How To Calculate Real Rate of Return (XIRR) of Your Insurance Plan?

Do you have Endowment plan, ULIP, Whole life insurance plan or any other insurance cum investment policy that gives you big sum of money on maturity?
If yes, then you must watch this video. In this video I have explained in detail that how exactly you can calculate the compounded annual growth rate (XIRR) of any such financial products?
In this video I have shown one insurance policy (from LIC) from my friend. He is paying Rs.1.15 Lakh annual premium for this policy for next 21 years.
After 21 years he will get somewhere around Rs.67 Lakhs. He is very much happy about it.
However, when I shown him the XIRR (Internal Rate of return) of this policy on spreadsheet, he was quiet disappointed!
Watch this video to know how exactly you can also calculate the XIRR of your any insurance cum investment product on spreadsheet?
At the end of video I have given some very important tips that can literally change your financial future!

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References
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SIP Calculator

Term Insurance Plans Premium Comparison

Should You Mix Insurance & Investment?

Should You Invest in ULIPs or Mutual Funds?

How to Calculate CAGR, XIRR & IRR on Spreadsheet?

How to Calculate CAGR on Spreadsheet?

[NUsha-hnjf]

You should also know that LIC will give you term plan without any exclusions where as all the other companies are with exclusions. Plus claiming settlement ratio and repudation history also should be taken care while comparing

[abhishekshukla]

Hi very informative video.Thankyou so much. But I have few concerns hope you will reply:
1.In case of SIP investment person die in 6th month of investment then what amount will receive his family.
2.What is the average life cycle of investment in SIP in India.
3.Can any SIP provider give written on legal bond paper returns that he will provide to customer after 25 years.
Please provide answers of above given concerns. I will be highly obliged to you.

[joydeepchoudhury]

one should deduct gst (if any ), accident benefit charges , mortality charges, extra mortality rates before calculating CAGR in insurance plans . The investible corpus should be taken into account. kindly note that while claiming tax rebates, however, the whole premium could be taken into account . the GST paid if any, is also eligible for tax rebates under sec 80c.

[pramodpandey]

Term plan me about sari condition bhi hoti hai

[parshuramnangare]

Very Informative video, I also agree to invest more in SIP ( equity) instead in LIC plans. because LIC plans have very less rate of returns after spending almost 20-25 years..

[moumishra]

You are showing xirr but what about CAGR ??

[soumen_das]

Even though I favor mutual fund to endowment plan but in this comparison you are missing on the risk factor. Mutual funds don't guarantee returns but in the endowment plan the amount is guranteed.

[LIC]

Dear sir this is not the right comparison plz check all the details before comparison. Do u know which lic plan u r comparing plz check & than

[sonalsurati]

Sir, SIP is not given guaranteed returns, which company give assured returns, sometimes in mutual fund SIP given worse returns

[moumishra]

Bro ye 6.86 % return tax free hai, ,ap agar mutual fund debt fund or fd return ki baat kare o with tax hota hai

[phgandhi]

Sir, Agar koi 15 sal premium bharate hai aur 16 wa sal se whole life pension milta hai muje wo case me irr janna hai to kese kar shakta # aap ne bataya waise me karta hu to #num esa errore aa raha haii # pls aap ek example deke ek calculation bata shakte ho ?

[Siyankpandey]

Mutual fund non guaranteed hai boss lic guaranteed hai..

[saswatimukherjeeinsurance]

Bhai insurance never calculate as a investment

[prateekverma]

bhai aapne bilkul dil ki baat keh di hai...

[DarshDalwadi]

Forget all this, invest in some really good stocks that gives 10-12% returns yearly plus dividends

[pramodpandey]

Take proper knowledge about term plan endowment plan and sip or share market

[choksiinsuinvestment]

DO YOU KNOW WHICH PLAN ARE YOU TAKING ABOUT AND FEATURE OF THIS

[sanjaydhebe]

Sir your formula is not working in excel file

[moumishra]

Bro next time show jeevan labh policy return of 25/16 term, then you will get 7.3-7.5 % return

[shoaib]

Term plan easy se nhi milta for every person sir