Calculator
Enter the two premiums you've actually been quoted — plain term and return-of-premium (ROP) — and see the implied return investing the difference would need to beat the ROP refund.
At 10% assumed returns, term + investing the ₹16,000/year difference beats the ROP refund by ₹4,60,929.
Annual Premium Difference
₹16,000
ROP Refund at Maturity
₹5,60,000
Invested Difference (FV)
₹10,20,929
Implied Breakeven Return
5.1%
Real premiums depend on your age, health, sum assured, and the specific insurer — this tool only ever works with the DIFFERENCE between two premiums you've actually been quoted, not a number it guesses at.
The annual return you'd need on the invested premium difference for it to exactly match what the ROP plan refunds at maturity. If your realistic expected return is above that number, term + invest wins on pure numbers; if it's below, the ROP refund wins. Neither is "always right" — this is the RULES.md-clean framing: the math, not a recommendation.
No — the invested-difference figure is pre-tax growth, while the ROP refund under current tax rules is typically tax-free maturity proceeds. That asymmetry favors ROP somewhat and isn't modeled here; factor it in yourself if it matters to your decision.
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Term and ROP premiums depend on age, health, sum assured, and insurer — nothing this calculator could reasonably guess at. It only ever works with the gap between two real quotes, and computes the return that gap would need to earn for "term + invest" to beat the ROP refund — an honest number, not a recommendation either way.
Disclaimer:Illustrative math only, not insurance advice — doesn't account for the tax treatment difference between investment gains and an insurance maturity payout, or for the discipline required to actually invest the premium difference every year.
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