How to make the right choice between Endowment plan and a Money Back plan?

While the world has definitely become a much easier and more convenient place to live in with all the alternatives available for almost each and everything available in the market. For insurance as well, it becomes a real task to choose from amongst the varied types of plans being offered by the different insurance providers in the market. And even in that, the big question that arises is that how to make the right choice between an endowment plan and a plan with money back policy at the time of buying a suitable insurance plan. And with all the additional details available for one to analyze with a variety of investment insurance plans being offered by a plethora of brand names in the industry, choosing becomes difficult.

While the people in India are usually less experimental and go more towards the traditional features, we see a lot of people opting for the saving plans that assist them in savings for their future in both the near and the distant future. While a money back plan is typically defined as the amalgamation of insurance and savings. One of the major benefits that an individual ends up buying a money back policy is that it offers one a steady income flow at regular intervals. It serves as the best investment deal for ones looking for insurance as a financial tool to invest for guaranteed low-risk investments.

As for endowment plan as well, it is a mixture of getting insurance as well as making right investment alongside while the fundamental difference between two of these investment insurance plans is in their time period of receipt of the amount insured by the insurer. The money back plan will give one a regular income every 5 years and the final maturity benefit at the end comes to be around 120% of the sum assured while it may not be this fixed in terms of having an endowment plan. Thus, ideally the money back plan stands relatively more beneficial from the perspective of financial investment as well as getting the best possible returns with this. However, before making any investment, one must take into account one’s specific objectives for saving and investment, the relevant aspects of the plan chosen as well as practicality of the offer, so as to be able to make the right decision and get best returns for one’s invested money.