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Policy calculator

Understand policy returns in plain numbers.

Calculate XIRR for LIC and other policy cash flows so your family can compare them with alternate investments.

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LIC Policy Return Calculator

How the policy return calculation works

The tool computes XIRR — the single annualised rate that makes all premiums paid and the final maturity received balance to zero. XIRR handles irregular timings correctly, unlike naive "total profit ÷ total paid" figures that ignore how long your money stayed locked.

Worked example

A typical endowment-style policy: ₹1,681 monthly premium for 15 years, ₹7,70,000 maturity benefit:

Monthly premium₹1,681
Premium paying term15 years
Total premiums paid₹3,02,580
Maturity amount₹7,70,000
Annualised return (XIRR)≈ 11.55%

Run your own policy through the tool — traditional policies commonly work out to 4–6% XIRR once real bonus history is included, which reframes the insurance-vs-invest comparison entirely.

Frequently asked questions

What XIRR should a good policy deliver?
Judge against alternatives: pure term insurance plus an equity SIP has historically outperformed most endowment plans whose XIRR lands between 4–6%. If a policy quotes big maturity numbers, this calculator reveals the modest rate hiding behind them.
Why XIRR instead of absolute returns?
Absolute return ignores time. Doubling money in 5 years (≈14.9% p.a.) and in 20 years (≈3.6% p.a.) are wildly different outcomes — XIRR puts every pattern of cash flows on one comparable scale.
Should I surrender a low-XIRR policy mid-way?
Compare the surrender value today versus continuing to maturity, then weigh the freed premiums against your best alternative. Paid-up conversion sometimes beats surrender. Model both futures before deciding — sunk premiums alone should not drive the call.
Does this replace insurance needs analysis?
No. Return measurement covers the investment side only. Protection needs are better served by inexpensive term cover sized at 10–15× annual income, keeping investments separate and measurable.

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