How do I calculate real returns for insurance plans?

Compute IRR/XIRR of premiums and payouts net of charges, then convert to real using CPI: Real = [(1+IRR)/(1+Inflation)] − 1.

Do ULIP charges and mortality costs change real returns?

Yes. Deduct all charges and mortality costs from fund value before calculating IRR; then adjust for inflation.

Yes, real returns allow apples-to-apples comparison across ULIPs, endowment plans, FDs and mutual funds.

Account for tax savings or liabilities to compute post-tax IRR before adjusting for inflation.

Use actual surrender value and dates as cashflows; early exits usually reduce both nominal and real returns.

Annual Premium

Policy Term (Years)

Expected Return Rate (%)

Inflation Rate (%)

Charges & Fees (%)

Total Premiums

Maturity Value

Charges Deduction

Inflation Impact

Real Value

Real Profit

Real Return Rate

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