Insurance policy IRR
Calculate the internal rate of return of a life insurance policy, year by year, from an editable table.
Prepared by Groupe Conseil Sabin Painchaud
Prepared on September 21, 2026
Internal rate of return (IRR) — life insurance policy
Parameters
Tip: select and copy a range of cells in Excel (Premium, Surrender value, Death benefit, in that order), click the first cell to fill in the table below, then paste (Ctrl+V) to fill several rows at once.
| Age | Probability of reaching this age | Annual premium ($) | Cash surrender value ($) | Death benefit ($) | IRR — death benefit (%) | Gross-equivalent IRR — death benefit (%) | IRR — surrender value (%) | Gross-equivalent IRR — surrender value (%) |
|---|---|---|---|---|---|---|---|---|
| 40 | 100.0 % | 3900.00 % | 8352.97 % | — | — | |||
| 41 | 99.9 % | 484.43 % | 1037.54 % | — | — | |||
| 42 | 99.8 % | 202.92 % | 434.60 % | — | — | |||
| 43 | 99.8 % | 118.20 % | 253.16 % | — | — | |||
| 44 | 99.7 % | 79.70 % | 170.71 % | — | — | |||
| 45 | 99.6 % | 58.29 % | 124.85 % | — | — | |||
| 46 | 99.4 % | 44.86 % | 96.09 % | — | — | |||
| 47 | 99.3 % | 35.75 % | 76.58 % | — | — | |||
| 48 | 99.1 % | 29.22 % | 62.58 % | — | — | |||
| 49 | 99.0 % | 24.33 % | 52.12 % | — | — | |||
| 50 | 98.8 % | 20.56 % | 44.04 % | — | — | |||
| 51 | 98.6 % | 17.58 % | 37.64 % | — | — | |||
| 52 | 98.3 % | 15.16 % | 32.47 % | — | — | |||
| 53 | 98.1 % | 13.18 % | 28.22 % | — | — | |||
| 54 | 97.8 % | 11.52 % | 24.67 % | — | — | |||
| 55 | 97.5 % | 10.12 % | 21.68 % | — | — | |||
| 56 | 97.1 % | 8.93 % | 19.12 % | — | — | |||
| 57 | 96.7 % | 7.90 % | 16.91 % | — | — | |||
| 58 | 96.3 % | 7.00 % | 14.99 % | — | — | |||
| 59 | 95.8 % | 6.22 % | 13.32 % | — | — | |||
| 60 | 95.3 % | 5.53 % | 11.84 % | — | — | |||
| 61 | 94.7 % | 4.92 % | 10.53 % | — | — | |||
| 62 | 94.0 % | 4.37 % | 9.36 % | — | — | |||
| 63 | 93.3 % | 3.88 % | 8.32 % | — | — | |||
| 64 | 92.5 % | 3.45 % | 7.38 % | — | — | |||
| 65 | 91.6 % | 3.05 % | 6.53 % | — | — | |||
| 66 | 90.6 % | 2.69 % | 5.76 % | — | — | |||
| 67 | 89.5 % | 2.36 % | 5.07 % | — | — | |||
| 68 | 88.3 % | 2.07 % | 4.43 % | — | — | |||
| 69 | 87.0 % | 1.80 % | 3.85 % | — | — | |||
| 70 | 85.5 % | 1.55 % | 3.31 % | — | — | |||
| 71 | 83.9 % | 1.32 % | 2.82 % | — | — | |||
| 72 | 82.2 % | 1.11 % | 2.37 % | — | — | |||
| 73 | 80.3 % | 0.91 % | 1.95 % | — | — | |||
| 74 | 78.3 % | 0.73 % | 1.56 % | — | — | |||
| 75 | 76.0 % | 0.56 % | 1.20 % | — | — | |||
| 76 | 73.6 % | 0.41 % | 0.87 % | — | — | |||
| 77 | 71.0 % | 0.26 % | 0.56 % | — | — | |||
| 78 | 68.2 % | 0.13 % | 0.27 % | — | — | |||
| 79 | 65.2 % | -0.00 % | -0.00 % | — | — | |||
| 80 | 62.0 % | -0.12 % | -0.25 % | — | — | |||
| 81 | 58.6 % | -0.23 % | -0.49 % | — | — | |||
| 82 | 55.0 % | -0.33 % | -0.71 % | — | — | |||
| 83 | 51.2 % | -0.43 % | -0.92 % | — | — | |||
| 84 | 47.3 % | -0.52 % | -1.12 % | — | — | |||
| 85 | 43.3 % | -0.61 % | -1.30 % | — | — | |||
| 86 | 39.3 % | -0.69 % | -1.47 % | — | — | |||
| 87 | 35.1 % | -0.76 % | -1.64 % | — | — | |||
| 88 | 31.0 % | -0.84 % | -1.79 % | — | — | |||
| 89 | 27.0 % | -0.90 % | -1.94 % | — | — | |||
| 90 | 23.0 % | -0.97 % | -2.08 % | — | — | |||
| 91 | 19.3 % | -1.03 % | -2.21 % | — | — | |||
| 92 | 15.8 % | -1.09 % | -2.33 % | — | — | |||
| 93 | 12.6 % | -1.14 % | -2.45 % | — | — | |||
| 94 | 9.8 % | -1.19 % | -2.56 % | — | — | |||
| 95 | 7.4 % | -1.24 % | -2.67 % | — | — | |||
| 96 | 5.3 % | -1.29 % | -2.77 % | — | — | |||
| 97 | 3.7 % | -1.34 % | -2.86 % | — | — | |||
| 98 | 2.4 % | -1.38 % | -2.95 % | — | — | |||
| 99 | 1.5 % | -1.42 % | -3.04 % | — | — | |||
| 100 | 0.8 % | -1.46 % | -3.12 % | — | — |
“This calculator estimates, for informational purposes only, the internal rate of return (IRR) of a life insurance policy based on the premiums, surrender values and benefits you enter. For a given year, the IRR is the rate that equates the present value of premiums paid up to that year with the value obtained at the end of that same year (death benefit or surrender value). The gross-equivalent IRR is the pre-tax return that a fully taxable interest-bearing investment, taxed at the top combined marginal rate for a Quebec resident (2026), would need to generate to produce the same net result as the insurance policy (whose death benefit, and generally surrender value, are tax-free). Data should be taken from an official insurer illustration or statement; values entered here may differ from the actual contract values. The probability of reaching each age is estimated from the Canadian Institute of Actuaries’ CPM2014 mortality table (Canadian pensioners), which does not distinguish smokers from non-smokers. This result does not constitute financial, actuarial or tax advice, nor a guarantee of return.”
| Age | Probability of reaching this age | Annual premium ($) | Cash surrender value ($) | Death benefit ($) | IRR — death benefit (%) | Gross-equivalent IRR — death benefit (%) | IRR — surrender value (%) | Gross-equivalent IRR — surrender value (%) |
|---|---|---|---|---|---|---|---|---|
| 40 | 100.0 % | 2 500 $ | 0 $ | 100 000 $ | 3900.00 % | 8352.97 % | — | — |
| 41 | 99.9 % | 2 500 $ | 0 $ | 100 000 $ | 484.43 % | 1037.54 % | — | — |
| 42 | 99.8 % | 2 500 $ | 0 $ | 100 000 $ | 202.92 % | 434.60 % | — | — |
| 43 | 99.8 % | 2 500 $ | 0 $ | 100 000 $ | 118.20 % | 253.16 % | — | — |
| 44 | 99.7 % | 2 500 $ | 0 $ | 100 000 $ | 79.70 % | 170.71 % | — | — |
| 45 | 99.6 % | 2 500 $ | 0 $ | 100 000 $ | 58.29 % | 124.85 % | — | — |
| 46 | 99.4 % | 2 500 $ | 0 $ | 100 000 $ | 44.86 % | 96.09 % | — | — |
| 47 | 99.3 % | 2 500 $ | 0 $ | 100 000 $ | 35.75 % | 76.58 % | — | — |
| 48 | 99.1 % | 2 500 $ | 0 $ | 100 000 $ | 29.22 % | 62.58 % | — | — |
| 49 | 99.0 % | 2 500 $ | 0 $ | 100 000 $ | 24.33 % | 52.12 % | — | — |
| 50 | 98.8 % | 2 500 $ | 0 $ | 100 000 $ | 20.56 % | 44.04 % | — | — |
| 51 | 98.6 % | 2 500 $ | 0 $ | 100 000 $ | 17.58 % | 37.64 % | — | — |
| 52 | 98.3 % | 2 500 $ | 0 $ | 100 000 $ | 15.16 % | 32.47 % | — | — |
| 53 | 98.1 % | 2 500 $ | 0 $ | 100 000 $ | 13.18 % | 28.22 % | — | — |
| 54 | 97.8 % | 2 500 $ | 0 $ | 100 000 $ | 11.52 % | 24.67 % | — | — |
| 55 | 97.5 % | 2 500 $ | 0 $ | 100 000 $ | 10.12 % | 21.68 % | — | — |
| 56 | 97.1 % | 2 500 $ | 0 $ | 100 000 $ | 8.93 % | 19.12 % | — | — |
| 57 | 96.7 % | 2 500 $ | 0 $ | 100 000 $ | 7.90 % | 16.91 % | — | — |
| 58 | 96.3 % | 2 500 $ | 0 $ | 100 000 $ | 7.00 % | 14.99 % | — | — |
| 59 | 95.8 % | 2 500 $ | 0 $ | 100 000 $ | 6.22 % | 13.32 % | — | — |
| 60 | 95.3 % | 2 500 $ | 0 $ | 100 000 $ | 5.53 % | 11.84 % | — | — |
| 61 | 94.7 % | 2 500 $ | 0 $ | 100 000 $ | 4.92 % | 10.53 % | — | — |
| 62 | 94.0 % | 2 500 $ | 0 $ | 100 000 $ | 4.37 % | 9.36 % | — | — |
| 63 | 93.3 % | 2 500 $ | 0 $ | 100 000 $ | 3.88 % | 8.32 % | — | — |
| 64 | 92.5 % | 2 500 $ | 0 $ | 100 000 $ | 3.45 % | 7.38 % | — | — |
| 65 | 91.6 % | 2 500 $ | 0 $ | 100 000 $ | 3.05 % | 6.53 % | — | — |
| 66 | 90.6 % | 2 500 $ | 0 $ | 100 000 $ | 2.69 % | 5.76 % | — | — |
| 67 | 89.5 % | 2 500 $ | 0 $ | 100 000 $ | 2.36 % | 5.07 % | — | — |
| 68 | 88.3 % | 2 500 $ | 0 $ | 100 000 $ | 2.07 % | 4.43 % | — | — |
| 69 | 87.0 % | 2 500 $ | 0 $ | 100 000 $ | 1.80 % | 3.85 % | — | — |
| 70 | 85.5 % | 2 500 $ | 0 $ | 100 000 $ | 1.55 % | 3.31 % | — | — |
| 71 | 83.9 % | 2 500 $ | 0 $ | 100 000 $ | 1.32 % | 2.82 % | — | — |
| 72 | 82.2 % | 2 500 $ | 0 $ | 100 000 $ | 1.11 % | 2.37 % | — | — |
| 73 | 80.3 % | 2 500 $ | 0 $ | 100 000 $ | 0.91 % | 1.95 % | — | — |
| 74 | 78.3 % | 2 500 $ | 0 $ | 100 000 $ | 0.73 % | 1.56 % | — | — |
| 75 | 76.0 % | 2 500 $ | 0 $ | 100 000 $ | 0.56 % | 1.20 % | — | — |
| 76 | 73.6 % | 2 500 $ | 0 $ | 100 000 $ | 0.41 % | 0.87 % | — | — |
| 77 | 71.0 % | 2 500 $ | 0 $ | 100 000 $ | 0.26 % | 0.56 % | — | — |
| 78 | 68.2 % | 2 500 $ | 0 $ | 100 000 $ | 0.13 % | 0.27 % | — | — |
| 79 | 65.2 % | 2 500 $ | 0 $ | 100 000 $ | -0.00 % | -0.00 % | — | — |
| 80 | 62.0 % | 2 500 $ | 0 $ | 100 000 $ | -0.12 % | -0.25 % | — | — |
| 81 | 58.6 % | 2 500 $ | 0 $ | 100 000 $ | -0.23 % | -0.49 % | — | — |
| 82 | 55.0 % | 2 500 $ | 0 $ | 100 000 $ | -0.33 % | -0.71 % | — | — |
| 83 | 51.2 % | 2 500 $ | 0 $ | 100 000 $ | -0.43 % | -0.92 % | — | — |
| 84 | 47.3 % | 2 500 $ | 0 $ | 100 000 $ | -0.52 % | -1.12 % | — | — |
| 85 | 43.3 % | 2 500 $ | 0 $ | 100 000 $ | -0.61 % | -1.30 % | — | — |
| 86 | 39.3 % | 2 500 $ | 0 $ | 100 000 $ | -0.69 % | -1.47 % | — | — |
| 87 | 35.1 % | 2 500 $ | 0 $ | 100 000 $ | -0.76 % | -1.64 % | — | — |
| 88 | 31.0 % | 2 500 $ | 0 $ | 100 000 $ | -0.84 % | -1.79 % | — | — |
| 89 | 27.0 % | 2 500 $ | 0 $ | 100 000 $ | -0.90 % | -1.94 % | — | — |
| 90 | 23.0 % | 2 500 $ | 0 $ | 100 000 $ | -0.97 % | -2.08 % | — | — |
| 91 | 19.3 % | 2 500 $ | 0 $ | 100 000 $ | -1.03 % | -2.21 % | — | — |
| 92 | 15.8 % | 2 500 $ | 0 $ | 100 000 $ | -1.09 % | -2.33 % | — | — |
| 93 | 12.6 % | 2 500 $ | 0 $ | 100 000 $ | -1.14 % | -2.45 % | — | — |
| 94 | 9.8 % | 2 500 $ | 0 $ | 100 000 $ | -1.19 % | -2.56 % | — | — |
| 95 | 7.4 % | 2 500 $ | 0 $ | 100 000 $ | -1.24 % | -2.67 % | — | — |
| 96 | 5.3 % | 2 500 $ | 0 $ | 100 000 $ | -1.29 % | -2.77 % | — | — |
| 97 | 3.7 % | 2 500 $ | 0 $ | 100 000 $ | -1.34 % | -2.86 % | — | — |
| 98 | 2.4 % | 2 500 $ | 0 $ | 100 000 $ | -1.38 % | -2.95 % | — | — |
| 99 | 1.5 % | 2 500 $ | 0 $ | 100 000 $ | -1.42 % | -3.04 % | — | — |
| 100 | 0.8 % | 2 500 $ | 0 $ | 100 000 $ | -1.46 % | -3.12 % | — | — |
“This calculator estimates, for informational purposes only, the internal rate of return (IRR) of a life insurance policy based on the premiums, surrender values and benefits you enter. For a given year, the IRR is the rate that equates the present value of premiums paid up to that year with the value obtained at the end of that same year (death benefit or surrender value). The gross-equivalent IRR is the pre-tax return that a fully taxable interest-bearing investment, taxed at the top combined marginal rate for a Quebec resident (2026), would need to generate to produce the same net result as the insurance policy (whose death benefit, and generally surrender value, are tax-free). Data should be taken from an official insurer illustration or statement; values entered here may differ from the actual contract values. The probability of reaching each age is estimated from the Canadian Institute of Actuaries’ CPM2014 mortality table (Canadian pensioners), which does not distinguish smokers from non-smokers. This result does not constitute financial, actuarial or tax advice, nor a guarantee of return.”
Calculation assumptions
- The projection extends to age 100, consistent with standard insurer illustrations.
- Premiums are assumed paid at the start of each year; surrender values and the death benefit are those at the end of the year.
- The IRR for a given year is the rate that equates the present value of premiums paid up to that year with the value obtained at the end of that same year.
- Gross-equivalent IRR = net IRR ÷ (1 − 53.31%), i.e. the pre-tax return a fully taxable interest-bearing investment would need to generate to match the same after-tax result, at the top combined marginal rate on interest income for a Quebec resident (2026).
- Premium, surrender and death benefit values are those entered by the user or their advisor, generally taken from an official insurer illustration.
- The survival probability uses the Canadian Institute of Actuaries’ CPM2014 mortality table (Canadian pensioners), adjusted by log-linear (Gompertz) regression; it does not distinguish smokers from non-smokers.
- No tax, additional fees, or future change in dividend/participation scale is taken into account beyond the values entered.
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