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Money-Back PLans Vs. Endowment Plans

Published On Mar 08, 2021 12:00 AM By Shrida Gulati

Money-Back and Endowment plans two types of savings cum life insurance plans. They help the policyholder to grow their savings and use them to meet their financial goals. They both may seem somewhat similar but they are different from each other. Below we have briefly discussed both the categories of life insurance plans and how they differ from each other.

What are Money-Back Plans?

Money-back plans pay back the money invested with guaranteed appreciation at regular intervals during the policy tenure. The money-back amount is equivalent to a decided percentage of the sum assured. These periodical payouts are known as survival benefits. These payouts are made during the policy term and the rest of the sum assured is paid out to the policyholder at the time of plan maturity. In case the policyholder dies during the policy term, the sum assured is paid to the nominee irrespective of the paid periodical survival benefits. Being a type of life insurance plans, they also provide a life cover for the life assured throughout the policy term.

Also Read:- Which Plan Gives Guaranteed Income for Life?

What are Endowment Plans?

Endowment Plans promises to pay a lump-sum amount after a fixed period in case of death of the policyholder or maturity, whichever is earlier. Endowment plans provide life cover along with the opportunity to save for the future. In addition to the sum assured on the death of the policyholder or plan maturity, this plan provides wealth appreciation by the way of regular bonuses and a terminal bonus.

Difference Between Money-Back Plans and Endowment Plans

Money-Back plans may seem similar to Endowment plans but in-fact they are very different. Below discussed are some of the major differences between the two types of plans. Read thoroughly to understand how money-back plans are different from endowment plans.


Money-Back Plan

Endowment Plan


Money-back life insurance plans pay back the money invested in the plan at regular intervals during the policy tenure. Money received at regular intervals are known as survival benefits which are equal to a certain percentage of sum assured.

An Endowment Plans promises to pay a lump-sum amount after a fixed period in case of death of the policyholder or maturity.


Life Cover + Wealth Appreciation


Survival Benefits that are equivalent to a percentage of sum assured provided at regular intervals.

Sum assured amount along with accrued bonuses (if any).

Loan Against Insurance Policy

Generally not available

Available with most of the plans

Policy Tenure

5-25 years

10-35 years

You May Also Like to Read:- Everything You Need To Know About Exide Life My Money Back Plan

How to Choose the Right Money Back Plan?


Money-Back plans and Endowment plans both serve the dual purpose of life insurance and an investment tool. Before you purchase either one of them you should know how they both are different from each other and which one will help you fulfill your insurance requirement.

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