Are money-back plans really beneficial?

Are money-back plans really beneficial? Find out!

Money-back plans have been a popular investment option for many people for a long time now. These plans not only provide life insurance but also act as a savings instrument, providing regular payouts to the policyholder. While some argue that these plans are not as effective as other investment options, others claim that these plans have unique benefits that are well-suited to certain individuals. So, the question remains, are money-back plans really beneficial? Let’s find out.

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Traditional life insurance plans provide a lump sum payment to the nominee in case of the policyholder’s death. However, money-back plans are different in that they provide regular payouts throughout the policy term, regardless of whether the policyholder is alive or not. These payouts act as a sort of income for the policyholder and can be used to meet various expenses such as children’s education, house repairs, etc.

One of the key benefits of money-back plans is that they provide guaranteed returns. This means that the policyholder can be sure of getting back a certain amount of money at regular intervals. This is particularly beneficial for people who prefer a more predictable investment option. Additionally, money-back plans are ideal for those who are not comfortable with investing in the stock market or other volatile investment options.

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Another advantage of money-back plans is that they offer tax benefits. Policyholders can avail of tax benefits on the premiums paid under Section 80C of the Income Tax Act, 1961, and the payouts received are tax-free under Section 10(10D) of the Income Tax Act. These tax benefits make money-back plans an attractive investment option for many people.

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Introducing the Canara HSBC Life Insurance iSelect Guaranteed Future Plan – a guaranteed plan that offers a range of benefits to policyholders. Let’s take a closer look at some of these benefits:

Gift of guarantee – This plan offers a guaranteed payout on maturity. This means that policyholders can be assured of receiving a certain amount of money at the end of the policy term.

Boost your maturity benefit for more assured returns – Policyholders have the opportunity to enjoy enhanced returns that get accumulated during the last five years of the policy.

Payor premium protection cover – In case of the policyholder’s untimely demise, this plan offers payor premium protection cover. This means that the policyholder’s family need not worry about paying the premiums, as they will be waived off and the policy will continue to provide regular payouts.

Pay as you like – This plan offers flexible premium payment options, allowing policyholders to pay premiums at their convenience. Additionally, they can choose the policy term and the frequency of payouts.

Tax benefits– This plan offers tax benefits on premiums paid and payouts received, making it an attractive investment option for many people.

Conclusion

In conclusion, money-back plans are indeed beneficial and offer unique benefits that make them ideal for certain individuals. The Canara HSBC Life Insurance iSelect Guaranteed Future Plan is one such plan that offers a range of benefits to policyholders. To know more about this plan and its features, visit the website today. 

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