Plans allow systematic enhancement of wealth with insurance
Are you looking for an investment plan with good returns? Do you tend to get confused with the variety of policies available in the market at different rates? If you are looking for a solid foundation to insure your family as well as secure their future with good investment returns, a Money Back Policy is your best bet. Money back Policy is one investment plan which offers sustained benefit over a period of time.
This is one of the only investment plans in the market where you are sure to receive a constant sum at regular intervals over the term. This acts as your investment return. During the Term of a money back policy, the Insured party receives a fixed percentage of the insured amount at regular intervals. At maturity, the insured party receives the sum Assured along with accrued Bonus or Loyalty Additions (if any) being announced by the company.
In a volatile economy where interest rates are shooting up and innumerable investment plans sprouting up, a money back policy is the most simple and straightforward investment plan. This is one plan which guarantees investment returns at regular intervals. The insured party assures a lump sum at the beginning of the term and gets the money back at fixed times till the policy reaches maturity. Added to this is the insurance benefit whereby you or your nominees get the full Sum Assured in case of Maturity or death, respectively.
As an investment plan, one can reap high benefits depending on how the paybacks are used. In a nutshell, a money back policy is like a savings scheme. One receives predetermined sums of money on prescribed dates. This money can be used for specific purposes at said intervals. If you plan the use of these sums of money, keeping in mind the rates in the market, these can be further invested for maximum benefit. In terms of investment returns, money back policies offer the chance of receiving back 100% of the sum assured. These may be over the term of the policy and/or at maturity or death.
The rate of the Premium will depend on the lifetime of the investment plan, sum assured, number of installments and mode of payment. It is wise to measure these periodical premiums against the investment returns over the same period. In other words, is the rate of investment return more than the rate at which the premiums are being paid over the same period?
Choosing a policy with the most optimum investment returns involves opting for the correct premium rates. The rate of the premiums will largely affect your overall investment benefits. Investment returns also depend on the percentage of assured sum decided on for payback. An optimum combination of paybacks and premiums will be one where insured party does not pay higher than the rate of return. Also make sure that your investment plan offers lower Risk and the possibility of tax benefits.
Money back policies are one of the most risk-free investment plans out there. There are no worries of market fluctuations or changes in interest rates. As the terms of the policy are decided at the beginning of the term, no amount of outside forces will affect your investment returns here. So if you are looking for investment returns at a sustained rate over a period of time, this is the policy to choose.