AssuredIncomePlan.xlsx

	A	B	C	D	E
1	Assured Annual Income Plan — Cash Flow Calculation (as per issuer illustration)
2	Source: http://insurance.kotak.com/individual/savings-invest/assured-income-plan.php (issuer illustration, publicly available)
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4	Key Assumptions (editable — blue cells)
5	Annual Premium (Rs.)	100,000
6	Premium Paying Term (years)	10
7	Total Policy Term (years)	20
8	Guaranteed Annual Income (Rs., paid Yr 11–20)	90,000
9	Guaranteed Terminal Payout at Yr 20 (Rs.)	500,000
10	Advisor-Quoted 'Assured Return'	9.1%
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12	Year	Premium Paid (Rs.)	Guaranteed Income Received (Rs.)	Terminal Payout (Rs.)	Net Cash Flow (Rs.)
13	1	-100,000	0	0	-100,000
14	2	-100,000	0	0	-100,000
15	3	-100,000	0	0	-100,000
16	4	-100,000	0	0	-100,000
17	5	-100,000	0	0	-100,000
18	6	-100,000	0	0	-100,000
19	7	-100,000	0	0	-100,000
20	8	-100,000	0	0	-100,000
21	9	-100,000	0	0	-100,000
22	10	-100,000	0	0	-100,000
23	11	0	90,000	0	90,000
24	12	0	90,000	0	90,000
25	13	0	90,000	0	90,000
26	14	0	90,000	0	90,000
27	15	0	90,000	0	90,000
28	16	0	90,000	0	90,000
29	17	0	90,000	0	90,000
30	18	0	90,000	0	90,000
31	19	0	90,000	0	90,000
32	20	0	90,000	500,000	590,000
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34	Total	-1,000,000	900,000	500,000	400,000
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36	Computed Effective Annual Return (IRR on Net Cash Flow)	2.9%
37	Advisor-Quoted 'Assured Return'	9.1%
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39	Note: The 9.1% figure quoted by the advisor is derived from the plan's own headline methodology (commonly, return on the income phase alone). The IRR computed above uses the full cash flow — premiums paid Yr 1–10, guaranteed income Yr 11–20, and terminal payout at Yr 20 — which is the economically correct measure of return on capital invested. All figures are illustrative, based on the issuer's publicly available product illustration.
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