A child money back plan is the best way to safeguard your child’s future milestones. It offers the dual advantage of both an investment as well as a life insurance cover giving the investor the best of both worlds. The investments that you make month-on-month over a period of time come with exceptional returns on investment, making money back plans one of the best investment options to consider.
In case you have never heard about it or have not yet considering investing your money in, then it’s time to give it a thought as we give you a brief introduction to child money back plan and the features that it comes with.
Regular Income During the Policy Term
A child money back plan comes with regular returns that is based on survival value. A specific amount of sum is added to the money back plan every few years giving the insured access to additional funds to meet their financial goals. This fund can be used for different things such as education, healthcare, and even to fund a vacation.
Guaranteed Returns
Unlike other popular insurance plans such as term life, which is one of the most popular ones; a child money back plan comes with guaranteed returns on investment. While a term plan doesn’t include any savings or maturity component, a money back plan is the exact opposite and offers incredible value for money. Under the child money back plan, the insured receives guaranteed returns as survival benefit after a set period while also staying protected under the life cover it offers.
Additional Riders
One can opt for various riders under the money back plan. These riders may include coverage for critical illnesses, accidents, and may even offer term riders as add-ons. The best part is that you can choose the riders as per your individual preferences that lets you customize the plan as per the financial goals you have envisaged.
Bonus Amount
Bonuses are a part of a child money back plan that add to the overall income on top of the regular payouts that you receive. Every policy year, a particular sum of money gets accumulated as a bonus based on the incentives calculated on the sum assured. Once the policy has matured, or in the unfortunate event of the policy holder passing away, the insured or the nominee (s) gets this bonus along with the sum assured as payout, whichever might be the case.
It’s a Tax Saving Instrument
Like many other types of investments in India, you become eligible to save taxes up to ?1.5 lakhs every financial year under Section 80 C of the Income Tax Act by investing in a child money back plan.
A money back policy is one of the most feature packed insurance plans out there right now making it hugely popular among all investments in India. So, for parents who are seriously considering future expenses such as funding their child’s foreign education, marriage, or other investment needs must start investing early on to take advantage of these features.
Now that you know the inherent features of a money back policy, let’s look at 3 of the top reasons you must invest in a child money back plan to give you a better perspective of what you expect in return.
- Life Cover: Since a money back plan also comes with a life component, it’s essentially a life insurance policy as well. Therefore, in the unfortunate passing away of the policy holder, the nominee (s) are eligible to receive the entire sum assured as payout under the scheme.
- Regular Payouts: You receive regular payouts as survival benefits. This payout is based on a fixed percentage of the maturity benefits being paid out periodically.
- Maturity Benefit: After the policy matures, the insured becomes eligible to receive the full maturity benefit under the money back plan. This includes the entire sum assured along with the accumulated bonuses accrued over the years.
Now that you are aware of both the features and the benefits that you can take advantage of by investing in a child money back plan, it’s time to rethink your decision to hold back and not investing in a such a plan. The sooner you start, the better because the returns can be significant depending on the amount you want to invest in a money back plan. So, if you are someone who’s really serious about giving their child a brighter future, you should invest right away.
Max Life Insurance offers the best child money back plan in the industry with some of the best features and benefits that outclass any other policies. So, if you are looking for a policy that delivers on its promise, you should check out their money back plans right away. You work so hard to make money, why not put it to good use and make it work as hard as you, so that it can give you the returns which you can’t expect by keeping it in your savings account.
Stay updated with all the insights.
Navigate news, 1 email day.
Subscribe to Qrius
