How this is worked out
Payments are made at the start of each year for the years you enter. After the gap, the yearly receipts begin, and the lump sum comes with the last receipt. The yearly return is the rate at which what you pay and what you get are equal in value. This is the working in Chapter 22 of The Banker’s Money Book.
Questions bankers ask
How do I find the return of an insurance or guaranteed plan?
Write every payment and every receipt with its year, and work out the internal rate of return (IRR). This calculator does it for the usual pattern: pay for some years, wait, then receive yearly amounts and a lump sum.
What is a good return?
Compare it with PPF, 7.1% tax-free for October to December 2026, and with a low-cost index fund for long-term money. A plan that pays less than PPF and locks you in is rarely worth it.
Does this tell me whether to buy?
No. It checks the figures you enter. Also check the lock-in, what you get if you stop early, who regulates the product, and whether your conduct rules allow it.
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Indicative figures for planning. They follow the 12th Bipartite Settlement and 9th Joint Note (8 March 2024), IBA’s DA circular of 2 November 2026 and the Income-tax Act, 2025, as on 12 November 2026. Your bank’s payslip, service regulations, circulars and Form 16 prevail. Bankers Pioneer Academy is independent; not affiliated with IBA, IIBF, the Reserve Bank of India or any bank. Nothing you type here leaves your device.