Compare equivalent policies
Enter options with similar life cover, riders, exclusions and policy duration. A premium comparison is meaningful only when the underlying protection is comparable.
COMPARE WITH CLARITY
Compare term insurance payment options in India
Policy details
Set your current age and the age at which the life cover ends.
Premium payment options
Use premiums for policies with comparable life cover, benefits and policy terms.
Short payment option
years
₹
Long payment option
years
₹
Investment assumption
Choose the expected annual return for investing the premium difference.
%
Enter 0% to test no growth. This calculator accepts rates from 0% to 100%; the upper limit is an input limit, not an expected return.
Comparison summary
Side by side comparison
| Metric | Short payment option | Long payment plus investment |
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Charts are unavailable. Your numerical comparison and annual projection are shown below and above.
Corpus growth while investing
Corpus after future premiums
Annual corpus projection
| Age | Opening corpus | Investment return | Premium paid | Net gain or loss | Closing corpus |
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HOW TO USE THE COMPARISON
Understand the tradeoff before choosing
A limited payment policy asks for a higher annual premium over fewer years. A regular payment policy spreads a lower premium across more years. This calculator explores what may happen if the annual saving from the longer payment schedule is invested consistently.
Use a realistic return
Market returns are uncertain and investment income may be taxable. Test conservative rates instead of relying on an optimistic long term projection.
Consider behaviour and risk
The longer payment strategy assumes every premium saving is invested on schedule. Missed contributions or weak returns can materially reduce the projected corpus.
How the corpus is projected
The annual premium difference is added at the end of each year during the short payment period. After that, annual investment growth is added before each remaining long payment premium is deducted.
Corpus this year = Previous corpus × (1 + return rate) + annual premium differenceTerm insurance premium comparison questions
A short payment plan lets you finish paying premiums in a limited number of years while life cover continues until the policy end age. Its annual premiums are usually higher because payments are concentrated into a shorter period.
A long payment plan spreads premiums across more years, often close to the full policy term. Its annual premium is usually lower, although the cumulative premium paid can be higher.
It is the annual saving from choosing the lower long payment premium instead of the higher short payment premium. The calculator assumes this difference is invested once at the end of each year during the short payment period.
The calculator compounds the existing corpus for one year and then adds that year's premium difference. It repeats this process for every year in the short payment duration.
It is the annual return the accumulated corpus would need to generate an amount equal to one future long payment premium without drawing down the principal. It is not the investment return that makes the two policy payment strategies financially equivalent.
Not automatically. The result depends on investment discipline, taxes, risk, actual returns, policy terms and your ability to keep paying premiums. The calculator illustrates a financial tradeoff and does not recommend a policy.
The long payment premium is paid for many more years. A smaller annual amount can therefore add up to a larger cumulative premium over the full payment duration.
Use a conservative long term return that reflects the investment type, fees and taxes. Try several rates because actual returns can vary significantly from a fixed projection.
The projection will show a shortfall and may eventually reduce the corpus to zero. You would need to fund the remaining premium from other income to keep the policy active.
No. It does not automatically include taxes, inflation, policy lapses, riders, changes in premiums, fees or changing investment returns. Review the insurer's policy documents and seek professional advice where needed.
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This calculator provides estimates for educational purposes only. Results depend heavily on the investment return assumption and do not account for taxes, inflation, policy features, lapses, rider benefits or changing returns. Compare official policy illustrations and consult a qualified financial adviser before making an insurance or investment decision.