Money-back life insurance plans are a popular life cover option in India, providing the dual benefits of insurance coverage and periodic returns. These plans are designed to offer survival benefits alongside a lump sum payout at maturity or as a death benefit.
Maximising Your Money-Back Life Insurance Plan Returns
Here are several strategies to maximise returns from your money-back term insurance plan.
Choosing the Right Plan
Selecting a suitable money-back term insurance plan is crucial. Consider the following:
Sum Assured and Premiums: Ensure the sum assured aligns with your financial goals. Use a term insurance calculator to compare premiums across different plans.
Policy Term and Payout Intervals: Opt for a policy term and payout intervals that match your financial needs.
Considering Sum Assured and Premiums
The sum assured should align with your financial goals and your family’s needs. A higher sum assured will ensure better financial security. Use a money-back term insurance calculator to compare the premiums of different plans and find one that offers the best value for money.
Leveraging Bonuses and Benefits#
Insurance companies often declare bonuses and additional benefits, which can significantly increase the returns on your policy. These include reversionary bonuses, terminal bonuses, and loyalty additions.
Reinvesting Periodic Payouts
The periodic payouts from your money-back term insurance plan can be reinvested to generate additional returns. Consider options such as mutual funds, fixed deposits, the stock market, and more.
Comparing Plans Using a Term Insurance Calculator
A term insurance calculator is an essential tool for comparing different money-back term insurance plans. It helps you assess premiums, benefits, and overall value, ensuring you make an informed decision. By inputting your details and requirements, you can compare multiple plans side-by-side to find the one best suiting your needs.
Considering Inflation
When choosing a money-back term insurance plan, consider the impact of inflation on future payouts. Ensure that the sum assured and periodic payouts are sufficient to cover future expenses, keeping inflation in mind.
Diversifying Your Investment Portfolio
While money-back term insurance plans provide a combination of insurance and investment, it is essential to diversify your investment portfolio. Do not rely solely on one financial instrument. Combine your money-back term insurance plan with other investment avenues such as PPF, EPF, and equities to ensure a balanced and diversified portfolio.
Regularly Reviewing Your Policy
Regularly review your money-back term insurance plan to ensure it continues to meet your financial goals. Life circumstances and financial goals can change, and it is essential to adjust your policy accordingly. Consider increasing the sum assured, adding riders, or adjusting the policy term based on your current situation.
Maximising returns from your money-back term insurance plan requires a well-thought-out strategy and informed decision-making. By choosing the right plan and implementing the right measures, you can significantly enhance the financial benefits of your insurance policy.
By following the above strategies, your money-back term insurance plan can provide both robust insurance coverage and substantial investment returns, ensuring financial security and growth for you and your family.
** Tax exemptions are as per applicable tax laws from time to time.
# Bonus rate may vary from time to time based on Company’s Investment Performance.
Disclaimers: IndiaFirst Life Insurance Company Limited, IRDAI Regn No.143, CIN: U66010MH2008PLC183679, Address: 12th & 13th floor, North Tower, Building 4, Nesco IT Park, Nesco Centre, Western Express Highway, Goregaon (East), Mumbai – 400 063. Toll free No – 18002098700. Email id: customer.first@indiafirstlife.com, Website: www.indiafirstlife.com. Fax No.: +912268570600. IndiaFirst Life Insurance Company Limited is only the name of the Life Insurance Company and ________________ UIN ____________ is only the name of the Life Insurance Product and does not in any way indicate the quality of the contract, its future prospects, or returns. For more details on risk factors and terms and conditions, please read the sales brochure carefully before concluding the sale. Trade logo displayed above belongs to our promoter M/s Bank of Baroda and is used by IndiaFirst Life Insurance Co. Ltd under License. Advt.
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