Insurance policy return

An endowment policy pays back more rupees than you put in, which is not the same as a good return. Enter what your policy says and this works out what it actually earns a year, next to inflation and a plain fixed deposit.

The policy

Common termsLIC Jeevan Labh uses these three

Sum assured (₹)

Policy term (years)

Years you pay premiums

Premium a year (₹)

Bonuses

From your policy document or the illustration you were given. Bonuses are declared each year and are not guaranteed, so past rates are an estimate, not a promise.

Simple reversionary bonus (₹ per 1,000 of sum assured, a year)

Final additional bonus (₹ per 1,000, once at maturity)Usually only on longer terms

Add GST to the premium (4.5% the first year, 2.25% after)

Compare with

If the same money went into an FD at (%)

Inflation to measure against (%)

Not connected with LIC or any insurer. Every figure above is one you enter; nothing here is a quote, and a policy also carries life cover, which a deposit does not.