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Term Insurance vs Endowment Plan Calculator

Bundling insurance and investing usually costs more than buying them apart

Term Insurance vs Endowment Plan Calculator

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Years Months Days
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₹
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%
Annual premium difference
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endowment costs this much more per year, for the same cover
Endowment's stated maturity payout
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"Buy term, invest the difference" corpus
0

"Invested corpus" compounds the ANNUAL premium difference (endowment premium minus term premium) at your stated return, for the same policy term, ignoring any tax treatment differences between insurance proceeds (generally tax-free under Section 10(10D)) and investment gains (which may be taxable depending on the instrument chosen for the "invest the difference" side). Real premiums vary significantly by age, health, insurer, and specific endowment plan terms — these are illustrative inputs, not quotes. Not insurance or investment advice.

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What to work out next

Term Insurance Cover Calculator

The Human Life Value method, not a flat "10x income" guess.

Health Insurance Cover Adequacy Calculator

Is your health cover actually enough, or just a round number?

Home Loan EMI & Prepayment Calculator

EMI, interest, and prepayment savings, in one place.

SIP Calculator

See what a monthly SIP grows into over time.

Reach a Goal

Work out the monthly SIP needed to hit a target.

Lumpsum & Existing Holdings Projector

Project EPF, PPF, NPS and other holdings forward, each at its own rate.

Frequently asked questions

What is EMI and how is it calculated?

EMI (Equated Monthly Installment) is the fixed monthly payment that repays a loan over its tenure, made up of principal and interest combined. It's calculated from the loan amount, interest rate, and tenure using a standard amortization formula -- the same one this calculator uses, so you can see the exact monthly figure and how much of each payment goes to interest versus principal.Read more: Rs 1 Crore of Cover for the Same Premium as Rs 10-25 Lakh — Term vs the Endowment You Were Actually Offered

Does prepaying a loan actually save money?

Yes, almost always -- a prepayment reduces the outstanding principal, which reduces the interest charged on every remaining installment. The earlier in the loan you prepay, the more you save, since interest is front-loaded in most amortization schedules. Check for prepayment penalties with your lender first.Read more: Stop Paying Your Policy in Year One and You Get Back Rs 0 — The Real Surrender Value Table

What's the difference between flat rate and reducing balance interest?

Flat-rate interest is charged on the full original loan amount for the entire tenure, even as you pay it down -- reducing-balance interest is charged only on what's still outstanding, so it falls every month as you repay. A flat rate quoted at the same percentage as a reducing-balance rate is effectively much more expensive; always confirm which method a lender is using.Read more: If You Already Have Rs 10 Lakh in Savings, Do You Still Need That Insurance Plan?

Will improving my credit score lower my loan interest rate?

Usually, yes. Lenders price risk into the interest rate they offer, and a higher credit score signals lower risk, which typically qualifies you for better rates. It varies by lender and loan type, but it's one of the few loan-cost factors largely within your control before you apply.Read more: Rs 1 Crore of Cover for the Same Premium as Rs 10-25 Lakh — Term vs the Endowment You Were Actually Offered

Estimates only, not financial advice. See our Disclaimer.