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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
Repayment Annual Amount
90000
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Annual Term Insurance Premium (Rs., for equivalent cover)
8,000
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Investment Term — Contributions (years)
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Repayment Term Start
11
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Total Horizon (years)
20
Repayment Term Ends
20
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Deposit Interest Rate Required to Match Plan (p.a.)
6.0%
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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)
500,000
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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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192,00005,5201,6563,86495,864
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292,00095,86411,2723,3827,890195,754
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392,000195,75417,2655,18012,086299,840
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492,000299,84023,5107,05316,457408,297
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592,000408,29730,0189,00521,012521,310
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692,000521,31036,79911,04025,759639,069
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792,000639,06943,86413,15930,705761,774
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892,000761,77451,22615,36835,858889,632
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992,000889,63258,89817,66941,2291,022,861
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1092,0001,022,86166,89220,06746,8241,161,685
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11-98,0001,161,68563,82119,14644,6751,108,360
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12-98,0001,108,36060,62218,18642,4351,052,795
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13-98,0001,052,79557,28817,18640,101994,896
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14-98,000994,89653,81416,14437,670934,566
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15-98,000934,56650,19415,05835,136871,701
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16-98,000871,70146,42213,92732,495806,197
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17-98,000806,19742,49212,74829,744737,941
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18-98,000737,94138,39611,51926,878666,819
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19-98,000666,81934,12910,23923,890592,709
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20-98,000592,70929,6838,90520,778515,487
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Total Investable Contributed
-60,000
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Total Tax Paid on Interest
246,637
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Deposit Route — Final Corpus at Year 20 (Rs.)
515,487
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Target — Total Guaranteed Payout from Assured Income Plan (Rs.)
500,000
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Difference (Deposit Route − Plan)
15,487
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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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