Know your real return
Insurers show you what you'll pay and what you'll get back — almost never the annualised return that connects the two. Enter your premiums and payouts exactly as shown in your benefit illustration, and this tool works out the true guaranteed IRR.
1. What you pay in
2. What you get back
3. Compare against
Why IRR is the number that actually matters
Premium vs payout tells you nothing on its own
"Pay ₹24 lakh, get ₹40 lakh back" sounds appealing until you ask the one question it doesn't answer: over how many years? A gain that takes 15 years looks very different from the same gain over 25. IRR annualises the whole cash flow — every premium out, every payout in, on the exact years they happen — into a single rate you can line up against an FD, PPF, or anything else with a known return.
How to read your benefit illustration
Every illustration typically shows two sets of figures: a guaranteed column and a non-guaranteed, assumed-return column. For any product with a guarantee, base this calculator only on the guaranteed numbers. The assumed-return column is a projection at a rate the insurer is required to show for illustration purposes — it is not a promise, and mixing it into a "guaranteed IRR" defeats the point of checking one.
What this number does and doesn't tell you
IRR tells you the annualised return on the cash flows you entered — nothing more. It doesn't capture what happens if you surrender early (usually a loss), the value of any life cover running alongside the policy, or liquidity if you need the money mid-way. Weigh those separately; don't fold them into the rate.