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Insurance Policy IRR Calculator
Result
Chart
Show formula & working
Cash flows: − premium at the start of each premium-paying year; + each benefit at the end of its policy year
IRR = the rate at which their present value is zero
Details
How this works
A traditional policy mixes insurance and saving. The IRR shows what the saving part earns, which you can compare with other options.
Benefit illustrations show figures at assumed rates; only guaranteed amounts are certain.
Frequently asked questions
Why does doubling my money give a low IRR?
Because it takes many years. Doubling over 20 years is about 3.5% a year.
Does this include the life cover?
No. It measures the savings return; the cover has its own value.