Insurance Intelligence

Insurance Policy IRR Calculator

Find the real Internal Rate of Return on your endowment, money-back, or ULIP policy. Most traditional policies deliver 3-5% IRR — well below inflation.

Analyze My Policy
Calculates true IRR accounting for all premiums paid and maturity value
Flags policies with IRR below inflation as wealth-destroying
Checks life cover adequacy against the 10-15x annual income benchmark
Identifies hidden charges common in ULIP and traditional plans

How it's calculated

1
Enter your policy details
Input annual premium, policy term, and maturity/sum assured value from your policy document.
2
We calculate true IRR
Using the actual cash flow timeline of premiums paid and benefits received, we compute the effective annual return.
3
Compare against inflation and alternatives
See your policy IRR next to inflation and typical index fund/PPF returns for context.
4
Get a coverage gap check
We flag if your total life cover is below the recommended 10-15x annual income benchmark.

Benchmarks we use

10-15x
Recommended life cover multiple
Total life insurance cover should be 10 to 15 times your annual income, per standard financial planning norms.
₹5L+
Minimum family health cover
Recommended minimum family floater health insurance cover for adequate protection.
3-5%
Typical traditional policy IRR
Common return range for endowment and money-back policies — often below long-term inflation.

Frequently Asked Questions

What is a good IRR for an insurance policy?
For pure protection (term insurance), IRR isn't the relevant metric — it's about cover adequacy. For investment-linked policies (ULIP, endowment), an IRR above 8% is considered reasonable; below 6% is often a wealth-destroying product.
Should I surrender my low-IRR policy?
It depends on surrender charges, remaining lock-in, and your life cover needs. Fiiuno's full analysis weighs the surrender loss against continuing to pay into a low-return product.
Does employer health cover count as adequate insurance?
No. Employer group health cover typically ends when you leave the job. We recommend a personal family floater policy independent of employment.
Is this a substitute for consulting an insurance advisor?
No. This tool provides an educational IRR estimate. For policy decisions, consult a licensed insurance advisor or your insurer directly.

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