What is it?
The Term vs Endowment Calculator compares two ways to get the same life cover: an endowment or money-back policy, or a cheap term plan with the rest invested. It shows what Endowment gives, what Term + investing gives, and the Better choice.
Who is it for?
People choosing between term plans and endowment or money-back policies, and policyholders reviewing old plans.
How to use it
- Enter the Endowment / money-back premium a year and Its estimated maturity amount (from the illustration, or the LIC Maturity Calculator).
- Enter the Term plan premium a year (same cover), the Policy term and the Return if you invest the difference.
How it compares
Both give the same life cover; the difference is where the savings go. The Amount invested each year is the endowment premium minus the term premium.
Be fair to both
- Use a realistic return for the investment: 7% for PPF-like safety, 10–11% for long-term equity funds with ups and downs.
- Endowment maturity is tax-free within limits; equity gains above the exemption are taxed. Compare after tax.
- The term + invest route only works if you really invest the difference every year.
Already have an endowment?
Don’t surrender in a hurry; early surrender loses money. Compare surrender, paid-up and continuing values first.
This is an estimate to help you plan, not financial or tax advice. Read the scheme or policy documents, and ask a qualified adviser for big decisions.
Errors and how to fix them
- Term premium higher than endowment: check you entered the same cover for both.
Open the tool: Term vs Endowment Calculator
Still stuck?
Contact support. Tell us which tool or page you were using, what you tapped, what you saw, and your phone or computer and browser (for example: Android phone, Chrome). We reply by email.
Questions, or an error not listed here?
Tell us in the comments: what you were doing, the exact message you saw, and your device and browser. We read every comment and add new fixes to this article.