ULIP Calculator
Project the maturity value after charges, the life cover it provides, and how it compares to term + a low-cost fund.
Your plan details
Sum assured is taken as 10× this — the common ULIP minimum.
Premiums are modelled as paid throughout the term.
Illustrative, not guaranteed — market-linked.
Deducted from each premium before investing.
Annual charge on the fund value; capped at 1.35% by IRDAI.
Results update live — calculations run in your browser, no signup.
₹28.55 L
After charges, in 15 years — your fund grows 1.90× the ₹15.00 L you pay in
About 25% of your premiums — an estimated ₹3.73 L — goes to charges over the term, alongside ₹10.00 L of life cover.
Illustrative estimate at a constant 10.0% gross return. ULIP returns are market-linked and not guaranteed; charges reduce what you keep.
Your fund reaches 1.90× the premiums by year 15 — compounding does the heavy lifting after the early charge-heavy years.
| Year | Premiums paid | Fund value | Growth |
|---|---|---|---|
| Year 5 | ₹5.00 L | ₹5.94 L | ₹94,062 |
| Year 10 | ₹10.00 L | ₹14.94 L | ₹4.94 L |
| Year 15 (maturity) | ₹15.00 L | ₹28.55 L | ₹13.55 L |
Maturity row highlighted. Values are illustrative projections at a constant assumed return, not guarantees.
Every year in detail
Projected fund value at the end of each of the 15 years, against cumulative premiums paid.
| Year | Premiums paid | Fund value | Growth |
|---|---|---|---|
| Start | ₹0 | ₹0 | ₹0 |
| Year 1 | ₹1.00 L | ₹99,958 | -₹42 |
| Year 2 | ₹2.00 L | ₹2.09 L | ₹8,562 |
| Year 3 | ₹3.00 L | ₹3.27 L | ₹26,561 |
| Year 4 | ₹4.00 L | ₹4.55 L | ₹54,767 |
| Year 5 | ₹5.00 L | ₹5.94 L | ₹94,062 |
| Year 6 | ₹6.00 L | ₹7.45 L | ₹1.45 L |
The honest comparison — hold the cover constant
A pure term plan buys the same ₹10.00 L cover for a small premium; the rest goes into a low-cost index fund at the same 10.0% gross return.
ULIP maturity
₹28.55 L
Term + low-cost fund
₹32.10 L
The unbundled route builds roughly ₹3.55 L more (12%) for the same cover, purely by sidestepping the bundled charges. A ULIP can still suit someone who values one tax-friendly product. All figures illustrative.
Same ₹1,00,000/yr for 15 years. Reference returns for PPF, SIP and FD are illustrative long-term figures, not guarantees.
| Option | Invested | Est. maturity | Returns | Life cover | Tax |
|---|---|---|---|---|---|
| ULIP | ₹15.00 L | ₹28.55 L | 10.0% gross | ₹10.00 L | 80C + 10(10D) |
| PPF | ₹15.00 L | ₹27.12 L | 7.1% | — | EEE (tax-free) |
| Equity SIP | ₹15.00 L | ₹41.75 L | ~12% (illus.) | — | LTCG 12.5% |
| FD | ₹15.00 L | ₹26.89 L | 7% | — | Slab rate |
Only the ULIP bundles life cover with the investment. The others have no cover but typically lower costs. All figures illustrative.
Where your premiums go
Of the ₹15.00 L you pay in, this much reaches the fund versus what the charges take.
Allocation charge
₹60,000
Mortality (cover)
₹60,000
Fund management
₹2.53 L
Because the FMC is levied on the whole fund every year, the drag compounds — the bigger your fund grows, the more the percentage charge takes in absolute terms.
How your money is allocated
IllustrativeA typical balanced ULIP fund mix — yours depends on the fund you pick.
ULIPs let you choose and switch between equity, debt and balanced funds. A higher equity weight aims for more growth with more volatility — this split is indicative, not a recommendation.
Tax benefits
- Section 80C
deduction on premiums paidup to ₹1,50,000 - Section 10(10D)
maturity proceedstax-free* - Your premium
deductible this year₹1.00 L
*Maturity under 10(10D) is tax-free only if annual premium stays within the limits (currently ₹2.5L for ULIPs bought on/after Feb 2021, and the sum assured is at least 10× the premium). Tax rules change — confirm current limits with a tax adviser. Estimates, not advice.
Switching benefits
A feature ULIPs offer that standalone funds do not — move between funds inside the policy.
- Free fund switches — Most ULIPs allow a number of free switches between equity, debt and balanced funds each year.
- No tax on switching — Moving between funds inside the policy is not a taxable event, unlike redeeming and rebuying mutual funds.
- Rebalance with markets — Shift toward debt as you near your goal, or back to equity in a downturn — without exiting the plan.
Switch limits, charges beyond the free quota and lock-in rules vary by policy — check your brochure. Indicative, not a quote.
- 25% of your premiums — about ₹3.73 L — goes to charges over the term.
- Term cover + a low-cost fund could build ₹3.55 L more for the same ₹10.00 L cover.
- Your fund grows 1.90× the premiums — an XIRR of 7.69%.
Power of starting early
Starting this ₹1,00,000/yr plan at age 30 (15 years) could mature at ₹28.55 L, versus ₹5.94 L if you started at age 40 (5 years) — about ₹22.61 L more for the same yearly premium, purely from extra years of compounding. Illustrative, not a guarantee.
Risk vs return
Where a ULIP's equity fund sits versus safer and riskier options — past performance is not indicative of future returns.
Bar length is an illustrative volatility/risk indicator, not a measured figure. Returns shown are long-term reference assumptions — markets vary year to year and past performance does not guarantee future returns.
Why choose a ULIP
Insurance + investment
Life cover and market-linked growth in a single product.
Tax-efficient
80C on premiums and 10(10D) tax-free maturity, within limits.
Fund switching
Move between equity and debt funds tax-free inside the policy.
Goal-based saving
A 5-year lock-in enforces discipline for long-term goals.
Who should invest in a ULIP
- Long-term savers comfortable with a 5-year-plus lock-in and market-linked returns.
- Investors who want insurance and investing bundled in one tax-efficient product.
- People who value forced discipline and the ability to switch funds tax-free.
- Those who would otherwise prefer a pure term plan + low-cost fund should compare both — it often builds more wealth for the same cover.
Your ULIP at a glance
- Maturity value: ₹28.55 L (1.90× premiums)
- Total premiums paid: ₹15.00 L
- Life cover: ₹10.00 L (10× annual premium)
- Est. charges: ₹3.73 L (25% of premiums)
- Returns (XIRR): 7.69% · 5-year lock-in, market-linked
Protect your family with term life cover
Compare and buy a term insurance plan from Axis Max Life online. Axis Max Life Insurance, at no extra cost to you.
Your plan: ₹1,00,000/yr for 15 years → about ₹28.55 L, with ₹10.00 L cover.
Plan protection and growth separately
Price the unbundled route — term cover for protection, a fund for growth.
A simplified model: each premium is reduced by the allocation charge, a mortality charge for the ₹10.00 L cover is taken from the fund each year, and the fund grows at your gross return minus the FMC. Real ULIPs also levy policy-administration fees and GST, may add loyalty units, and returns are market-linked — they vary year to year and are not guaranteed. All figures here, including premium and charge assumptions, are illustrative estimates, not a quote. Confirm exact charges, cover and tax treatment with the insurer.
How this ULIP projection is built
Fundₜ = (Fundₜ₋₁ + Premium − Allocation − Mortality) × (1 + g − FMC)
- Premium
- your annual premium
- Allocation
- premium × allocation charge %
- Mortality
- cover × ~0.4%, the charge for life cover
- g
- expected gross return (decimal)
- FMC
- annual fund-management charge (decimal)
Worked example
With your inputs — ₹1,00,000/yr at 10.0% gross for 15 years: each year the allocation charge (4.0%) skims the premium, a mortality charge for the ₹10.00 L cover is deducted from the fund, and the balance grows at the gross return minus the 1.4% FMC. Compounded across the term this reaches an estimated maturity of about ₹28.55L — ₹15.00L of premiums and ₹13.55L of growth, after roughly ₹3.73L of charges. Illustrative and market-linked; returns are not guaranteed.
Most asked ULIP questions
A ULIP (Unit Linked Insurance Plan) bundles life insurance with a market-linked investment. Part of each premium buys life cover and the rest is invested in equity or debt funds you choose. The catch is the layered charges — allocation, mortality, fund management and admin fees — which reduce what actually gets invested.
Charges compound against you over the term. A premium allocation charge skims each premium before it is invested, the annual fund-management charge (capped at 1.35% by IRDAI) is levied on the whole fund every year, and mortality charges pay for the insurance cover. Over 15-20 years this drag can run into lakhs versus a low-cost index fund at the same return — the calculator above estimates that gap for you.
Buying a pure term plan for protection and investing the difference in a low-cost index fund usually gives you more cover and more growth for the same outlay, because you avoid the bundled charges and keep the two goals separate. A ULIP can suit someone who wants a single forced-savings product with a tax-friendly wrapper, but many investors prefer the unbundled route. The comparison above is illustrative — both routes are market-linked and not guaranteed.
ULIPs have a mandatory 5-year lock-in — you cannot withdraw your money before then, and surrendering early means the fund moves to a discontinuance account earning minimal returns. Because charges are front-loaded, exiting in the early years often leaves you with less than you paid in. Treat a ULIP as a long-term commitment, not a flexible investment.
The complete guide to ULIPs
What a ULIP actually is
A Unit Linked Insurance Plan bundles life cover with a market-linked investment in a single product. Each premium is split — a slice buys insurance and pays the plan's charges, and the remainder is invested in equity or debt funds you choose. The appeal is convenience and a tax-friendly wrapper; the trade-off is the layered charges (premium allocation, mortality, fund management and admin fees), which mean less of your money is invested in the early years when costs are front-loaded.
How the charges add up
This calculator models the charges that matter most over the long run — the premium allocation charge, the annual fund-management charge (capped at 1.35% by IRDAI) and the mortality charge for the cover. On a ₹1.00 L/yr policy over 15 years, those charges add up to an estimated ₹3.73 L — roughly 25% of everything you pay in. Because the FMC is levied on the whole fund every year, the drag compounds: the bigger your fund grows, the more the percentage charge takes in absolute terms.
Tax benefits: 80C and 10(10D)
Premiums qualify for a deduction under Section 80C, up to ₹1.5 lakh a year, and the maturity proceeds are tax-free under Section 10(10D) provided the policy meets the conditions — notably that the annual premium stays within the prescribed limit and the sum assured is at least 10× the premium. For ULIPs bought on or after February 2021, maturity is taxable like equity if annual premium exceeds ₹2.5 lakh. Tax rules change, so confirm the current limits before relying on them.
Switching, lock-in and liquidity
A ULIP lets you switch between equity, debt and balanced funds inside the policy — usually with several free switches a year and no tax on the switch, unlike redeeming a mutual fund. The flip side is a mandatory 5-year lock-in: surrendering before then sends your money to a low-return discontinuance account, and because charges are front-loaded, exiting early often leaves you with less than you paid in. Treat a ULIP as a long-term commitment.
ULIP vs term insurance plus a fund
The honest comparison is to hold the cover constant and split the same budget two ways. A pure term plan buys the identical ₹10.00 L of protection for a small annual premium, freeing up the rest to invest in a low-cost index fund. At the same 10.0% gross return, that unbundled route could build about ₹32.10 L here versus the ULIP's ₹28.55 L — because it sidesteps the bundled charges. A ULIP can still suit someone who values one tax-friendly product; the reference returns are illustrations, not guarantees.
How to use this calculator
Enter your annual premium, term and an expected gross return, then adjust the allocation and fund-management charges to match a specific plan's brochure. The result is a planning estimate, not a quote: real policies add admin fees, GST and may offer loyalty additions, and the market never returns a smooth number every year. Treat the maturity, cover and charge figures as illustrative inputs to a decision, and confirm the exact charges, cover and tax treatment with the insurer before committing.