Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Term Life Insurance Vs Money Back Life Insurance

Those who want financial protection for their loved ones find term life insurance to be the best option, while those who want protection with regular income prefer money back life insurance. If you fall into either of these categories, this blog is just what you need.

  • May 17, 2023

Life insurance is an essential tool to ensure the financial security of your loved ones in case of an unforeseen event. With so many options available, choosing the right policy can be overwhelming.

Term life insurance and money back life insurance are two popular types of life insurance policies that people often consider. While both serve the purpose of providing financial protection to your loved ones, they have significant differences in their features and benefits.

    Key takeaways

  • A type of life insurance known as term insurance provides your family with financial security if something unfavourable occurs while the policy is still in effect.
  • A money back life insurance is an endowment plan which will provide you with a life cover for a specific term.
  • The primary benefit of investing in a term plan with money back is that it provides financial security to the policyholder’s family in case of their untimely demise.
  • A term plan with money back also acts as a savings plan as it allows the policyholder to accumulate wealth over time.
  • Retirees can also benefit from a term plan with money back, as it can provide a source of additional income in their golden years.

What is Term Insurance?

The type of life insurance known as term insurance provides your family with financial security if something unfavourable occurs while the policy is still in effect. You can purchase the plan for a small premium, and the family will be given the money insured. The strategy is made to protect against the possibility of death. However, you do not receive any maturity benefits if you outlive the policy duration.

What is a Money Back Life Insurance Plan?

A money back life insurance is an endowment plan which will provide you with a life cover for a specific term. This plan will give you returns at regular intervals during the policy term. These returns are known as survival benefits. However, if something unfortunate happens to you before maturity, your nominee will receive the sum assured, irrespective of the survival benefits provided to you earlier.

Also Read: What is Endowment Plan?

Term Life Insurance v/s money back life insurance

While both of these policies offer financial protection, they have some key differences that can impact your decision about which policy is right for you. To help you make an informed decision, we have put together a table outlining the key differences between term life insurance and moneyback life insurance.


Term Life Insurance

Money back Life Insurance

Death Benefit

Paid in the event of the policyholder’s death.

Paid in case of the policyholder’s death


Lower premiums for higher coverage

Higher premiums for lower coverage

Cash value

No cash value

Builds cash value over the policy term

Policy surrender

No surrender value

Surrender value available after a certain period of time

Maturity benefit

No maturity benefit

Maturity benefit paid at the end of the policy term

Benefits of Term Plan with Money Back

Term plans with money back are a type of life insurance policy that offers the best of both worlds - financial protection for your loved ones in case of an unfortunate event and guaranteed returns in case you survive the policy term. These plans not only provide comprehensive coverage but also ensure that you get a percentage of your premium back as a survival benefit, which can help you meet your financial goals or simply enjoy a well-deserved treat. With term plans with money back, you can secure your family’s future, get tax benefits, and also have the option of liquidity.

Let us take a look at some of the benefits of a term plan with money back:

Provides Financial Security

The primary benefit of investing in a term plan with money back is that it provides financial security to the policyholder’s family in case of their untimely demise. The lump sum payment received by the nominee can be used to pay off debts, meet daily expenses, or invest in the future.

Offers Regular Payouts

Unlike traditional term insurance plans that only pay out a lump sum amount in case of the policyholder’s death, a term plan with money back also provides regular payouts during the policy term. These payouts act as a safety net and can be used to meet financial goals or emergencies.

Acts as a Savings Plan

A term plan with money back also acts as a savings plan as it allows the policyholder to accumulate wealth over time. The regular payouts received during the policy term can be used to meet short-term financial goals or can be reinvested to accumulate wealth.

Tax Benefits

Another benefit of investing in a term plan with money back is that it offers tax benefits. The premium paid towards the policy is eligible for tax deduction under Section 80C of the Income Tax Act. Additionally, the payouts received under the policy are also tax-free under Section 10(10D) of the Income Tax Act.

Affordable Premiums

Term plans with money back are affordable as compared to other insurance plans. The premiums are relatively low, and the policyholder can choose the payout frequency and amount as per their financial goals and requirements.

Who Should Buy a Term Plan with Money Back?

When it comes to financial planning, one of the most important decisions you can make is to buy life insurance. However, with so many options available, it can be difficult to determine which type of policy is right for you. Term plans with money back are a popular choice for those who want to protect their loved ones financially while also receiving a return on their investment. But who should buy term plans with money back?

It is time to explore who could benefit from this type of policy.

Young Families

For young families, a term plan with money back can be an excellent option. These policies can provide financial security in the event of an unexpected death while also allowing the policyholder to receive a lump sum at the end of the term. This can be especially helpful for families who are still building their financial stability.


Retirees can also benefit from a term plan with money back, as it can provide a source of additional income in their golden years. The lump sum received at the end of the term can be used to supplement retirement income or cover unexpected expenses. Additionally, since term plans are typically less expensive than permanent policies, retirees can enjoy the benefits of life insurance without breaking the bank.


Entrepreneurs and business owners can also find term plans with money back to be a good option. Since many entrepreneurs have irregular income streams, it can be challenging to commit to a permanent life insurance policy with fixed premiums. Term plans, on the other hand, typically have lower premiums and more flexibility, making them a more attractive option.

Single Parents

Single parents can also benefit from the best money back policy, as it can provide peace of mind knowing that their children will be taken care of financially in the event of their death. The lump sum received at the end of the term can be used to fund their children’s education or cover other important expenses.

Bottom Line

You should take your financial needs and personal ambitions into account while deciding between the two. A sort of protection insurance that does not include investing components is called term insurance. If something unfavourable happens to you, your loved ones will have financial stability. If you want the plan to be profitable, you must pick a money back life insurance policy. It provides insurance coverage and also an investment plan. Money back plans can help people who have previously met their protection needs and have extra funds reach their long-term financial objectives.

Remember, when choosing a plan, consider the goal of the investment.

Kotak e-Term

Download Brochure


  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Should You Have Multiple Term Life Insurance Policies?

क्या ₹1 करोड़ का टर्म इंश्योरेंस पर्याप्त कवर है?

Busting Myths and Facts About Term Insurance Policies

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

6 Types of Death not covered in Term Insurance Plan

Why is it important to buy term insurance plan?

Make Your Online Term Plan Your Family's Monthly Pay Cheque

Is There Any Tax Benefit on Term Insurance?

What Happens if you Hide Facts in your Term Insurance?

Why Married People Should Buy Term Insurance Under MWP Act?

How Much Term Life Insurance Cover Do I Need?

Term Insurance: What Happens When You Don’t Pay Your Premiums?

Can Term Insurance Plans Be Purchased As A Gift?

Can I Make Changes to My Term Insurance Policy Post Purchase?

Comparing Term Plans – What Should You Look Out For

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

What is a short term insurance policy?

Endowment Plans vs Term Plans: Understanding the difference

How Not To Get Your Term Insurance Claim Rejected

Why Spending Time with Friends is Essential for Your Mental Health?

Term Insurance Calculator - Everything You Need To Know

5 Things To Consider While Buying Term Insurance Plan

6 Reasons That Make Term Insurance a Must Buy

Term Insurance Vs Car Insurance: A Budgetary Choice You'll Regret

All About Term Insurance Inbuilt Coverage

9 Point Guide on how to File Income Tax Return Online

Is It Good To Buy A Term Insurance Plan In 2022?

Types of Life Insurance Policies in India

Is Life Insurance Investment Worthy Enough

9 Most Frequently Asked Questions on Term Insurance

भारत में जीवन बीमा कितने प्रकार के होते हैं?

How To Choose the Right Sum Assured Under a Term Plan?

How to Surrender Term Life Insurance When You Have No Liabilities?

Should you have more than one nominee in your term insurance?

Is Group Term Life Insurance Provided By Employer Sufficient?

What Is a Renewable Term Insurance Policy?

Do term insurance policy have a waiting period after buying?

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

3 Things to Consider When Buying Term Insurance, If You are Single

Planning For Children's Future

Side Effects of Covid-19 Booster Doses

Reasons You Need Term Insurance Plan as a Self-Employed Person

Top 3 Reasons Why You Should Buy A Term Plan Now

Difference Between Term Insurance and Endowment Plan

How To Choose the Right Term Insurance Plan?

How Much Cover Should I Take In A Term Plan?

Insuring yourself against Ill Health with a Critical Illness Rider

Key Differences Between Term Insurance, ULIPs, And Health Insurance

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

5 Reasons to Buy Term Insurance When You are in Your 30s

What is Insurance Premium? | Definition of Insurance Premium

भारत में गृहणियों के लिए टर्म इंश्योरेंस

Online vs Offline Term Insurance: Which Is The Better Option To Buy

Which Death Type Does Your Term Plan Not Cover?

Why Should You Add a Rider to a Term Insurance Plan?

10 Ways to Mentally Refresh After a Stressful Day

5 Reasons to Have a Child Education Plan

9 Ways to Help Family Members in Financial Trouble

Do I Need to Give a Medical Test for Term Insurance in India?

Know How to Invest at Every Age for Larger Returns

Is term Insurance Needed for People With No Dependents?

How to Compare Term Insurance Online

Eligibility Criteria for Buying Term Insurance in India

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

Term Insurance Claims – Make Sure Your Claims Are Never Rejected

Why should single women purchase term life insurance?

What Should You opt for - Limited or Premium Pay?

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Can You Get Term Insurance Without Income Proof?

Increasing Term Insurance and Riders

4 Methods to Calculate How Much Term Insurance You Need

Insuring Against Disability With Disability Insurance Rider

Why Buy Term Insurance Plan With a High Cover?

Why Term Insurance Is Better Than ULIP?

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

What Is the Correct Age to Buy Term Insurance?

Why Short-Term Insurance Plans Deserve a Second Look?

Tips to Choose the Right Term Period for Term Insurance Plan

While Buying Term Insurance Compare Features, Not Just Premiums

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

Why 1 Cr Term Plan Is Necessary For Family?

How Does Short-Term Life Insurance Work?

Advantages of Buying Term Insurance in Your 50s

Everything About Claim Settlement Ratio for Term Insurance

What Should Be The Duration Of Your Term Plan in India?

How To Calculate The Amount Of Term Life Insurance You Need?

How To Change The Nominee in Term Insurance?

Can I Get Term Insurance on Behalf of My Spouse?

Why Should You Buy Term Insurance in 2022?

How Does BMI Affect Your Term Insurance Premium?

Ensure Protection Against Death, Disease & Disability With Life Insurance

Understanding Term Insurance Riders

Why Term Plan Should Be The First Step To Securing Your Future?

What is Term Insurance? Term Plan Meaning and Definition

Insuring Protection Against Death With Death Insurance Rider

Gift Your Father A Term Insurance Plan This Father's Day

What Are the Best Term Insurance Plans for Planning Retirement?

Why Term Insurance Is Important in times of COVID-19?

Choosing Riders for Insurance Plans

Can I Buy Term Insurance for a COVID-19 Patient?

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

What is Critical Illness Policy?

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

Difference Between Short-Term and Long-Term Insurance

Cost of Term Insurance Likely to Increase Soon

Is Term Life Insurance Plan an Investment or Expense?

How do I Calculate My Term Insurance Premium

Why You Must Include In Your Financial Planning?

Is a Term Insurance Policy Portable?

8 Factors to consider before choosing a Critical Illness Insurance

Steps on How to Buy Term Insurance Online

Benefits of Short-Term Life Insurance Policy

Buying A Term Insurance Plan? Take These Factors into Account

10 Most Frequently Asked Questions - FAQs on Term Insurance

Planning For Son or Daughter's Wedding

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

Term Insurance with Critical Illness

टर्म इंश्योरेंस क्लेम प्रक्रिया

What is a term insurance plan with a return of premium, and how does it work?

How To Evaluate Your Term Insurance Quote?

How Much Term Life Insurance Cover Do I Need in India?

Difference Between Term Insurance and Endowment Plan

Different Types of Premiums in Term Insurance?

Should Youngsters, Working Couples Buy Term Insurance Plans?

Insuring Against Accidents with an Accidental Death Insurance Rider

5 Benefits of Early Retirement Planning

Why Should You Not Take A Term Plan Without Medical Test in India?

Why Should New Parents Buy Term Life Insurance?

4 Things To Expect From Your Term Insurance Plan in India

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

Joint vs Individual Term Insurance: Which One Should You Choose?

Insurance Policy for Housewife In India

Should you buy a Renewable Term Life Policy?

All you need to Know about Term Insurance Plans for housewives

Difference between Section 80C and 80CCC of the Income Tax Act, 1961

Importance of Term Insurance at Every Stage of Your Life

Do You Need Term Insurance Cover After Retirement?

Term Insurance Plans and Policies for Smokers

Why does every working women need life insurance?

Term Insurance Age Limit – Term Plan for All Age Groups

Should You Buy a Term Plan After 40?

Term Plans are Definitely Cheaper than You Think!

Protection for your family

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

What All Documents Required For Term Insurance In India?

Term Insurance With Riders In India

How Does Term Life Insurance Work? Learn the Benefits

How to Buy ₹1 Crore Life Insurance Policy Without Medical Test?

All about Online Income Tax Calculator

Is ₹1 Crore Term Insurance Good Enough Cover?

What Types of Deaths Are Covered in a Term Insurance Plan?

Can I Extend the Tenure of My Term Insurance Plan?

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

11 Types of Death not covered in Term Insurance Plans

4 Reasons Why You Need Critical Illness Cover

Term Insurance: Smokers vs Non-Smokers

Term Insurance vs Life Insurance: Understand the Difference and Benefits

Why Buy Term Insurance Even at Rising Rates?

How to Identify Term Insurance According to Your Needs?

Why Premium Amount for Term Insurance is So Low?

Individual Life Insurance vs. Group Term Life Insurance

जीवन बीमा पॉलिसी लेने की प्रक्रिया क्या है?

Tax Benefits of Term Insurance in India

टर्म इंश्योरेंस बनाम लाइफ इंश्योरेंस: अंतर और लाभ समझें

5 Term Insurance Benefits for Single Women

10-Year Term Life Insurance Policy - Explained in Detail

Can Senior Citizens Avail Term Insurance?

8 Benefits of Term Insurance You Should Know

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

How Does Term Life Insurance Work? Learn the Benefits

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Can a Housewife Buy a Term Insurance Plan - All You Need to Know

What Are Insurance Riders and How to Choose Them in a Term Plan?

Does Your Term Insurance Plan Cover Death Due to COVID-19?

Zero Cost Term Insurance Plan: What is & Should you buy it?

Can You Increase Your Term Insurance Cover?

Calculating Term Insurance Premium

Term Life Insurance Plan for Smokers vs Non-Smokers

What are the Documents Required for Term Insurance Plan?

Make Your Online Term Plan Your Familys Monthly Payout

Do Beneficiaries Pay Taxes on Term Insurance?

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

Different Types of Protection Plans

What are incremental term insurance plans?

Advantages & Disadvantages of Term Insurance in India

Term Insurance Basics You Should Know

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

Does Term Insurance Cover Accidental Death?

8 Things To Do After Buying Term Insurance

Term Plan with Spouse Cover