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Years Policy A Policy B (Zero cost) Opportunity Cost Invested opportunity cost
1 (10,339) (11,304) 965 22,400
2 (10,339) (11,304) 965 19,649
3 (10,339) (11,304) 965 17,236
4 (10,339) (11,304) 965 15,119
5 (10,339) (11,304) 965 13,262
6 (10,339) (11,304) 965 11,634
7 (10,339) (11,304) 965 10,205
8 (10,339) (11,304) 965 8,952
9 (10,339) (11,304) 965 7,852
10 (10,339) (11,304) 965 6,888
11 (10,339) (11,304) 965 6,042
12 (10,339) (11,304) 965 5,300
13 (10,339) (11,304) 965 4,649
14 (10,339) (11,304) 965 4,078
15 (10,339) (11,304) 965 3,577
16 (10,339) (11,304) 965 3,138
17 (10,339) (11,304) 965 2,753
18 (10,339) (11,304) 965 2,415
19 (10,339) (11,304) 965 2,118
20 (10,339) (11,304) 965 1,858
21 (10,339) (11,304) 965 1,630
22 (10,339) (11,304) 965 1,430
23 (10,339) (11,304) 965 1,254
24 (10,339) (11,304) 965 1,100
25 229,920 - 174,540
Even at 14% opportunity cost returns, zero cost term
You get ~INR 2.3 L after 25 years in a zero cost term
nity cost returns, zero cost term insurance is better than regular term insurance
fter 25 years in a zero cost term insurance. Had you taken the normal term insurance, your invested savings would yield only ~1.75 L
d yield only ~1.75 L
Returns assumed 14%
x
ular pay plan is more than INR 1 Crore. So never opt fot limited pay