4 Benefits of Investing in a Money Back Policy

A money back policy is essentially a child money back plan that comes with maturity and survival benefits at the end of the policy term. It’s considered to be one of the best investment plans you can buy for your children as it comes with the dual benefit of both an investment and a life insurance. 
The plan offers regular returns to the insured, or as a lumpsum upon completion of the policy period as per the plan. Moreover, while some plans may offer guaranteed returns, others might offer returns based on the performance of the investment, and sometimes may even include a combination of both of these aspects. This allows you to choose a plan that best meets your financial goals. 
All in all, a money back policy is one of the best gifts you can give your child. So, if you have a kid, and still haven’t really given it a solid thought, it’s time to invest in a money back plan as it comes packed with a range of benefits! 
1.    Regular Payouts
A money back policy comes with regular payouts as survival benefits which offers you a fixed percentage of the maturity benefits being paid out periodically. Moreover, the increased flexibility of being able to choose the amount, and the payout structure makes it even more enticing for serious investors. All you need to do is make regular monthly payments in the plan, and the money back policy will help your child sail through various stages of life comfortably. 
2.    Maturity Benefit 
The entire sum assured, along with the complete maturity benefit is paid out at the end of the policy term which can be a significant amount depending on the amount invested throughout the years. This can help fund your child’s education, marriage, among many other things. This makes a money back plan an investment that you should seriously consider. 
3.    Life Cover
Since a money back policy is also a form of life insurance, in the unfortunate event of passing away of the insured, the nominee (s) are eligible for the death benefit payout. In such a scenario, the entire sum assured along with all accumulated bonuses is paid out. 
4.    Tax Benefit 
You can save up to ₹1.5 lakh in taxes under Section 80 C of the Income Tax Act by investing in a money back plan. Therefore, it’s a smart move that not only helps you save taxes, but invest that saved money into a plan that safeguards your child’s future. 
As you can see, a money back plan not only works like a guaranteed income plan, but also a life insurance policy, and a tax saving instrument all at the same time. This makes it an investment like none other, as the benefits it offers are simply outmatched compared to any other types of investment plans. 
So, now that you are aware of its benefits, let’s look at a few of the most prominent features of a money back plan. 
Guaranteed Returns 
Unlike one of the most popular insurance policies, term insurance; a money back policy comes with guaranteed returns that the insured receives as survival benefit after a certain period. So, the money that you invest comes back to you with higher returns making it a must-have investment. 
Income During Policy Term 
A money back plan offers regular returns by factoring in the survival value which gets added every few years giving the policy holder an extra income. These funds can help you meet any additional expenses such as funding your child’s education, healthcare needs, or even plan a vacation. 
Additional Riders
You can get additional riders that you can opt for when buying a money back plan. These riders help further strengthen the policy by adding cover for things such as critical illnesses, accidents, and even term riders. It’s completely up to you to decide what riders you may want to choose for your plan. 
Bonus Amounts 
Bonuses are one of the best features of a money back plan which adds to the overall income on top of regular payouts. Every policy year, a specific amount of money gets accumulated based on the incentives calculated on the sum assured. This is paid out in addition to the total payout including the sum assured once the policy has matured, or in the unfortunate event of the policy holder passing away. 
A money back plan is the most feature packed insurance product that you can buy right now. So, if you still haven’t there’s no reason to hold back. Max Life Insurance offers the best money back policy in the market that comes with all of the benefits and features we discussed so far that can help you generate a second source of income along with guaranteed life cover for the insured. So, give your children the future they deserve, so that they don’t have to compromise on their dreams, ambitions, and hopes!