Insurance Trap

ULIP vs Mutual Fund Calculator

Never mix insurance and investment. See exactly how much wealth you lose to the hidden charges of Unit Linked Insurance Plans (ULIPs).

Investment Plan
ULIP Policy
Total Invested₹18,00,000
Total Hidden ChargesMassive

Final Corpus

₹42,29,564

Term + Mutual Fund
Total Invested₹18,00,000
Direct MF Expense Ratio~0.5%

Final Corpus (Post Tax)

₹43,59,574

The Reality

Wealth Destroyed by ULIP

₹1,30,011

This is the exact amount of money you lose to high commissions and hidden policy charges compared to a simple Mutual Fund.

Why Agents Push ULIPs

Bank relationship managers and insurance agents aggressively push ULIPs because the first-year commission on a ULIP can be as high as 15% to 30%. In contrast, they earn exactly 0% commission if you invest in a Direct Mutual Fund.

  • Premium Allocation Charge: A portion of your premium is deducted upfront before it's even invested in the market.
  • Fund Management Charge (FMC): ULIPs charge up to 1.35% every year just to manage the fund, compared to a Direct Index Fund which charges 0.1%.
  • Lock-in: ULIPs have a strict 5-year lock-in period. If you surrender early, your money is moved to a low-return discontinuation fund and subjected to severe surrender penalties.