Find your suitable insurance plan
2066
4 min read
Updated on Feb 14, 2024
In general, life insurance policies do not provide any return at maturity to the insured if the person outlives the plan. They secure the policyholder’s life against death during the policy term and pay the nominee a death benefit in such circumstances. However, some plans like ULIPs and Endowment policies do offer guaranteed returns at maturity.
Unit Linked Insurance or ULIP Plan is a market-linked insurance policy that offers market-linked returns as well as protection for your life. On the other hand, Endowment Policies are a saving plan that helps increase your money/savings gradually. Depending on the individual needs and risk appetite, one can choose the particular policy to suit their requirement.
However, when it comes to calculating returns on different policies, it becomes a bit complicated compared to calculating returns on bank accounts. This is mainly due to fluctuating bonuses and varied charges applied to policies. Let us discuss how to calculate returns on insurance policies.
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It is essential to stay updated with the plan details to calculate returns that one can receive from an insurance policy. For this, you can take the steps below to calculate your policy’s returns.
This is the first step towards calculating your insurance policy’s return on investment. You must read your policy document in detail to understand the crucial information related to the policy, like applicable charges, premiums to be paid, bonuses to be earned, etc. Once you have assessed the document well, prepare a table with the below details:
|
Year |
Premium |
Charges |
Final amount |
Bonus/Interest |
Balance |
|
1 |
P |
X |
P – X |
Y |
|
The perks and charges associated with varied plans are different. If you want to calculate the exact returns on your policy, you must provide accurate numbers of these particular details. Next, you need to subtract the varied charges applied to your plan from the premium amount that you pay per year. Now, add interest or bonus applicable under the plan (if any). After making all the above calculations, whatever amount you receive will be the return you will make on your insurance policy. You have to continue the above calculations for the entire term of your policy.
Finally, the last step to calculate the returns on your insurance policy is to add the assured benefits/additions offered under your plan to estimate your investment decision.
The following are some of the best plans to invest in India which offer good returns:
|
Plan Name |
Plan type |
Age of entry |
Age of maximum maturity |
Policy term |
Fund options |
|
Bajaj Allianz Future Gain |
ULIP | 1-63 years | 70 years | 7 – 30 years |
7 |
|
Aviva Igrowth |
ULIP | 18-50 years | 60 years | 10/15/20 years |
3 |
|
Bharti Axa Efuture Invest |
ULIP | 18-60 years | 70 years | 10 years |
6 |
|
Aegon Invest |
ULIP | 7-55 years | 70 years | 10/15/20/25 years |
5 |
|
Bajaj Allianz Retire Rich |
Unit Linked Pension Plan | 30 – 73 years | 80 years | 7-30 years |
3 |
|
Canara HSBC Smart Monthly Income Plan |
ULIP | 18-50 years | – | 5 – 30 years |
7 |
|
HDFC Click2Invest |
ULIP | 30 days – 65 years | 75 years | 5 – 20 years |
8 |
|
Edelweiss Tokio Guaranteed Income Plan |
ULIP | 0-60 years | 70 years | 5-25 years |
7 |
|
ICICI Pru Smart Life |
ULIP | 20 – 54 years | 20 – 64 years | 10-25 years |
8 |
To Conclude
Estimating the returns you are likely to receive on your life insurance policy is important. There are many ways of doing so. However, using a life insurance plan calculator is an easy and effective way to evaluate the return on investment for your life insurance plan. But before buying the policy, make sure to read the document carefully and do a thorough analysis in terms of the benefits to be earned from the plan.
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There are multiple ways of calculating ROI. The most common is the net income divided by the total cost of the investment, i.e., ROI = Net income / Cost of investment x 100. Use a LIC return calculator to calculate the return on investment.
It isn't easy to calculate the exact maturity value of a life insurance policy. However, one can get a value that is a close estimate of the maturity benefit earned at the end of the policy term. The general formula is Sum Assured + Bonuses + Final Additional Bonus (if declared) equals maturity. You can use a LIC premium maturity calculator to calculate the term life insurance maturity value.
A LIC plan calculator is an online tool that gives you a near-accurate estimate of the premium charged for a policy.
LIC Jeevan Jyoti Policy Calculator is a LIC premium calculator online. Policyholders can accurately estimate the premiums that need to be paid and the benefits that they are entitled to.
Yes, you can access the LIC bonus calculator to estimate the bonus you receive under your LIC plan.
LIC eTerm Plan Premium Calculator is an online tool created to help customers evaluate the premium rate of LIC's Term Insurance Policies in a simple and hassle-free way.
PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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