9 min read·Dinesh Singh
What each one actually is
Term plan = pure life cover, no maturity. ULIP = life cover + market-linked investment, bundled together with charges.
The cost comparison
For a 30-year-old, ₹1 Cr term cover costs ~₹800/month. The same ULIP premium gives ~₹10 L cover and 1.5–2.5% annual charges in the early years.
After-tax returns
A ₹10K/month SIP at 12% over 20 years grows to ₹99 L. The same amount in a ULIP nets ₹78–85 L after charges.
When ULIP wins
If you're a high-income earner already maxing 80C and want LTCG-free 10(10D) maturity above ₹2.5 L annual premium discipline ULIPs can make sense.
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