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CalcTortoise

Insurance Plan vs Term + Invest

Agents sell endowment and money-back plans as “insurance plus savings”. Compare one with a cheap term plan and investing the rest — same money out of your pocket every year.

Written by the CalcTortoise editorial team · How we work

Insurance plan (endowment / money-back)

years
years

Term plan + invest the rest

Ask an insurer for a quote for your age and cover.

For example an equity or index mutual fund, after tax. Use 7–8% for a safer mix.

Year by year

YearTerm + invest: investedLife cover, term + investLife cover, insurance plan
Year 1₹96,800₹1,00,96,800₹10,00,000
Year 2₹2,03,280₹1,02,03,280₹10,00,000
Year 3₹3,20,408₹1,03,20,408₹10,00,000
Year 4₹4,49,249₹1,04,49,249₹10,00,000
Year 5₹5,90,974₹1,05,90,974₹10,00,000
Year 6₹7,46,871₹1,07,46,871₹10,00,000
Year 7₹9,18,358₹1,09,18,358₹10,00,000
Year 8₹11,06,994₹1,11,06,994₹10,00,000
Year 9₹13,14,493₹1,13,14,493₹10,00,000
Year 10₹15,42,743₹1,15,42,743₹10,00,000
Year 11₹17,93,817₹1,17,93,817₹10,00,000
Year 12₹20,69,999₹1,20,69,999₹10,00,000
Year 13₹23,73,799₹1,23,73,799₹10,00,000
Year 14₹27,07,978₹1,27,07,978₹10,00,000
Year 15₹30,75,576₹1,30,75,576₹10,00,000
Year 16₹33,69,934₹1,33,69,934₹10,00,000
Year 17₹36,93,727₹1,36,93,727₹10,00,000
Year 18₹40,49,900₹1,40,49,900₹10,00,000
Year 19₹44,41,690₹1,44,41,690₹10,00,000
Year 20₹48,72,659₹1,48,72,659₹10,00,000

How to use this calculator

  1. Enter the plan’s yearly premium, how many years you pay, the policy term and what it pays at the end.
  2. Enter a term plan quote: the cover and its yearly premium.
  3. Set the return you can earn on the money you invest.

Frequently asked questions

What return does an endowment plan really give?

Work it out from the brochure. Paying ₹1,00,000 a year for 15 years and getting ₹25,00,000 after 20 years is a yearly return of 3.9% — often less than a bank FD.

Is term insurance plus investing better?

In the example, a term plan with ₹1,00,00,000 cover and the rest invested at 10% leaves ₹48,72,659 after 20 years, against ₹25,00,000 from the plan — and 10 times the life cover.

What if I invest more safely?

At 7% a year, the term + invest choice ends with ₹32,44,806. The plan pays ₹25,00,000.

What does a term plan give back if I live?

Nothing — that is why it is cheap. It is pure cover for your family. The savings part is done separately, where you choose how to invest.

I already have an endowment policy. Should I stop it?

Not without checking. Closing early (surrender) can lose a big part of what you paid. Compare the surrender value with paying on, before you decide.

Sources and method

Standard compound-interest formulas, tested against worked examples. Nothing here depends on outside data; the rates you type in are your own assumptions.

No outside data is used. The numbers you type in are the only inputs.

Page and formula last reviewed . How we calculate · Editorial policy · Corrections and change log

Last updated 10 October 2026. For information only — not financial advice. Check the final figures with your lender or bank.