When it comes to traditional life insurance, two of the most popular options in India are:
1️⃣ Endowment Plan – A savings + insurance policy that provides a lump sum payout after the policy term, along with life cover.
2️⃣ Money-Back Plan – A unique insurance plan that offers periodic payouts during the policy term, along with a maturity benefit.
Both these plans are ideal for risk-averse investors who want guaranteed returns along with financial protection. But which one should you choose in 2025? In this blog, we compare the SBI Life Smart Platina Assure (Endowment Plan) and LIC Jeevan Umang (Money-Back Plan) to help you make an informed decision.
1. What is an Endowment Plan?
An endowment plan is a savings-based life insurance policy that provides a lump sum payout on maturity or a death benefit to the nominee in case of the policyholder’s demise. These plans offer guaranteed maturity benefits, making them ideal for conservative investors.
Best Endowment Plan in 2025: SBI Life Smart Platina Assure
✅ Guaranteed maturity benefit with bonuses.
✅ No market risk – safe investment.
✅ Flexible policy terms (10-20 years).
✅ Life cover up to 10 times the annual premium.
✅ Tax-free benefits under Section 80C & 10(10D).
💡 Who Should Choose an Endowment Plan?
👉 Best for long-term savers, salaried professionals, and individuals looking for tax-free guaranteed returns.
2. What is a Money-Back Plan?
A money-back plan provides periodic payouts during the policy term instead of a lump sum at the end. These payouts are called survival benefits, making it an ideal choice for those who want regular income while staying insured.
Best Money-Back Plan in 2025: LIC Jeevan Umang
✅ Annual survival benefits (8% of sum assured every year).
✅ Life cover continues till 100 years of age.
✅ Lump sum payout at maturity.
✅ Loan facility available against the policy.
✅ Bonus additions increase maturity amount.
💡 Who Should Choose a Money-Back Plan?
👉 Best for retirees, self-employed individuals, and those looking for regular income instead of a one-time payout.
3. Comparison: Endowment Plan vs. Money-Back Plan
| Feature | Endowment Plan (SBI Life Smart Platina Assure) | Money-Back Plan (LIC Jeevan Umang) |
|---|---|---|
| Primary Purpose | Lump sum savings + life cover | Regular income + life cover |
| Payout Structure | One-time payout at maturity | Periodic payouts + final maturity sum |
| Risk Factor | No risk, fixed returns | No risk, but payout is spread out |
| Investment Type | Traditional savings | Regular income with insurance |
| Best For | Long-term wealth creation | People who need periodic payouts |
| Tax Benefits | ✅ Yes (Section 80C & 10(10D)) | ✅ Yes (Section 80C & 10(10D)) |
4. Which One Should You Choose?
✅ Choose an Endowment Plan if:
- You want a lump sum maturity payout.
- You prefer a safe and guaranteed savings plan.
- You don’t need periodic payouts but want a fixed amount at the end of the policy term.
✅ Choose a Money-Back Plan if:
- You want regular payouts during the policy term.
- You are looking for an alternative source of income.
- You prefer financial liquidity along with insurance.
💡 Expert Tip: If your goal is long-term savings, an endowment plan is better. If you need regular cash flow, a money-back plan is the right choice.
5. Final Verdict: Which One is Better in 2025?
🚀 Both Endowment and Money-Back Plans are great for safe, guaranteed returns.
- If you want one-time savings with a maturity benefit, go for an Endowment Plan.
- If you prefer regular payouts along with insurance coverage, opt for a Money-Back Plan.
💬 Which plan do you think suits your financial needs? Let us know in the comments! 🚀