'100% guaranteed returns!' sounds perfect — until you calculate what's actually guaranteed. Here's the real math behind these popular plans.
Send your policy bond on WhatsApp; we'll compute the true IRR in plain numbers.
📅 Book a Free Call 💬 WhatsApp UsGuaranteed-return plans (endowment variants, guaranteed income plans) promise fixed payouts. What they don't advertise:
| Option | Typical return | Liquidity |
|---|---|---|
| Guaranteed plan | 4.5–6% IRR | Locked 10–25 yrs |
| PPF | ~7.1% tax-free | Partial from year 7 |
| 5-yr bank FD | ~7–7.5% (taxable) | Breakable anytime |
| Debt mutual funds | ~7–8% (taxed) | High |
For pure safety, PPF/FD usually beats guaranteed plans on returns and flexibility. The insurance cover bundled in is tiny — a term plan covers protection separately, far cheaper.
Outside these cases, 'guaranteed' is usually an expensive way to buy peace of mind.
Typically 4.5–6% IRR. The 'guarantee' means certainty of payout, not high returns — and illustrated bonuses are not guaranteed.
Rarely. A 5-year FD at ~7–7.5% usually beats them on returns and liquidity. PPF at ~7.1% tax-free beats them on both returns and tax.
Usually not as the core — the returns won't beat education inflation (~10%). Use PPF/SSY for the safe base and equity SIPs for growth; add term cover for protection.
You can surrender, but early exits (especially in the first 5 years) return far less than premiums paid. Check your surrender value table before deciding.
From our YouTube channel Bima Gyan by ViRa — simple Hindi/Hinglish explainers.
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