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Savings Insurance IRR Calculator

Sales brochures advertise a 'declared rate' of 2.5%, but the actual return you take home is almost always lower once front-end loads, surrender penalties, and cashflow timing are factored in. This tool unpacks the policy into year-by-year cashflows and solves the true annualized IRR.

Policy basics
Result
Annualized IRR
4.08%
Total premium
NT$600K
Total payout
NT$720K
Nominal gain
NT$120K

IRR accounts for the time value of money: a lower IRR means your capital was tied up with a lower effective return. Compare with current time-deposit rates or ETF long-term returns to judge the opportunity cost.

Payout form
Switch to ‘From advertised rate’ or use the advanced mode to see a surrender-IRR curve.

Why the declared rate overstates your return

  • Front-end load: 20–60% of the first-year premium is siphoned to commissions and fees before any money is invested
  • Surrender penalty: early surrender returns less than you've paid in
  • Cashflow timing: premiums go in early, payouts come out years later — same totals, lower IRR
  • Participating rate can move: declared rates are adjusted annually and aren't contractually guaranteed

Wondering if you should surrender and invest in ETFs instead? Head toSavings Insurance vs ETF.

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