Savings Insurance IRR Calculator

When Hong Kong insurance companies promote endowment insurance or annuities, they often use \"total return of 500%\" or \"guaranteed plus non-guaranteed returns\" as selling points, but these figures can make it hard to judge a product's true return. Internal Rate of Return (IRR) is a more objective measure that discounts all cash outflows (premiums) and inflows (surrender value or annuity payments) by time value to produce an annualised compound return, making it easier to compare with fixed deposits, bonds or stocks.

Endowment insurance returns are usually split into \"guaranteed\" and \"non-guaranteed\" portions. Guaranteed returns are amounts the insurer promises to pay. Non-guaranteed returns depend on the dividend realisation rate and may be higher or lower than expected. Many policyholders look only at the projected total return in the brochure and overlook the uncertainty of the non-guaranteed portion, so the actual return may be far lower than expected.

HK FinBox 的儲蓄保險 IRR 計算機，讓你輸入每年保費、供款年期、預計退保或提取年份、保證退保價值及預計退保價值，自動計算保證 IRR 與預計 IRR。透過這兩個數字，你可以清楚看到產品的保證回報是否吸引，以及非保證部分佔比有多大。

If the guaranteed IRR is below 2%, most of the return depends on non-guaranteed dividends, which is riskier. If the projected IRR exceeds 4% to 5%, check whether the realisation rate assumptions are too optimistic. Before buying, ask the insurance adviser for the historical dividend realisation rate and compare the IRR with other lower-cost investment tools, rather than being misled by the headline \"total return multiple\".