Term Plan: Regular Pay + SIP vs Limited Pay
Prove that Regular Pay + SIP beats Limited Pay — see your bonus corpus at maturity
Plan Comparison
Policy Details
Same life cover for both Regular & Limited Pay plans
Premium Frequency
Return Rates
SIP growth rate during Yr 1–Yr 10
Corpus growth rate during Yr 11–Yr 30
Your SIP Amount
₹15,000/yr
Premium difference (₹30,000 − ₹15,000) invested in SIP
Regular Pay + SIP wins by ₹8.01 L
After funding all regular premiums from Yr 11 to Yr 30, you still have a bonus corpus of ₹8.01 L at maturity.
Regular Pay + SIP
Life Cover
₹1.00 Cr
Total Premiums Paid
₹4.50 L
SIP Corpus at Switch
₹3.07 L
Total SIP Invested
₹1.50 L
Limited Pay
Life Cover
₹1.00 Cr
Total Premiums Paid
₹3.00 L
Premium Period
10 Years
No SIP Corpus
₹0
Your Bonus
Corpus at Maturity
₹8.01 L
Premiums Funded by SIP
₹3.00 L
Corpus Sustains
Full 30 Years
Policy TimelineLife Cover: ₹1.00 Cr
Regular Pay + SIP vs Limited Pay
Year-by-year comparison with life cover reference
SIP Corpus Journey
Year-by-Year Breakdown
| Year | Phase | Regular Premium | Limited Premium | SIP / Withdrawal | Interest | Corpus |
|---|---|---|---|---|---|---|
| 1 | SIP | ₹15,000 | ₹30,000 | +₹15,000 | +₹1,902 | ₹16,902 |
| 2 | SIP | ₹15,000 | ₹30,000 | +₹15,000 | +₹4,046 | ₹35,948 |
| 3 | SIP | ₹15,000 | ₹30,000 | +₹15,000 | +₹6,462 | ₹57,410 |
| 4 | SIP | ₹15,000 | ₹30,000 | +₹15,000 | +₹9,183 | ₹81,593 |
| 5 | SIP | ₹15,000 | ₹30,000 | +₹15,000 | +₹12,250 | ₹1.09 L |
| 6 | SIP | ₹15,000 | ₹30,000 | +₹15,000 | +₹15,706 | ₹1.40 L |
| 7 | SIP | ₹15,000 | ₹30,000 | +₹15,000 | +₹19,601 | ₹1.74 L |
| 8 | SIP | ₹15,000 | ₹30,000 | +₹15,000 | +₹23,989 | ₹2.13 L |
| 9 | SIP | ₹15,000 | ₹30,000 | +₹15,000 | +₹28,934 | ₹2.57 L |
| 10 | SIP | ₹15,000 | ₹30,000 | +₹15,000 | +₹34,506 | ₹3.07 L |
| 11 | SWP | ₹15,000 | — | −₹15,000 | +₹25,446 | ₹3.17 L |
| 12 | SWP | ₹15,000 | — | −₹15,000 | +₹26,313 | ₹3.28 L |
| 13 | SWP | ₹15,000 | — | −₹15,000 | +₹27,252 | ₹3.41 L |
| 14 | SWP | ₹15,000 | — | −₹15,000 | +₹28,269 | ₹3.54 L |
| 15 | SWP | ₹15,000 | — | −₹15,000 | +₹29,370 | ₹3.68 L |
| 16 | SWP | ₹15,000 | — | −₹15,000 | +₹30,563 | ₹3.84 L |
| 17 | SWP | ₹15,000 | — | −₹15,000 | +₹31,855 | ₹4.01 L |
| 18 | SWP | ₹15,000 | — | −₹15,000 | +₹33,254 | ₹4.19 L |
| 19 | SWP | ₹15,000 | — | −₹15,000 | +₹34,769 | ₹4.39 L |
| 20 | SWP | ₹15,000 | — | −₹15,000 | +₹36,409 | ₹4.60 L |
| 21 | SWP | ₹15,000 | — | −₹15,000 | +₹38,186 | ₹4.83 L |
| 22 | SWP | ₹15,000 | — | −₹15,000 | +₹40,111 | ₹5.08 L |
| 23 | SWP | ₹15,000 | — | −₹15,000 | +₹42,195 | ₹5.36 L |
| 24 | SWP | ₹15,000 | — | −₹15,000 | +₹44,452 | ₹5.65 L |
| 25 | SWP | ₹15,000 | — | −₹15,000 | +₹46,897 | ₹5.97 L |
| 26 | SWP | ₹15,000 | — | −₹15,000 | +₹49,544 | ₹6.31 L |
| 27 | SWP | ₹15,000 | — | −₹15,000 | +₹52,411 | ₹6.69 L |
| 28 | SWP | ₹15,000 | — | −₹15,000 | +₹55,516 | ₹7.09 L |
| 29 | SWP | ₹15,000 | — | −₹15,000 | +₹58,879 | ₹7.53 L |
| 30 | SWP | ₹15,000 | — | −₹15,000 | +₹62,521 | ₹8.01 L |
Key Numbers
Life Cover
₹1.00 Cr
Premium Saved
₹1.50 L
SIP Corpus at Switch
₹3.07 L
Premiums Funded
₹3.00 L
Bonus at Maturity
₹8.01 L
How This Calculator Works
Accumulation Phase
You pay Regular Pay premium and invest the difference (₹15,000/yr) as SIP for 10 years at 12% returns.
Distribution Phase
From Yr 11, the SIP corpus funds Regular Pay premiums (₹15,000/yr) while growing at 8%.
Expert Insights
The power of compounding makes even small premium differences grow into substantial corpora over 10-15 years of SIP accumulation.
Both Regular Pay and Limited Pay offer identical life cover of ₹1.00 Cr. The only difference is how you pay — and where your money works harder for you.
Market returns are not guaranteed. The accumulation phase uses equity-based growth — actual returns may vary. Use conservative estimates for planning.
Talk to the Trustner team to find the right SIP strategy and term plan combination based on your risk profile and goals.
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. Past performance does not guarantee future returns. The information provided on this platform is for educational purposes only and should not be considered as financial advice. Please consult a qualified financial professional before making investment decisions.
Term insurance plus a SIP — protection and growth, kept separate
"Buy term, invest the rest" is one of the most durable pieces of personal-finance wisdom. Instead of a bundled plan that mixes insurance and investment, you buy a pure term plan for a large life cover at a low premium, and invest the money you save in a mutual fund SIP for growth. The two jobs — protecting your family and building wealth — are handled by the right tool for each.
This calculator helps you split a budget between a term premium and a SIP, and projects both the cover your family gets and the corpus the SIP could build. For most people this structure delivers far more life cover and a more flexible, transparent investment than combining the two into a single product.
How this calculator works
- 1Enter your total monthly or annual budget for protection plus investment.
- 2The calculator allocates a term-insurance premium for adequate cover and directs the balance to a SIP.
- 3It projects the life cover and the SIP corpus over your horizon.
Frequently asked questions
Is term insurance plus a SIP better than a bundled plan?
For most people, yes. A pure term plan buys a large cover cheaply, and a mutual fund SIP invests the rest transparently and flexibly. A bundled plan (like an endowment or ULIP) usually provides less cover and less flexible investment for the same outlay. Keeping the two separate lets each do its job well.
How should I split my budget between term and SIP?
First secure adequate life cover — a pure term plan for that costs relatively little. Then direct the remaining budget to a SIP for growth. Because term premiums are small relative to cover, the large majority of a "term plus SIP" budget typically goes into the SIP.
Can I change the SIP later without affecting my cover?
Yes — that is a key advantage of keeping them separate. You can increase, pause or redirect a mutual fund SIP as your circumstances change, while your term policy continues independently. In a bundled product the two are locked together, reducing that flexibility.
Insurance is the subject matter of solicitation. For education only; not a recommendation of any product. Mutual funds are subject to market risks.
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