LIC Policy Comparison Calculator
Compare two traditional insurance plans side-by-side, evaluating premiums, maturity payouts, and annualised cashflow yields.
Side-by-Side Comparison
| Metric Description | Plan A Results | Plan B Results | Variance Analysis |
|---|---|---|---|
| Sum Assured | ₹5,00,000 | ₹5,00,000 | Identical SA |
| Total Premium Contribution | ₹3,75,000 | ₹5,00,000 | ₹1,25,000 (B is costlier) |
| Accumulated Reversionary Bonus | ₹4,20,000 | ₹6,00,000 | ₹1,80,000 diff |
| Final Additional Bonus (FAB) | ₹75,000 | ₹2,75,000 | ₹2,00,000 diff |
| Total Payout at Maturity | ₹9,95,000 | ₹13,75,000 | ₹3,80,000 (Plan B Pays More) |
| Net Return (Profit) | ₹6,20,000 | ₹8,75,000 | ₹2,55,000 (Plan B Earns More) |
| Annualised Yield (IRR) | 7.98% | 7.58% | 0.40% yield variance |
Understanding Internal Rate of Return (IRR) Comparison:
Traditional endowment structures often exhibit lower early-term yields, which compound to higher yields for terms over 25 years due to escalations in the Final Additional Bonus (FAB). When comparing policies, look beyond absolute payout amounts; analyze the annualised yield (IRR) to understand how efficiently your money compounds over time.
Why Compare LIC Plans?
LIC offers plans with different terms and premium payment schedules. Comparing them side-by-side lets you identify the most efficient savings plan.
Yield Focus
Rather than checking absolute payouts, analyze the annualised yield (IRR) to understand how efficiently your money compounds over time.
Frequently Asked Questions (FAQ)
What metrics are evaluated in side-by-side policy comparisons?
The comparison tool audits premium payment terms, total cumulative premium outlays, accumulated bonuses, final additional bonuses, and annualised Internal Rate of Return (IRR).
How does premium paying term (PPT) affect the policy returns?
A shorter PPT relative to policy term (limited pay) allows the initial capital to compound for a longer period, typically yielding a higher overall IRR.
Related Financial Calculators
Explore other calculators to project policy returns, estimate maturity benefits, and optimize your personal tax shields.