Investing the annual savings from a higher initial life insurance premium payment (Rs 33,000 per year for 5 years) in an equity mutual fund with 10% annual returns could yield approximately 7 lakh rupees over 25 years, suggesting this investment strategy is more profitable than paying a lower annual premium for a longer duration.
"if you do opportunity cost analysis no you will lose more than 7 lakh rupees so if you had chosen the first option you could have saved 33,000 rupes per year for the first 5 years which you could have invested in an equity mutual fund and even let's say we assume only 10 percentage returns every year you could have ended up with 7 lakhs at the end of 25 years"
