Term Insurance vs ULIP
Insurance agents love selling ULIPs for the commissions. See the mathematical truth of "Buy Term & Invest the Rest" (BTIR) versus mixing insurance with investment.
How much total money can you set aside yearly?
Term Plan + MF Strategy
Remainder (₹85,000) is invested in MF.
ULIP Strategy
ULIPs have 1.5% to 3% drag due to Premium Allocation, Mortality, and Admin charges.
The Winning Strategy
Term + Mutual Fund Wins.
It generates ₹19,17,100 MORE wealth over 20 years.
Term + MF Final Value
₹68,59,393
You get ₹1,00,00,000 Life Cover + This Wealth.
ULIP Final Value
₹49,42,292
You get ₹1,00,00,000 Life Cover + This Wealth.