Before Taking Life Insurance, Know What Are Endowment Plans, How Are They Different From Money Back Plans

What are Endowment Plans 

Endowment plans are life insurance plans only. But here along with life coverage, the insured also gives the option of regular savings after a fixed time. When the insured invests in an endowment plan for a certain period of time, after that a lumpsum amount is given to the insured as a return. This amount received after maturity can be used by the insured to meet his needs. But if the insured dies during the term itself, then the sum assured is given to his/ her nominee. Therefore, a life insurance that includes a lumpsum maturity benefit along with the option of saving is called an endowment policy.

Difference Between Endowment And Money Back Plan

The main difference between these two schemes is the survival benefits. Survival Benefit is the money that is received from buying the policy between maturity. In endowment plan, the customer gets the survival benefit only after the completion of the policy term. Which is called maturity of the policy. This money is added on the maturity of the policy by adding the sum assured and bonus. But if we talk about money back policy, then survival benefit is given here after a fixed time. For example, every 5 years the company returns the money.