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Plain Deposit + Term Insurance — Comparable Cash Flow Calculation
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Built to replicate the guaranteed outcomes of the Assured Income Plan illustration, on a like-for-like basis
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Key Assumptions (editable — blue cells)
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Annual Amount Available (Rs., Yr 1–10)
100,000
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Annual Term Insurance Premium (Rs., for equivalent cover)
8,000
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Investment Term — Contributions (years)
10
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Total Horizon (years)
20
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Deposit Interest Rate Required to Match Plan (p.a.)
3.9%
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Income Tax Bracket on Interest (Update-01: worst case)
30.0%
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Target Value to Match (Total Guaranteed Payout from Plan)
1,400,000
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Year
Investable Amount (Rs.)
Opening Balance (Rs.)
Gross Interest (Rs.)
Tax on Interest (Rs.)
Net Interest (Rs.)
Closing Balance (Rs.)
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192,00003,5881,0762,51294,512
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292,00094,5127,2742,1825,092191,603
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392,000191,60311,0613,3187,742291,346
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492,000291,34614,9504,48510,465393,811
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592,000393,81118,9475,68413,263499,074
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692,000499,07423,0526,91616,136607,210
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792,000607,21027,2698,18119,088718,298
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892,000718,29831,6029,48022,121832,420
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992,000832,42036,05210,81625,237949,656
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1092,000949,65640,62512,18728,4371,070,093
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1101,070,09341,73412,52029,2141,099,307
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1201,099,30742,87312,86230,0111,129,318
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1301,129,31844,04313,21330,8301,160,149
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1401,160,14945,24613,57431,6721,191,821
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1501,191,82146,48113,94432,5371,224,357
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1601,224,35747,75014,32533,4251,257,782
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1701,257,78249,05414,71634,3371,292,120
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1801,292,12050,39315,11835,2751,327,395
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1901,327,39551,76815,53136,2381,363,632
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2001,363,63253,18215,95437,2271,400,860
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Total Investable Contributed
920,000
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Total Tax Paid on Interest
206,083
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Deposit Route — Final Corpus at Year 20 (Rs.)
1,400,860
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Target — Total Guaranteed Payout from Assured Income Plan (Rs.)
1,400,000
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Difference (Deposit Route − Plan)
860
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Note: The Deposit Interest Rate cell above is the rate that, after (a) funding an equivalent term insurance cover and (b) paying tax on interest income, causes the deposit route's Year-20 corpus to converge on the total guaranteed payout of the Assured Income Plan illustration. Adjust the rate cell to re-solve for a different target. Update-01: the tax bracket assumption above has been raised to 30% (from an earlier 10%) to present the worst-case scenario for the deposit alternative. All figures are illustrative and for educational comparison only.
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