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Term Life Plan vs Money Back Plan
A term life plan does not offer any maturity proceeds; instead, it allows the nominee to receive a predetermined sum guaranteed in the event of death within the plan term. Money back policies provide the primary sum assured upon death as well as consistent payouts throughout the term. Compared to traditional term plans, money-back policies have significantly higher premium rates and are less economical.
1 Crore Term Insurance@Rs.19/day***
To delay is to regret
You may not always be around to take care of your family. And that’s when a term plan ensures your family is well protected.
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Return of Premium (ROP) Option^
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Individual Death Claim Settlement Ratio of 99.50%##
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Same Day Claim Processing#
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Term Life Plan vs Money Back Plan - Know Before Buying
Table of Content
Any kind of an insurance policy derives its truth from the fact of continuation and is futuristic in plan. A traditional term insurance plan is the one that lets the policyholder’s nominee(s) to receive a pre-decided and documented amount (i.e. sum assured) in the case of her/his death within the plan term.
What this essentially means is that the policy holder and the insurance provider both work out as grantors towards the amount to which the policy holder is entitled. Therefore, as per the regular definitions of the terms, a standard term insurance plan does not offer any maturity proceeds or any “renewal benefits”. It simply serves as a guarantee of financial protection for your loved ones in the event of any unforeseen circumstances.
How Money-Back Policies Differ from Term Insurance?
A traditional and a standard money back policy offers the unique feature of regular payouts in a pre-decided time period over the complete term of the plan. In case of the policy subscriber’s demise during the term of the plan, her/his nominee(s) are entitled to the main coverage benefit, which is the main sum assured and this amount is independent and beyond the amount that has been already paid by the insurer as regular payouts. In simple words, money back policies offer additional benefits in the due period of time as included in the conditions of the policy and as demanded by the pre-decided and documented limits of the plan.
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Comparing Cost Efficiency: Term Plans vs. Money-Back Plans
The difference is that money-back plans are useful tools for monetary control and budgetary allocations since they provide more accruing advantages than traditional ones. This is where the due comparison comes in between a standard term plan and a money back plan. Once you compare the whole volume of premiums paid by the subscriber over the term of the plan, you may find that the premium rates are in fact, much expensive. This, in essence, means that the generated returns of the money back policies in comparison to the paid premiums tend to be less cost efficient. After all, when the comparison between the premium rates of money back policies and those of traditional term plans is made, the term plans emerge as much economical. Therefore, a thorough analysis of your specific requirements must be done before investing in money back policies.
HDFC Life presents HDFC Life Super Income plan – a non-linked money back plan that allows you to fulfill your financial dreams at all times and comes with guaranteed benefits. For details, click on the mentioned link: https://www.hdfclife.com/savings-plans/super-income-plan.
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99.68% Claim Settlement Ratio
For FY 2024-2025
~5 Cr. Number Of Lives Insured
For FY 2024-2025
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99.68% Claim Settlement Ratio
For FY 2024-2025
~5 Cr. Number Of Lives Insured
For FY 2024-2025
Francis Rodrigues
Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.
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HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.
^ Available under Life & Life Plus plan options
#Provided we have received all the relevant and required documents and no further investigation is required. Claim settlement process would be completed within stipulated timelines once the claim request is approved
##Individual claim settlement ratio by number of policies as per audited annual statistics for FY 23-24
***Online Premium for Life Option for HDFC Life Click 2 Protect Supreme(UIN:101N183V01), Male Life Assured, Non-Smoker, salaried, 20 years of age, Policy term of 25 years, Regular pay, Monthly frequency, inclusive of 15% online discount (applicable only for 1st year premium) & exclusive of taxes and levies as applicable. (Monthly Premium of 573/30=19).
**If a customer is a Salaried individual and has opted for a cover of INR 2 Cr with Limited pay, then the total discounts applicable shall be: 10% +7% = 17% discount on the first year premiums.
@As per integrated annual report FY24-25, available on www.hdfclife.com. As of May 2025
~Tax benefits of ₹ 54,600 (₹ 46,800 u/s 80C & ₹ 7,800 u/s 80D) is calculated at highest tax slab rate of 30% on life insurance premium u/s 80C of ₹ 1,50,000 and health premium (Critical illness rider) u/s 80D of ₹ 25,000. Tax benefits are subject to conditions under section 80C, 80D, 10(10D) as per Income Tax Act, 1961. Please consult your tax advisor for more information.
