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Insurance

Term Insurance vs ULIP — Complete Comparison 2025

Term or ULIP — which should you buy? We compare premiums, returns, tax benefits, and who each is right for.

✍️ Marfo Financial Team📅 5 Feb 2025

Term Insurance vs ULIP — Which is Right for You?

What is Term Insurance?

Term insurance provides pure life cover — if you pass away during the policy term, your nominee receives the sum assured. Premiums are extremely low.

Example: A 30-year-old can get ₹1 crore cover for just ₹8,000–₹12,000 per year.

What is ULIP?

ULIP combines life insurance with market-linked investment. Your premium is split between insurance cover and investment in equity/debt funds.

Key Comparison

|---------|----------------|------|
FeatureTerm InsuranceULIP
PurposeLife protectionInsurance + Investment
PremiumVery lowHigh
ReturnsNo maturity benefitMarket-linked
Best forPure protection15+ year horizon

Our Recommendation

Buy term insurance first. Then invest separately in mutual funds — better returns, more transparency, lower costs.

Compare term plans for free →

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