MoneyLens / Life insurance & savings
Your policy, explained.
Endowment plan · Sarayu Assured Savings · Sarayu Life Insurance Ltd
Illustrative
Endowment plan · Before buying
Term15 years
Real return
2.87%
a year, on guaranteed benefits only
Premium a year
₹1,00,000
for 10 years
Life cover
₹11,00,000
11.0× the premium
Guaranteed at maturity
₹13,50,000
after 15 years
An endowment plan with bonuses from Sarayu Life Insurance Ltd: ₹1,00,000 a year for 10 years, over 15 years, with ₹11,00,000 of life cover. ₹13,50,000 is guaranteed at maturity; bonuses come on top but aren't guaranteed. That's about 2.87% a year on guaranteed benefits only. The 4% and 8% figures are illustrations IRDAI requires, not forecasts.
Myra's most important observations
Prefilled from your policy · edit freely
The real return: what the policy earns a year
Prefilled from Illustration p.2, Benefits
₹1,00,000
10 years
15 years
₹13,50,000
30%
Yearly return
2.87%₹10,00,000 in · ₹13,50,000 back
A taxable deposit would need
4.17%before tax, at a 30% slab, to match (if the payout is tax-free: to verify)
Money paid back years later is worth less than money paid in today; the yearly return is what accounts for that. The difference shown above is in rupees, not adjusted for time.
Assumptions & limits. Premiums at the start of each year; the maturity amount at the end of the term. The yearly return (IRR) is the rate at which what goes in equals what comes out, so it can be set beside a deposit's rate. The 4% and 8% figures are two scenarios IRDAI makes every insurer illustrate, not forecasts or promises; they include bonuses that may or may not be declared. Life cover is on top of this return and isn't valued here.