Work out ulip return instantly with clear inputs, formula shown and shareable results.
A unit-linked plan's outcome is the gross fund return less all charges: premium allocation, policy administration, fund management and mortality deductions. Over a long term even a two percentage point charge drag compounds into a very large absolute difference, which is why the net return is the only figure worth comparing.
Net return
Net return = Gross fund return - Total annual charges
Corpus
Corpus accumulates each year as (Previous corpus + Premium) x (1 + Net return)
Illustrative projection using constant returns and charges. Actual outcomes depend on fund performance, charge structure, mortality deductions and taxation. Not investment or insurance advice.
Premium allocation charges in the early years and the fund management charge over the whole term. Mortality charges are deducted separately from units.
Usually not on cost. Term insurance plus a low-cost index fund typically delivers more cover and more corpus for the same outlay, though tax treatment can shift the comparison.