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.

Total Annual Budget (₹)

How much total money can you set aside yearly?

Policy Term (Years)

Life Cover (₹)

Term Plan + MF Strategy

Term Premium (₹)

MF Return (%)

Remainder (₹85,000) is invested in MF.

ULIP Strategy

Gross Return (%)

Charge Drag (%)

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.

Wealth Accumulation Over Time

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