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Children Endowment Calculator

Do the returns on my children's endowment policy beat inflation?
Let's say you bought an endowment policy in your 2-year old daughter's name. Your plan is that by the time she turns 18, you will have the sum needed for her college education. Fast forward sixteen years - you get your endowment policy payout, but find out that it is not close to what you need. Inflation has seen to that. In the intervening years, inflation has eaten away any gains that you might have posted. So how do you avoid this?

Welcome to our returns on children's endowment policy vs. inflation calculator!

     This calculator will give you the answer to whether the returns on your children's endowment policy returns beat inflation. You can then decide if children's endowment policies are the way to go or not.

The calculator begins by asking you to select the type of premium you want to pay - single, regular, or limited. That done, the next screen will ask you to fill in some critical data - your age, your sum assured, your mode of paying premiums (monthly, quarterly, semi-annually, annually), annual premium amount, and policy term.

     Children's endowment policies are typically issued only within an age bracket. This is also taken into account here. The age range defined here is 0-18. We arrived at this by taking the lowest and highest ages at which any insurer issues a children's endowment policy.

     Once you have done all that, the calculator does its stuff and gives out the result - a neat little bar chart. The bar on the right depicts the rate of return on your children's endowment policy and the one on the left depicts the inflation rate. So long as the bar on the right is green, your policy is beating inflation. The moment the bar on the right turns red, it means inflation will wipe out any returns from your children's endowment policy.

     A couple of sliders, one each for the inflation rate and the average yearly expected bonus, allows you to play around, change them, and see how these changes affect your returns when compared to inflation.

     You buy a children's endowment plan only to ensure that your child's future is secure. You might want to use this calculator to see if that is really the case.

Happy calculating!

Note: All calculators and comparators are made based on certain assumptions which may not be true in your case. You should consult your personal financial advisor before taking any decision. Apnaloan disclaims any responsibility for any decision taken based on these calculators and comparators.