Calculator Inputs
Example Data Table
| Case | Plan Type | Sum Assured | Premium | Term | Bonus Rate / 1000 | Estimated Net Maturity |
|---|---|---|---|---|---|---|
| Example A | Endowment Plan | ₨1,000,000 | ₨25,000 Monthly | 20 Years | 35 | ₨2,043,750 |
| Example B | Money-Back Plan | ₨1,500,000 | ₨80,000 Annual | 18 Years | 28 | ₨2,332,900 |
| Example C | Child Savings Plan | ₨800,000 | ₨15,000 Monthly | 15 Years | 32 | ₨1,476,280 |
These are illustrative examples only. Actual insurer terms, declared bonuses, taxes, and rider conditions can differ materially.
Formula Used
1) Annual premium paid in year y
Premium per payment × payments per year × (1 + escalation rate)^(y − 1)
2) Guaranteed additions
(Sum assured ÷ 1000) × guaranteed addition rate × policy term × paid-up factor
3) Reversionary bonus
(Sum assured ÷ 1000) × annual bonus rate × policy term × paid-up factor
4) Final additional bonus
(Sum assured ÷ 1000) × final additional bonus rate × paid-up factor
5) Gross maturity value
Effective sum assured + guaranteed additions + bonuses + final bonus + loyalty addition + rider value − survival benefits received
6) Estimated tax
Max(0, gross maturity − total premiums − total fees) × tax rate
7) Net maturity value
Gross maturity − estimated tax
8) Inflation-adjusted value
Net maturity ÷ (1 + inflation rate)^policy term
9) Alternative invested value
Each year’s premium compounded at the alternative return rate until maturity
This model estimates maturity using bonus-style assumptions. It does not replace policy wording, insurer benefit illustrations, or tax advice.
How to Use This Calculator
- Choose the policy category and preferred currency.
- Enter the basic sum assured and premium per payment.
- Select the payment frequency and both policy terms.
- Fill in guaranteed additions, bonuses, loyalty amounts, and riders.
- Add fees, taxes, inflation, and any already received survival benefits.
- Click Calculate Maturity to see the result, table, and graph.
FAQs
1) What does this calculator estimate?
It estimates a savings-oriented life policy’s maturity value using premiums, bonuses, additions, riders, taxes, and inflation assumptions. It also compares policy maturity against an alternative investment path.
2) Is the maturity value guaranteed?
Not fully. Basic sum assured and declared guaranteed additions may be fixed, but reversionary bonuses, loyalty additions, and final bonuses usually depend on insurer performance and future declarations.
3) Why include inflation in the result?
Nominal maturity can look large but buy less later. Inflation-adjusted value helps you judge the policy’s real purchasing power at the end of the chosen term.
4) What is the paid-up factor?
It reduces projected benefits when a policy is no longer fully funded. A lower paid-up factor means only part of the original maturity entitlement is assumed to remain active.
5) Should taxes always be applied?
No. Tax treatment depends on jurisdiction, policy structure, and exemptions. This field is only an estimate so you can stress-test maturity proceeds under a chosen assumption.
6) Why compare with an alternative return rate?
It shows what the premium stream might become if invested elsewhere at a chosen annual return. That comparison helps evaluate opportunity cost and product efficiency.
7) Can this calculator handle money-back policies?
Yes, approximately. Enter any survival benefits already received so the final maturity estimate reflects earlier payouts and produces a more realistic end-of-term figure.
8) Is this suitable for exact policy illustrations?
Use it for planning, not for binding quotations. Exact policy illustrations depend on insurer-specific declarations, guaranteed schedules, rider clauses, taxes, and contract wording.