How to calculate Annual Percentage Returns or IRR of a Guaranteed Returns Plan
Life Insurance companies aggressively pitch Guaranteed, Tax Free Investment plans which seem lucrative due to the Guaranteed Amounts promised. However, are these really as lucrative as they seem when you consider the long-term time horizon for such plans? A simple 2-min exercise in MS Excel to calculate the Internal Rate of Return (IRR) can help you evaluate the suitability of such plans.
