It’s no secret that saving money is key to a healthy financial future.
But what if you could make your savings work even harder for you?
A money back policy can help you do just that! Here’s how it works: you invest in a policy that not only provides you cover but also gives back the money invested after maturity.
This gives you the peace of mind of knowing that your investment is safe, while also allowing you to enjoy regular returns. So why wait? Start saving today!
You must have a regular income so that you can meet your family’s needs and stay ahead of your expenses. Money back policy plans provide the peace of mind that your lifestyle will remain unchanged after retirement by providing smart regular income.
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Benefits of money back policy
Wealth Creation
As an investor, you can choose among various plans with different risk profiles to generate higher returns. The long-term nature of these plans makes it possible to amass huge wealth.
Financial Security
As a policyholder, you get a full life cover. It means in case of uncertainties, you and your loved ones will have a secure future.
Secure Retirement
Most people don’t think of retirement planning. Money-back policy plans are best suited for a safe and happy retirement. You are ensured of getting a huge wealth that you created for yourself by investing in good plans.
Tax benefits
The premium paid is eligible for tax exemptions. This helps you not only accumulate wealth but also save more in terms of tax benefits.
Discipline
Having a systematic investment plan in place builds a discipline. These habits help you become a better investor going forward. You can plan your investment for various events in your life – child marriage, loan repayment, child education, etc.
Let’s understand how money back policy can help you get regular returns
Example 1
Ashok, a 40-year old man is looking for an investment plan that will provide him with money at regular intervals.
He wants it so he can achieve his lifestyle goals such as upgrading household goods and taking care of family in case anything happens to him – whether by death or other accidents along the way!
Ashok estimates that he would require money in various stages.
- Ashok planned to save through the Money Back Advantage Plan of Canara HSBC Oriental Bank of Commerce Life Insurance with a Sum Assured of ₹ 10 lacs.
- The premium he pays annually for 10 years is only 1,19130 before taxes and cess. He now gets significant life cover which protects his family for the entire term as well as reversionary bonuses added till the date of death!
- The guaranteed money back policy payouts are as follows: ₹ 150,000 at the end of the 5th,9th, and 13th year.
- Finally, a whopping total sum is assured on the maturity of ₹ 550,000.
With the help of a saving investment plan, Ashok was able to plan for major events in his life.
He completed all his life goals thanks to regular returns given by the money back policy.
Example 2
Now let’s see how Vikas made the most out of the saving investment plan.
Mr. Vikas, a 35-year old father of a child named Sagar who is 2 years old plans to provide his all-around development in hobbies and sports training as well as coaching classes for him.
He also wants the family to be financially protected if anything happens during their lives together before graduation or even later on down the line after entering adulthood.
They may need more money than what was originally planned out beforehand.
It seems like an awful lot depending on how big your bank account must have been since there are different types of risks involved.
- With the Money Back Advantage Plan, Mr. Vikas plans to save through 5 lacs.
- The premium he pays annually for 10 years will cost him ₹ 59,580 (including taxes).
- This is a significant amount that helps provide life cover in case anything ever happened to any member within his family during their term – which can be extended up until death!
- Vikas will be able to enjoy a luxurious life with his money. He gets ₹ 75,000 each at the end of the 5th, 9th, and 13th years.
- He also gets a Guaranteed Sum Assured on Maturity of ₹ 275,000.
Vikas was able to smartly generate regular returns for his child’s developmental stages.
He was able to create sufficient corpus for his son’s hobby classes, sports training, coaching, and even his graduation.
When you have dependents, the last thing on your mind may be financial security. But with a saving investment plan – which can include options for any large expenses of family in future- this is one worry less!
Before choosing monthly payments though it’s important that both current situation and planned lifestyle assumptions match up accordingly so don’t just pick something because feels right at present or assume things will stay exactly like how they are now.
A money back policy offers many benefits, as discussed at the beginning.
Conclusion
For all saving investment plans, most banks, such as Canara HSBC Oriental Bank of Commerce Life Insurance, have a set premium payment term. The term is 15 years long.
Anyone between the ages of 18 and 55 can apply for the plan to help them plan for their future. The policy has a 25-year term, and thus, the maturity age varies from 43 to 80 years old.
