.
To invest better and safe, you need to understand investments, risks, inflation, systematic planning, etc.
Child Money Back Plan
A child money back plan is a conventional money back plan that uses survival incentives to meet the needs and requirements of growing children.
Educational requirements, studying abroad, marriage, and other factors can differ from one child to the next.
What is money back insurance plan?
In a money back plan, the insured person gets a percentage of sum assured at regular intervals, instead of getting the lump sum amount at the end of the term. ... In case of death of the insured person, the nominee gets the entire sum assured and the survival benefits are not deducted.
A money back plan provides the full sum assured on maturity. The money back policy is a good way to get more than just the maturity amount as in addition to it, the insured also keep receiving the survival benefits over the term of the policy. This is in addition to the bonus they receive at the end of the plan period.
A money back policy is a type of life insurance plan that helps the insured person to get a percentage of sum assured at regular intervals, instead of getting the lump sum amount at the end of the term. It is an endowment plan with the benefit of liquidity.
This policy is suitable for risk-averse individuals who wish to save through an insurance plan and also maintain liquidity throughout. In case of death of the insured person, the nominee gets the entire sum assured and the survival benefits are not deducted.
What its about ?
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Features of Money Back Policy
1. Guaranteed Returns
Money back plans mean that money is returned to the life insured as a survival benefit after a set period. When the policyholder survives the policy term, the money back is guaranteed. In the event of the policyholder's death, the nominee receives the amount guaranteed as well as any accumulated bonuses, if any. This is also applicable to child money back plans as well.
2. Income During Policy Term
Money back policy ensures that the insured will earn returns or the amount promised every few years. Thus, the survival value is accumulated every few years and provides policyholders with a second source of income.
These funds may be used to take a vacation, save for an unexpected occurrence, save for a down payment on a house or apartment, or pay off the children's school or tuition fees. As a result, money back policies have an advantage over other types of life insurance on the market.
3. Riders to Increase Cover
Most insurance providers sell optional add-on riders that the insured can ‘add-on' to their money-back policy, as the name implies. These riders may be related to medical conditions like life-threatening illnesses, personal accidents, or term riders.
4. Bonus Amounts
The Money Back policy even contributes to the income of the insured by way of a bonus. Each year, the incentive is calculated as a percentage of the sum assured by the insurance provider, and accumulated. When the policy matures or if the policyholder passes away, the accumulated bonus is added to the total payout due.
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Benefits of Money Back Policy
1. Survival Benefit
Over the course of the policy, money is paid to the policyholder every few years. The payment begins within a few years of the policy's inception and lasts until the policy's maturity.
2. Death Benefit
In the event of an unfortunate incident, the policy nominee will receive the death benefit. This includes the sum assured as well as any bonuses accumulated on the money back policy. Notably, this does not include the survival bonus, which is only paid out to the insured while they are still alive.
3. Maturity Benefit
The insured individual receives the maturity benefit when the money back plan matures, and it consists of:
Sum Assured: It is the complete cover amount that the insured selects at the start of the policy.
4. Tax Benefit
Section 80C of the IT Act allows you to deduct up to Rs. 1,50,000 in life insurance premiums from your taxable income per year. In addition, Section 10(10)D exempts the maturity benefit of the money back policy from taxation.
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Why Do You Need to Buy Money Back Policy?
Money back plans combine the benefits of an insurance policy with that of investment, meaning that the policy earns an income for the policyholder rather than simply delivering a lump sum in the event of his or her death.
These policies include a guaranteed return on investment, as well as annual payouts and insurance coverage, making them an excellent choice for those seeking both security and income.
As a result, policyholders receive a stable and guaranteed return on investment, as well as the ability to increase their wealth through investment opportunities.
Depending on your life stage, when you invest, the different types of money back, plans can be smart. For instance, a child money back plan can help you secure their future wisely