Whether you want to save money for retirement or build a legacy for your future generations, the Indian financial market offers an abundance of products intended for wealth accumulation. There are several financial investment plans tailored as per your requirements.
With these financial products, you can either choose to invest in market-linked equity assets or choose a safer debt-based alternative instead. In case you’re a risk-averse investor, a money back plan is a considerably safer and reliable option for you.
These plans are quite popular in India as they provide you with consequent pay-outs in case you survive throughout the policy tenure. For people looking to gain a guaranteed return on their investments and build a recurring income stream at the same time, these plans are certainly the perfect option.
In comparison to a traditional life insurance policy, a money back policy includes a “Survival Benefit” that rewards you for surviving throughout your policy’s tenure. Moreover, even in the event of your unfortunate demise, your nominee will receive the whole maturity amount as promised.
Unparalleled benefits of money back plans
Money back plans act as both life cover and savings accumulation tools in a single product. Along with other exciting benefits of these plans, they can be extremely helpful in your financial planning. Here are some of the top benefits of money back plans:
Survival Benefits and Greater Liquidity
These plans are designed in a way to provide you money every few years throughout the tenure of your policy. This promotes greater liquidity and ensures you have access to adequate funds when needed. Moreover, these pay-outs are part of the survival benefits offered under the plan.
Financial Safety and Death Benefit
In the event of your unfortunate demise during the policy tenure, the insurer will pay an assured death benefit to your chosen nominee. This makes sure that your family is financially safe, regardless of whether you’re around to take care of them or not.
Maturity Proceeds
Money back plans also provide maturity proceeds, which means as soon as your policy matures, you’ll be able to gain the sum assured in addition to any accumulated bonuses in the policy. All this adds up to your final corpus and makes it even larger.
Tax Benefits
These plans offer tax exemptions and benefits as per various sections of the Income Tax Act of India. The premiums you pay for the plan are eligible for deductions of up to Rs. 1.5 Lakh and the death benefit is free from any kind of taxation.
Best Money Back Plans in India
Canara HSBC OBC Life Insurance Money Back Advantage Plan
With various cut-through features like life-stage milestones and lifestyle enhancement, the Money Back Advantage plan by Canara HSBC OBC Life Insurance is an ideal option to take care of your financial needs. The plan offers comprehensive protection against death for sixteen years.
Moreover, the payment term for this plan is only ten years, that too laid out as per your financial obligations and payment preferences. Throughout the tenure, it promises three guaranteed pay-outs of 15% of the sum assured to help you meet your financial goals.
ICICI Prudential Cash Advantage Plan
The ICICI Prudential Cash Advantage plan lets you augment your regular income and provide guaranteed cash pay-outs. It only requires a single lump-sum premium and begins right a year after your premium payment term is over.
Additionally, you can choose from a host of premium payment options at your convenience. There’s also a death benefit that provides all-around protection to your family in the event of your unfortunate demise.
HDFC Life Super Income Plan
If you’re looking for assured income and asset appreciation, this is one of the best money-back plans available in the market. Available for 8-15 years, the plan also allows you to start receiving regular income right after a year of purchase by choosing their single payment option.
There are even terminal and revisionary incentives that help you grow the monthly revenue that you gain from this plan. Moreover, it is also eligible for tax benefits under the prevailing laws of the Income Tax Act of India.
The policy can also be used as collateral for loans in banks, just in case you need financial assistance.
Tata AIA Money Back Plus Plan
The Money Back Plus plan by Tata AIA life insurance offers both insurance and savings benefits at the expense of a single plan. You gain assured payments at regular intervals throughout the tenure of this policy and even enjoy additional coverage with an inbuilt accidental death benefit.
There are three different payment modes to choose from, which makes it even more convenient for you to pay the required premiums. The plan also offers two additional bonuses and allows you to enhance your coverage through additional riders as well.
Bajaj Allianz Cash Assure Plan
With lump-sum pay-out options at specified intervals, the Bajaj Allianz Cash Assure money back plan is a great companion for all your insurance and savings needs. You can purchase this plan for four different tenures, viz 16, 20, 24, and 28 years.
The plan also offers additional maturity benefits to help you sustain a financially secure lifestyle in case you survive throughout the policy tenure. Death benefits can also be availed with the plan to secure your family and dependents from financial burdens.
The Takeaway
One of the best ways to ensure financial security in the future is by starting accumulating as early as possible. With the splendid features and benefits of money back plans, you can ensure that your and your family’s future is financially cushioned.
Therefore, make sure you do your research and also consider the money back policies stated above to choose the one that resonates the best with your financial requirements. With a good money back policy, you can enjoy a completely risk-free savings experience and be able to accumulate funds for your future with utmost reliability and security of funds.
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