Endowment policies are basically of two types – one where the proceeds are made available to the insured at the end of the term, and the other where the policy provides for periodic payments during the term of the policy itself. The second type of endowment policy is also known as money back policy.
If seen from the rate of investment point of view, the first type of endowment policy is better because the investment gets compounded.
On the other hand the periodic lump sum payments under a money back plan gives you a chance to deploy the funds elsewhere, if you wish to do so.
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