Term Insurance vs ULIP/Endowment Calculator
Compare "buy term, invest the rest" against a ULIP or endowment plan with the same premium.
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💡 Expert Tips
Term insurance is pure protection — no maturity value — which is exactly why it's so much cheaper per rupee of cover than a ULIP or endowment plan.
ULIPs and endowment plans bundle insurance charges and fund management fees into one product, which historically drags net investment returns well below what a standalone equity fund delivers.
This comparison assumes real discipline to actually invest the premium difference — the "invest the rest" half only works if you follow through.
How to read your result
The "term + invest" side of this comparison only works out in practice if the premium difference is actually invested every year, not left in a savings account or spent. If you know you won't have that discipline, the gap shown here is the price of that behavioural gap, not a knock against the math.
⚠️ Common Mistakes
✕ Comparing only the sum assured or maturity value without factoring in the cost (premium) to get there.
✓ A ULIP's maturity value looks attractive in isolation, but it's funded by a premium many times higher than term insurance for the same cover — always compare on a same-premium or same-outcome basis, which is what this calculator does.
✕ Surrendering a ULIP early without checking the exit penalty.
✓ ULIPs typically have a 5-year lock-in and can carry surrender charges — if you're planning to switch to term + separate investing, check your specific policy's exit terms first rather than assuming a clean exit.
✕ Letting an insurance agent's commission incentive go unquestioned.
✓ ULIPs and endowment plans typically pay agents significantly higher commissions than term insurance, which is part of why they're pushed harder — that's a reason to get independent numbers, not a reason to distrust every recommendation.
⚖️ Health & Wealth — pair this with
Frequently Asked
Is buying term insurance and investing separately really better than a ULIP?▾
For most people, yes — historically by a wide margin, because term insurance is dramatically cheaper for the same cover, and a standalone equity investment usually outperforms a ULIP's bundled, fee-heavy fund after charges.
What is the one real advantage of a ULIP or endowment plan?▾
Forced discipline — some people who would never invest on their own end up saving because the premium is contractually due. If that describes you, weigh that behavioural benefit against the numbers here.
Are ULIP returns guaranteed?▾
No — ULIPs are market-linked, same as any equity or debt fund, just with insurance and fund management charges layered on top that reduce net returns.
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Example 1 — Lump sum, no contributions
A = 1,00,000 × (1.10)^10 ≈ ₹2,59,374 — more than 2.5× growth