Structured Product vs Endowment plan
Same premium. Two different endings.
- An endowment bundles your cover with a low-return savings plan
- Split the same money into pure term cover plus a mutual-fund SIP
- Same protection, a dramatically bigger corpus
₹
- Endowment premium for this cover: ₹80,293 / month (₹9.64 L / year)
- That is the budget we restructure into term + SIP
32
15%
67
Extra corpus by age 80 • same cover, same outlay
₹60.11 Cr
Term + SIP leaves you about 16.8× more than the endowment policy.
What most people already have
Endowment Life Insurance
- One product for both cover and savings
- A guaranteed-style return that barely outpaces inflation
- Premium / month₹80,293
- Total premiums paid₹3.45 Cr
- Life cover₹1 Cr
- Matures at age67
Maturity benefit₹3.80 Crafter paying ₹3.45 Cr in premiums
The structured alternative
Term Insurance + Mutual Fund SIP
- Buy the same cover as cheap term insurance
- Invest everything left over in a disciplined SIP
- Life cover (pure term)₹1 Cr • same
- Term premium / month₹8,029
- Premium paying term20 years
- Total term premiums paid₹3.37 Cr
- Into SIP / month₹72,264
- Total invested₹3.04 Cr
- Investment horizon35 years
- Assumed CAGR (net)14%
Projected corpus*₹63.91 Crfor the same ₹1 Cr of cover
How the two grow apart
EndowmentTerm + SIP
Assumptions & disclosures
Black Numbers Law · AMFI-registered Mutual Fund Distributor · ARN-342488
Structured Product vs Money-back income plan
Same money in. A rising income for life.
- A money-back plan pays a fixed income that never grows
- Split the same money into pure term cover plus a mutual-fund SIP
- A rising income for life, instead of a flat one
₹
Estimated pure life cover₹29 Lfrom ₹1,500 / month at age 45
15%
12%
20
100
32
Your income from age 60 • rising every 5 years, for life
Starting at about 4.1× the money-back plan's flat income, for life.
The plan you're offered
Money-back Income Plan
- A fixed lifelong income, plus a one-time bonus at maturity
- Income stays flat while your expenses keep rising
- Life cover₹22 L
- You invest₹27.0 L
- Total income received₹69.2 L
- Maturity bonus₹2.39 Cr
- Lifetime "you get"₹3.08 Cr
Income / year • flat forever₹1.73 Lfor 40 years, then ₹2.39 Cr at age 100
The structured alternative
Term + SIP, then step-up SWP
- 10% buys real cover, 90% compounds in a SIP
- Withdraw 8% a year, stepping up 25% every five years, for life
10% • Term insurance
₹1,500 / mo
90% • Mutual fund SIP
₹13,500 / mo
- SIP contributions run for 15 years
- Term premium payable for 20 years, cover active to age 65
- Withdrawals begin at age 60
- Life cover (pure term)₹29 L
- Premium paying term20 years
- Corpus at age 60₹0.90 Cr
- Total income drawn₹7.89 Cr
- Corpus left at 100*₹99.7 Cr
- Assumed return15%
Starting SWP income / year₹6.58 Lrises 25% every 5 years, for life
Income, five years at a time
- Their income never moves
- Yours steps up 25% every five years, while the corpus keeps compounding underneath
| Age band | Money-back plan | Step-up SWP |
|---|
Your corpus keeps climbing • even as you withdraw more
Money-back maturitySWP corpus
Assumptions & disclosures
Black Numbers Law · AMFI-registered Mutual Fund Distributor · ARN-342488