Insurance Returns Calculator
బీమా పాలసీ రాబడి కాలిక్యులేటర్
The real yearly return of an LIC or other endowment policy from its premiums and maturity amount, against the same premiums in PPF.
ఎల్ఐసీ వంటి ఎండోమెంట్ బీమా పాలసీ అసలు వార్షిక రాబడి ఎంత: ప్రీమియంలు, మెచ్యూరిటీ మొత్తం నుంచి, పీపీఎఫ్తో పోల్చి.
Your result
Return a year ఏడాది రాబడి
What the premiums earn each year, compounded yearly (life cover not counted)
- You pay in allమొత్తం చెల్లింపు
- ₹7,50,000
- You get at maturityమెచ్యూరిటీ
- ₹15,00,000
- The same premiums in PPF, at today's 7.1%పీపీఎఫ్లో అయితే
- ₹19,10,862
At today's PPF rate, PPF would give ₹4,10,862 more for the same premiums (the rate is reset every quarter). A term plan for the life cover and PPF or a SIP for the savings usually does better than one policy for both.
15 premiums of ₹50,000, at the start of each year; maturity at the end of year 20.
Last updated : PPF at 7.1% (October–December 2026) for the comparison. The government sets it every quarter: check the current rate at the post office or your bank.
How to calculate the return on an insurance policy
Enter the yearly premium, the years you pay it, the years to maturity and the maturity amount from your policy bond or benefit illustration. The calculator finds the yearly rate at which those premiums, paid at the start of each year, would grow to the maturity amount: the rate a deposit compounding once a year would need to pay to give you that money (the internal rate of return, IRR).
Example: ₹50,000 a year for 15 years, with ₹15,00,000 at the end of year 20, doubles the money you pay in (₹7,50,000), yet it is a return of 5.28% a year. The same premiums in PPF at today's 7.1% would be ₹19,10,862 (the rate is reset every quarter).
LIC and endowment policy returns: what "double your money" earns
A 20-year policy that pays back twice the premiums, with a premium every year, earns 6.22% a year. The same premiums in PPF at 7.1% grow to 2.22 times what you pay in.
| Maturity ÷ premiums paid | 15-year policy | 20-year policy | 25-year policy |
|---|---|---|---|
| 1.5 × | 4.92% | 3.72% | 2.99% |
| 2 × | 8.26% | 6.22% | 4.98% |
| 2.5 × | 10.79% | 8.1% | 6.48% |
| 3 × | 12.84% | 9.6% | 7.67% |
| PPF at 7.1% gives | 1.81 × | 2.22 × | 2.75 × |
Premiums paid every year of the term; any premium amount gives the same rates. Enter your own policy above for its figure.
LIC policy vs PPF or SIP
PPF is backed by the government and tax-free: compare it with your policy in the PPF calculator. A SIP in a mutual fund can earn more, but its return is not fixed or guaranteed; see what a monthly amount could grow to in the SIP calculator. If you need the life cover, a term plan gives it for far less.
Good to know
- "Your money doubles" says nothing about time: a single sum that doubles in 20 years earns 3.5% a year, and premiums paid every year that double by year 20, 6.2%. Ask for the yearly return, or work it out here.
- Bonuses in an endowment plan are declared each year and are not guaranteed; take the maturity amount from the benefit illustration at its lower assumed rate for a careful figure.
- Surrendering a policy in its early years returns far less than you paid in, so check this before you buy, not after.
- The maturity of a policy issued on or after 1 April 2023 (not a ULIP) is taxed when your premiums on such policies come to more than ₹5 lakh a year in all: the gain over the premiums is income. The return here is before that tax; PPF's is tax-free.
Questions
Can it work out my LIC maturity amount?
No: the maturity amount comes from your policy (the bond, the benefit illustration or the insurer's statement), with the bonuses declared. This works out the yearly return that amount gives on your premiums.
My premium is monthly. What do I enter?
The year's total: 12 times the monthly premium. The return shown is then a little lower than the real one, because monthly premiums are paid later in the year.
What about a money-back plan?
Add every payout to the maturity amount. The return shown is then a little lower than the real one, because money paid back earlier is worth more than money at the end.
Does the life cover not count?
It does, but it can be bought far cheaper on its own: compare a term plan's premium for the same cover, and invest the difference.
What next? తర్వాత ఏం చూడాలి
See all calculators →Estimates for planning from the figures you enter. The insurer's quote, the policy wording and IRDAI's rules decide the actual cover, premium and payout.
