Your policy, explained.
The real return
Calculated| Paid back | A year | |
|---|---|---|
| Guaranteed benefits only | ₹13,50,000 | 2.87% |
| 4% illustration (not guaranteed) | ₹15,00,000 | 3.88% |
| 8% illustration (not guaranteed) | ₹21,00,000 | 7.12% |
| Premiums paid in | ₹10,00,000 |
The yearly return (IRR) accounts for when each rupee goes in and comes back, so it can be set beside a deposit's rate. The 4% and 8% rows are the two scenarios IRDAI makes every insurer illustrate: not forecasts, promises or expected returns. Life cover is on top.
Tax on the payout
To verify- Premium as % of the sum assured10.0% · limit 10%
- Premiums a year, across policies issued from 1 Apr 2023limit ₹5,00,000
- TDS on a taxable payout (payouts of ₹1,00,000 or more a year)2% of the income part
Schedule II (Sl. No. 2) of the Income-tax Act, 2025, formerly section 10(10D): tax-free while both tests are met. The premium limit counts your other policies issued since then too, so this can't be confirmed until you add their premiums on the check page. TDS isn't the final tax: a taxable gain is taxed at your slab in your return, and TDS counts towards it. The death benefit is always tax-free.
Life cover
11.0× the premium₹11,00,000 is paid if the life assured dies during the term. IRDAI's minimum is 7 times the yearly premium at entry age 34.