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What's Better For Me Endowment, Money Back Or ULIP

Published On Feb 01, 2022

The Unit Linked Insurance Plan, or ULIP, is a financial vehicle that combines insurance with investing. The premium paid for a ULIP is split into two parts. One component will be used to pay for your life insurance, while the other will be invested in bonds, stocks, or mutual funds. An endowment plan is a standard life insurance policy that promises a lump sum amount/payout at the conclusion of the policyholder's surviving period or upon death. Aside from providing life insurance, an endowment plan can help you save money throughout the course of your investment. The money is released at the policy's maturity date or to the named beneficiary or nominee. Money-Back Plans are a great option for those who don't like to take risks and prefer to have guaranteed returns on their investments rather than risking market fluctuations. Money-Back Plans are a hybrid of insurance coverage and investment corpus.

What's Better For Me Endowment, Money Back Or ULIP

Benefits of ULIPs

The following are some of the characteristics of ULIPs:

1. ULIPs are adaptable

These plans are versatile since they allow policyholders to choose and switch between numerous fund investment options. It also permits the Policyholder to perform a Partial Withdrawal with certain Extra Fees.

2. Funds for Any Critical Situation

Money is required at any point in one's life. The Partial Withdrawal Facility allows you to use the funds whenever you need them, at any point in your life.

3. Make sure your child has a bright future

The ULIPs give a Market-Related Return on Investment. These greater returns can assist you in building a corpus to satisfy your child's financial needs.

4. Make a plan for your post-retirement life

Over time, the returns from ULIPs, as well as the cover, perform better. If you start investing in ULIPs at a young age, you can build up a portfolio of investments that will benefit you after you retire.

Money Back Plans' Key Features

The following are some of the features of money-back plans:

1. Returns are guaranteed

The Money Back Plans are not affected by market fluctuations. They offer Maturity, Death, and Survival Benefits as well as Guaranteed Returns.

2. Secondary Income Source

Survival Benefits, which are paid at regular intervals throughout the policy term, provide as a secondary source of income. These Monetary Values can be used in any way the Policy Holder desires.

3. Benefits of Maturity and Death

The Money Back Plans provide guaranteed returns. You will undoubtedly receive the Sum Assured at the end of the Policy Term. The Nominee will undoubtedly get the Lump Sum in the form of a Death Benefit if the Policyholder dies unexpectedly.

4. Additional Riders

On top of the existing Plan, the Riders give comprehensive coverage. Riders such as Accidental Death, Critical Illness, and others will protect you from any unforeseeable and unexpected event.

Key Benefits Of Endowment Plans 

The following are some of the benefits of investing in an endowment policy:

1. Guaranteed Profits

Endowment policies guarantee a profit at maturity, survival, or death. The offered returns are independent of market performance and assist you in accumulating money.

2. Bonus

In a participation policy, the insurance company gives the policyholder a portion of its earnings in the form of bonuses. Over the course of the investment period, a Simple Reversionary Bonus and a Terminal Bonus are added to the policy.

3. Long-Term Financial Objectives

When invested over a lengthy period of time, an endowment plan provides substantial returns. This will assist you in efficiently achieving your long-term objectives.


After going through the points on money back, endowment plans, and ULIPs, you must have realised that ULIPs, endowment plans, and money-back policies each have their own set of benefits and drawbacks. However, some modern investors believe that an endowment policy is marginally better than a money-back policy or ULIPs.

Also read- Know Why Endowment Plans Are Better Than ULIPs

How To Purchase The Best Endowment Policy Online?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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