Endowment and money-back policy maturity calculator with bonus and IRR
This policy maturity calculator works out what a traditional endowment or money-back life insurance policy pays at maturity: the basic sum assured, plus the simple reversionary bonus declared per ₹1,000 of sum assured each year, plus any final additional bonus. It then shows the policy’s real yearly return (IRR) and what the same premiums would have grown to in a bank fixed deposit.
Enter the figures from your policy bond and the bonus rates from your insurer’s latest bonus declaration. Nothing is preset to any insurer or plan, and nothing you type leaves your browser. Bonus rates change every year and are not guaranteed, so treat the answer as an estimate — not insurance or investment advice.
How to use the Endowment & Money-Back Policy Maturity Calculator
- Choose Endowment or Money-back.
- Enter the basic sum assured, the yearly premium, the policy term and the premium paying term.
- Enter the reversionary bonus rate per ₹1,000 sum assured a year and any final additional bonus per ₹1,000 — both from your insurer’s bonus declaration.
- For money-back plans, list the instalments as year:percent (for example 5:15, 10:15, 15:15).
- Set the FD rate to compare with (and your tax rate on FD interest), then read the maturity amount, the IRR and the year-by-year table.
Endowment & Money-Back Policy Maturity Calculator features
Bonus per ₹1,000
Reversionary bonus × sum assured ÷ 1,000 × years, plus a final additional bonus.
Money-back plans
Any schedule of survival benefits; the rest of the sum assured comes at maturity.
True return (IRR)
The yearly rate that equates every premium with every payout — the fair way to compare.
FD comparison
The same premiums deposited (and the same money-back amounts withdrawn) in an FD with quarterly compounding, before or after tax.
No insurer data
You enter the declared rates, so the estimate matches your own policy.
How policy maturity value is calculated
Maturity = basic sum assured + (reversionary bonus per ₹1,000 × sum assured ÷ 1,000 × policy years) + final additional bonus per ₹1,000 × sum assured ÷ 1,000. In a money-back plan the instalments already paid are taken off the sum assured due at maturity, while bonuses usually keep accruing on the full sum assured — check your policy wording.
Worked example: sum assured ₹5,00,000, 21-year term, ₹24,000 premium a year, and an example bonus of ₹40 per ₹1,000 a year. Bonus = 40 × 500 × 21 = ₹4,20,000, so the maturity value is ₹9,20,000 on ₹5,04,000 of premiums. That looks like 82% growth, but spread over 21 years the IRR is about 5.2% a year; an FD at 7% compounded quarterly would have grown the same premiums to about ₹11.8 lakh before tax.
Why IRR matters for insurance returns
- Premiums are paid over many years, so “total received ÷ total paid” overstates the return. The IRR accounts for when each rupee is paid and received.
- Money-back instalments come back early, which raises the IRR a little compared with a plain endowment with the same total.
- A traditional plan also pays a death benefit, so part of each premium buys cover. To judge the investment part, compare with a term plan plus an FD, PPF or mutual fund — the life insurance calculator helps size the cover.
- Since 22 September 2025 premiums on individual life insurance policies are exempt from GST (56th GST Council; PIB FAQ), so no GST is added to the premium.
- Maturity proceeds can be tax-free only if the policy meets the Income-tax Act conditions, which include limits on premiums; check the current rules or ask the insurer. FD interest is taxed at your slab rate.
Reading your bonus declaration
Insurers publish their bonus rates after each financial year, usually per ₹1,000 sum assured, by plan and often by term. Simple reversionary bonuses, once added, are guaranteed to be paid at maturity or death; future bonuses are not. A final additional bonus, where declared, is paid only on maturity or death after a minimum term; some plans use a similar terminal bonus or loyalty addition instead. Enter an average of recent rates for a planning figure, and try a lower rate to see the downside. For market-linked plans use the ULIP calculator; for a guaranteed bank option the FD calculator.
Endowment & Money-Back Policy Maturity Calculator FAQ
How do I calculate the maturity amount of my policy?
Add the basic sum assured, the reversionary bonuses (rate per ₹1,000 × sum assured ÷ 1,000 × years) and any final additional bonus, then subtract money-back instalments already paid. This policy maturity calculator does it for you.
What is bonus per 1,000 sum assured?
It is how insurers declare bonus: ₹40 per ₹1,000 means ₹40 is added for every ₹1,000 of sum assured for that year — ₹20,000 a year on a ₹5 lakh policy.
Are bonus rates guaranteed?
No. Each year’s rate is declared after that year; once a reversionary bonus is added it stays, but future rates can be higher or lower.
What is a good IRR for an endowment policy?
Traditional plans typically return in the low-to-mid single digits a year. Compare the IRR with an FD, PPF or a term-plus-investment approach of similar risk.
Can I use this as an IRR calculator for insurance?
Yes. Enter the premium, term and benefits; the IRR is the yearly return that makes everything you pay equal to everything you get back.
Does the calculator include the death benefit?
No — it assumes the policy runs to maturity. Death benefits, surrender values, loans and riders are not modelled.