LIC XIRR Calculator
Find out the real annualized return (XIRR) on your LIC or insurance policy. Enter your premiums and maturity value — or use advanced mode for survival benefits and money-back plans.
⚡ Quick
Annual premium + maturity amount
📋 Advanced
Full cashflow table with dates
⚖️ Surrender
Continue vs surrender analysis
Quick fill — common LIC plans
Policy Details
Maturity date is automatically calculated as Start Date + Premium Term years.
Your XIRR
3.72%
Your policy return is below inflation. You are losing real wealth.
Total Premiums
₹10 L
paid
Total Benefits
₹15 L
received
Net Profit
₹5 L
gain
Absolute Return
50.0%
total
How your return compares
| Investment | Return | Difference |
|---|---|---|
| Your LIC Policy | 3.72% | — |
| PPF | 7.10% | -3.38pp |
| EPF | 8.25% | -4.53pp |
| FD | 6.50% | -2.78pp |
| NPS | 10.00% | -6.28pp |
| Nifty 50 | 12.00% | -8.28pp |
📊 What this means
Your policy returned 3.72% annually — below inflation. In real terms, your money has lost purchasing power over the policy term.
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How XIRR Is Calculated
XIRR solves for the single annual rate r that satisfies:
This calculator uses the Newton-Raphson iterative method with up to 1,000 iterations and convergence to 8 decimal places. Premiums are negative cashflows (money leaving your pocket); maturity amounts, survival benefits, and bonuses are positive cashflows.
| XIRR Band | Rating | Interpretation |
|---|---|---|
| Below 4% | Very Poor | Worse than a savings account in real terms |
| 4% – 6% | Poor | Below PPF and EPF; losing real purchasing power |
| 6% – 8% | Average | Roughly in line with PPF; barely beats inflation |
| 8% – 10% | Good | Competitive for a guaranteed insurance product |
| 10% – 12% | Very Good | Excellent for an insurance plan; verify inputs |
| Above 12% | Excellent | Exceptional — double-check all cashflow entries |
Frequently Asked Questions
What is XIRR and why use it for LIC policies?
XIRR (Extended Internal Rate of Return) is the true annualized return when cashflows happen on specific dates — as they do with insurance premiums (paid annually on a fixed date) and maturity/survival benefits (received at different points). Unlike CAGR, which works only for a single lump sum invested and redeemed, XIRR handles irregular cashflows correctly. For LIC policies where you pay premiums for 20 years and receive money back at various points, XIRR is the only accurate return measure.
How is XIRR different from CAGR?
CAGR (Compound Annual Growth Rate) assumes you invest once and withdraw once. It cannot handle multiple investments or receipts at different dates. XIRR solves for the single interest rate that makes the present value of all inflows equal the present value of all outflows — correctly accounting for the timing of each cashflow. A 20-year LIC policy has 20+ cashflows; CAGR would give a misleading number.
Is LIC a good investment based on typical XIRR?
Most traditional LIC endowment and money-back plans deliver an XIRR of 4–6% — below PPF (7.1%), EPF (8.25%), and significantly below equity mutual funds (12%+ long term). However, LIC provides life cover alongside the return, so the comparison isn't entirely fair. If you already have adequate term insurance, the investment component of a traditional LIC plan is generally considered inefficient. ULIPs and LIC's market-linked plans can deliver higher returns but carry market risk.
How do I calculate LIC policy returns accurately?
Use the Advanced Cashflow mode in this calculator. Enter every premium as a negative cashflow on the date it was paid. Enter every benefit — survival benefits, bonuses, money-back amounts, and the final maturity amount — as positive cashflows on the dates they are or will be received. The calculator uses the Newton-Raphson XIRR algorithm to compute your annualized return.
What is a good XIRR for an insurance policy?
Below 4% is very poor (worse than a savings account in real terms). 4–6% is poor (below PPF). 6–8% is average (roughly in line with PPF/EPF). 8–10% is good for an insurance product. Above 10% is excellent and unusual for guaranteed insurance — double-check your inputs if you see this. Remember that pure term insurance + equity mutual funds typically outperforms a bundled endowment plan on both protection and returns.
Can LIC returns beat inflation?
India's long-run CPI inflation averages 5–6% annually. Traditional LIC policies returning 4–6% XIRR barely keep pace with inflation or may lose real value. ULIPs invested in equity funds have a better chance of beating inflation over 15–20 years, but carry market risk. PPF at 7.1% (tax-free) consistently beats inflation in real terms.
Should I surrender my LIC policy?
Use the 'Continue vs Surrender' mode in this calculator to compare scenarios. Key factors: how many years remain (surrendering early locks in the worst surrender penalty), whether you have adequate term insurance cover elsewhere, what return you can realistically earn from alternatives, and the tax implications of the surrender value. As a thumb rule, if more than 2/3 of the premium-paying term remains and your XIRR is below 5%, surrendering and reinvesting is often mathematically better — but get advice from a fee-only financial planner.
Does this calculator work for all insurance companies?
Yes. The calculator is insurance-company agnostic. It works for LIC, HDFC Life, ICICI Prudential, SBI Life, Max Life, Bajaj Allianz, or any other insurer. Enter your actual premiums, dates, and benefits — the XIRR calculation is purely mathematical.