Investments

ULIP Calculator

ULIPs look attractive ('insurance + investment in one!') but charge stacks erode returns. This calc shows exact corpus after all charges, plus what a pure SIP at the same rate would have given. Most people are surprised by the gap.

Inputs

₹
₹500₹5.00 L
%
5%20%
yr
5 yr40 yr
%
0.5%2.5%
%
0.5%3%
ULIP corpus
₹31,63,115
Total premium paid
₹18,00,000
Total charges
₹3,18,633
Charge drag vs pure SIP
−₹10,16,127
Pure SIP would've grown to ₹41,79,243

ULIP corpus growth

After all charges (allocation + admin + mortality + FMC)

FAQs

Should I buy ULIP?

Generally no. ULIPs combine insurance + investment but charge for both — the drag from mortality + admin + allocation + FMC charges typically reduces returns 1–3% vs pure mutual funds. Buy term insurance + invest in MFs separately.

What charges does ULIP have?

Premium allocation (1–10%), policy admin (small monthly fee), mortality charge (insurance cost, increases with age), fund management charge (1–1.35%), discontinuance, switching, surrender charges. Stack adds up.

When does ULIP make sense?

High premium (₹2.5L+/year), need both insurance and investment in one product, want some lock-in for discipline, comfortable with 1–3% return drag. Even then, term insurance + MFs is mathematically superior for most.

Is ULIP tax-free?

Premium 80C (₹1.5L). Maturity tax-free under 10(10D) IF annual premium ≤ ₹2.5 lakh. Above ₹2.5L premium → taxed like equity MF (12.5% LTCG over ₹1.25L). Death benefit always tax-free.