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    LIC Jeevan Pragati - Returns Calculation - Example: (2010: Policy Start Year)

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    Ravi b
    This document provides an example calculation of returns for a LIC Jeevan Pragati whole life insurance policy. It shows that for a 30-year old policyholder with a 20-year policy term and annual premium of Rs. 7,612, the internal rate of return is 7.05%. The policyholder pays premiums annually for 20 years and then receives a maturity benefit of Rs. 336,000 at the end of year 21, consisting of the basic sum assured of Rs. 150,000 plus bonuses and final additional bonuses.

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    LIC Jeevan Pragati - Returns Calculation - Example: (2010: Policy Start Year)

    Uploaded by

    Ravi b
    22 views2 pages
    This document provides an example calculation of returns for a LIC Jeevan Pragati whole life insurance policy. It shows that for a 30-year old policyholder with a 20-year policy term and annual premium of Rs. 7,612, the internal rate of return is 7.05%. The policyholder pays premiums annually for 20 years and then receives a maturity benefit of Rs. 336,000 at the end of year 21, consisting of the basic sum assured of Rs. 150,000 plus bonuses and final additional bonuses.

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    LIC Jeevan Pragati

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    This document provides an example calculation of returns for a LIC Jeevan Pragati whole life insurance policy. It shows that for a 30-year old policyholder with a 20-year policy term and annual premium of Rs. 7,612, the internal rate of return is 7.05%. The policyholder pays premiums annually for 20 years and then receives a maturity benefit of Rs. 336,000 at the end of year 21, consisting of the basic sum assured of Rs. 150,000 plus bonuses and final additional bonuses.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    22 views2 pages

    LIC Jeevan Pragati - Returns Calculation - Example: (2010: Policy Start Year)

    Uploaded by

    Ravi b
    This document provides an example calculation of returns for a LIC Jeevan Pragati whole life insurance policy. It shows that for a 30-year old policyholder with a 20-year policy term and annual premium of Rs. 7,612, the internal rate of return is 7.05%. The policyholder pays premiums annually for 20 years and then receives a maturity benefit of Rs. 336,000 at the end of year 21, consisting of the basic sum assured of Rs. 150,000 plus bonuses and final additional bonuses.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
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    LIC Jeevan Pragati - Returns Calculation - Example

    Age of the Policyholder 30 Years


    Policy Term 20 Years
    Premium Amount Rs 7,612
    Basic Sum Assured Rs 1,50,000

    Policy Year Cash Flows


    1 -7612
    (2010 : Policy Start Year)
    2 -7612
    3 -7612
    4 -7612
    5 -7612
    6 -7612
    7 -7612
    8 -7612
    9 -7612
    10 -7612
    11 -7612
    12 -7612
    13 -7612
    14 -7612
    15 -7612
    16 -7612
    17 -7612
    18 -7612
    19 -7612
    20 -7612
    (2030 : Premium Payment Ends)

    21 336000
    (Calender Year : 2031)

    Returns (IRR) 7.05%


    ti - Returns Calculation - Example

    Inclusive of service Tax. Indicative.

    Premium Payment

    Premium Payment
    Premium Payment
    Premium Payment
    Premium Payment
    Premium Payment
    Premium Payment
    Premium Payment
    Premium Payment
    Premium Payment
    Premium Payment
    Premium Payment
    Premium Payment
    Premium Payment
    Premium Payment
    Premium Payment
    Premium Payment
    Premium Payment
    Premium Payment

    Premium Payment

    Maturity Benefit : SA + Bonus+FAB


    150000 <- Sum Assured

    Assumptions : Bonus Rs 42 per Rs 1000 126000 <- SRB


    Sum Assured. FAB Rs 400 per Rs 1000 SA.
    FAB = Final Additional Bonus
    60000 <- FAB
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