How to calculate IRR for LIC policy?

To calculate IRR, list all yearly premiums as negative cashflows and all survival benefits/maturity as positive cashflows with their respective dates. Use the XIRR formula to find the annualized return.

Are endowment policies good for long term?

Traditional plans offer safety and tax benefits but often fail to beat inflation. Diversifying into a term plan for protection and SIPs for wealth usually yields 2-3x higher terminal wealth.

Should I surrender my LIC policy?

If the IRR is below 5% and you have many years left, surrendering and reinvesting in equity might be beneficial. However, check surrender charges and tax implications before deciding.

LIC Traditional Policy IRR Buster

Reveal the true annual returns (IRR) of endowment and money-back policies and compare with BTIR.

Quick Summary: LIC Traditional Policy IRR Buster

The Internal Rate of Return (IRR) of most traditional endowment or money-back policies in India typically ranges between 4% and 6%. This is often lower than inflation-adjusted returns from equity or PPF. Use our IRR Buster to calculate your policy's XIRR by entering premiums, survival benefits, and maturity value.

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Regulatory Disclaimer

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.