ULIP Calculator India — Returns After Charges & LTCG Tax 2026

Last updated: 29 April 2026 Reviewed by Deepa Krishnan, CFP

**ULIP (Unit Linked Insurance Plan)** combines life insurance with market-linked investments. However, multiple layers of charges — mortality charges, premium allocation charges (5–8%), fund management charges (1.35% cap), policy admin charges — significantly reduce effective returns compared to a pure term insurance + mutual fund combination. This calculator shows your actual post-charge return.

Annual Premium (₹)

Expected Fund Return (% p.a.)

Policy Term (Years)

ULIP Maturity Value (Est.) —

Mutual Fund Corpus (Same Premium) —

Total Premium Paid —

Charges Impact (ULIP vs MF) —

View Year-by-Year Breakdown

Real-World Examples — 2026

₹1 lakh/year ULIP vs Term + MF

ULIP at 10% for 15 years (assuming 2% effective charges): approximately ₹22 lakh maturity. Term insurance (₹1 crore cover) at ₹15,000/year. MF with remaining ₹85,000/year at 12% for 15 years: ₹37.6 lakh. Verdict: Term + MF gives ₹15 lakh more corpus with ₹1 crore more insurance cover.

ULIP for high earners — tax angle

For a 30% bracket investor with ₹2.5 lakh/year ULIP premium: maturity is tax-free (Section 10(10D)). At 30% tax on MF LTCG (if gained), ULIP might save ₹2–4 lakh tax. But the charge drag still likely exceeds the tax saving. Run the numbers carefully.

Frequently Asked Questions

Should I buy ULIP or separate term + mutual fund?

Separate term + MF is almost always better. A ULIP combines insurance and investment with high charges (3–7% p.a. in early years). Compare: ₹1 lakh/year in ULIP at 10% for 15 years = approximately ₹22 lakh. Same in MF at 12% (net of 0.5–1% expense ratio) = ₹36 lakh. Plus a ₹1 crore term plan costs ₹15,000/year — far more cover than ULIP provides.

When does ULIP make sense?

ULIP makes sense when: you need life cover + investment in one product (simple), you are in the 30% tax bracket (ULIP maturity is tax-free under Section 10(10D) if annual premium ≤₹2.5 lakh), you want automatic rebalancing between equity and debt, and you will stay for 10+ years (charges reduce significantly after year 5).

What are the main charges in ULIP?

ULIP charges: Premium Allocation Charge (1–5% deducted upfront), Fund Management Charge (1–1.5% p.a.), Mortality Charge (insurance cost, increases with age), Policy Administration Charge (₹100–₹250/month), and Discontinuation Charge if surrendered early. Total charges can be 3–7% of corpus in early years.

Is this calculator free?

Yes, completely free on CalcPhi.

Are my inputs stored?

No. Calculations run in your browser.

Is it mobile-friendly?

Yes. Works on all modern smartphones.