Term Insurance vs Endowment: The Real Cost

Ask around about life insurance and most people mumble something about "maturity bonus" — that's endowment talk, and it's expensive.
A 30-year-old buying ₹1 crore term cover pays roughly ₹12,000–15,000 a year. The same ₹1 crore through an endowment plan can cost ₹80,000–1,00,000 a year, because you're paying for insurance AND a mediocre investment, bundled together.
That's a ₹65,000+ yearly gap you could be investing instead.

What this means for you

• Term insurance gives real, adequate cover for your family without draining your monthly budget.
• Endowment locks up money at 4-6% returns — barely ahead of inflation, sometimes behind it.
• The premium difference, invested in a SIP at 12%, can grow to ₹35 lakh+ in 15 years.

What you can do

• Buy pure term cover worth 10-15x your annual income — that's the standard, sensible thumb rule.
• Invest the premium you save separately in mutual funds or PPF instead of letting an agent bundle it for you.

Insurance protects your family; investing grows your money — keep the two jobs separate and both work harder for you.

Grow with clarity 🌱