A term insurance is a no-frills traditional insurance policy that covers your life for a pre-determined period. In case of the policy holder’s untimely demise during the plan period, the beneficiaries receive a lump sum death benefit. However, if you survive the period covered under your plan, no pay-out will be made to you.
Conversely, a money-back plan offers all traditional plan benefits, including life cover and sum assured as death benefit. Additionally, a cash back policy also offers periodic survival benefits, limited premium payment facility, and the remaining sum assured upon maturity of the plan.
Weigh the pros and cons against what you require, and make an informed choice.