Endowment Policy Calculator
.endowment-calc-container {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 20px auto;
padding: 0;
border: 1px solid #e0e0e0;
border-radius: 8px;
background-color: #ffffff;
box-shadow: 0 4px 6px rgba(0,0,0,0.05);
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.calc-header {
background-color: #2c3e50;
color: #ffffff;
padding: 20px;
border-radius: 8px 8px 0 0;
text-align: center;
}
.calc-header h2 {
margin: 0;
font-size: 24px;
}
.calc-body {
padding: 30px;
display: flex;
flex-wrap: wrap;
gap: 30px;
}
.input-column {
flex: 1;
min-width: 300px;
}
.result-column {
flex: 1;
min-width: 300px;
background-color: #f8f9fa;
padding: 20px;
border-radius: 8px;
border: 1px solid #e9ecef;
}
.form-group {
margin-bottom: 20px;
}
.form-group label {
display: block;
margin-bottom: 8px;
font-weight: 600;
color: #333;
}
.form-group input {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box;
}
.form-group .input-suffix {
position: relative;
}
.form-group .input-suffix span {
position: absolute;
right: 15px;
top: 12px;
color: #666;
}
button.calc-btn {
width: 100%;
padding: 14px;
background-color: #27ae60;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background 0.3s;
}
button.calc-btn:hover {
background-color: #219150;
}
.result-row {
display: flex;
justify-content: space-between;
margin-bottom: 15px;
padding-bottom: 15px;
border-bottom: 1px solid #e0e0e0;
}
.result-row:last-child {
border-bottom: none;
}
.result-label {
color: #555;
font-size: 15px;
}
.result-value {
font-weight: bold;
color: #2c3e50;
font-size: 18px;
}
.final-result {
text-align: center;
margin-top: 10px;
background-color: #e8f5e9;
padding: 15px;
border-radius: 6px;
border: 1px solid #c8e6c9;
}
.final-label {
display: block;
color: #2e7d32;
font-weight: 600;
margin-bottom: 5px;
}
.final-amount {
display: block;
font-size: 28px;
color: #1b5e20;
font-weight: 800;
}
.article-content {
max-width: 800px;
margin: 40px auto;
line-height: 1.6;
color: #333;
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, sans-serif;
}
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color: #2c3e50;
margin-top: 30px;
border-bottom: 2px solid #eee;
padding-bottom: 10px;
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.article-content h3 {
color: #34495e;
margin-top: 25px;
}
.article-content ul {
margin-bottom: 20px;
}
.article-content li {
margin-bottom: 10px;
}
.info-box {
background-color: #e3f2fd;
border-left: 5px solid #2196f3;
padding: 15px;
margin: 20px 0;
}
@media (max-width: 600px) {
.calc-body {
flex-direction: column;
}
}
Total Premiums Paid:
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Investment Growth:
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Estimated Maturity Value
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*Calculation assumes premiums are paid at the beginning of each month and returns compound monthly.
function calculateEndowment() {
// Get Input Values
var monthlyPremium = parseFloat(document.getElementById("monthlyPremium").value);
var initialLumpSum = parseFloat(document.getElementById("initialLumpSum").value);
var policyTerm = parseFloat(document.getElementById("policyTerm").value);
var annualRate = parseFloat(document.getElementById("projectedReturn").value);
// Validation
if (isNaN(monthlyPremium)) monthlyPremium = 0;
if (isNaN(initialLumpSum)) initialLumpSum = 0;
if (isNaN(policyTerm) || policyTerm 0) {
futureValueLumpSum = initialLumpSum * Math.pow((1 + monthlyRate), months);
} else {
futureValueLumpSum = initialLumpSum;
}
// 2. Calculate Growth of Monthly Premiums (Annuity Due: payments at start of month)
// Formula: PMT * [((1+r)^n – 1) / r] * (1+r)
if (monthlyRate > 0) {
futureValuePremiums = monthlyPremium * ((Math.pow((1 + monthlyRate), months) – 1) / monthlyRate) * (1 + monthlyRate);
} else {
futureValuePremiums = monthlyPremium * months;
}
var totalMaturityValue = futureValueLumpSum + futureValuePremiums;
var totalInvested = initialLumpSum + (monthlyPremium * months);
var totalProfit = totalMaturityValue – totalInvested;
// Formatting Output
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2,
maximumFractionDigits: 2
});
document.getElementById("totalPremiums").innerHTML = formatter.format(totalInvested);
document.getElementById("maturityValue").innerHTML = formatter.format(totalMaturityValue);
// Handle negative growth (loss) visually or just show value
var growthElement = document.getElementById("totalGrowth");
growthElement.innerHTML = formatter.format(totalProfit);
if (totalProfit >= 0) {
growthElement.style.color = "#27ae60";
} else {
growthElement.style.color = "#c0392b";
}
}
Understanding Your Endowment Policy Projection
An endowment policy is a specialized life insurance contract designed to pay a lump sum after a specific term (on its maturity) or upon death. Unlike standard term insurance which offers no returns if you survive the term, an endowment plan acts as a disciplined savings tool, allowing you to build a corpus for significant life goals such as funding a child's education, buying a house, or securing your retirement.
Key Benefit: Endowment policies offer a dual benefit of life cover (Sum Assured) and wealth accumulation (Maturity Value). This calculator specifically focuses on the wealth accumulation aspect to help you project future returns.
How This Calculator Works
This Endowment Calculator estimates the future value of your policy based on your premium contributions and an estimated rate of return. It uses compound interest formulas adapted for monthly premium payments (Annuity Due logic). Here are the core components:
- Monthly Premium: The regular amount you contribute to the policy.
- Policy Term: The duration in years for which you will pay premiums and allow the investment to grow. Longer terms generally benefit more from compounding.
- Projected Return Rate: This is the most variable factor. Endowment policies often declare annual bonuses (Reversionary Bonuses). While historical rates for traditional endowments might range between 3% to 6%, unit-linked endowments (ULIPs) might offer higher returns based on market performance.
Interpreting the Results
When you calculate the values, you will see three distinct metrics:
- Estimated Maturity Value: This is the total lump sum you are projected to receive at the end of the term. It includes your original contributions plus the accumulated interest or bonuses.
- Total Premiums Paid: The actual cash amount you have paid out of pocket over the years.
- Investment Growth: The profit generated by the policy. This represents the power of compounding working on your premiums.
Factors Affecting Actual Endowment Returns
While this calculator provides a mathematical projection, actual returns on endowment policies depend on several factors:
- Company Performance: For "With-Profits" policies, bonuses are declared based on the insurance company's surplus profits. These are not guaranteed.
- Surrender Value: If you exit the policy before the full term, you may receive a Surrender Value, which is often significantly lower than the projected maturity value.
- Fees and Charges: Insurance policies have mortality charges, administration fees, and fund management charges which are deducted from your premium before it is invested. This calculator assumes the net invested amount grows at the specified rate.
Common Use Cases for Endowment Plans
Endowment plans are ideal for individuals who are risk-averse and prefer a forced savings mechanism. They are frequently used for:
- Education Planning: Maturing the policy right when university tuition is due.
- Mortgage Repayment: Interest-only mortgage holders often use endowment policies to pay off the principal debt at the end of the mortgage term.
- Retirement Corpus: Providing a tax-efficient lump sum to supplement pension income.