Convert policy premiums and future cash flows into a comparable IRR
Policy IRR is useful when payments and benefits occur at different dates. A declared rate or one-year credited rate is not automatically the policy's overall return.
How to read the result
Run guaranteed and non-guaranteed benefits separately so the contractual floor is not mixed with illustrated bonuses.
Practical scenario: Compare surrender or maturity at different years to distinguish a break-even year from the longer-term cash-flow return.
What the estimate does not include
IRR does not measure the value of insurance protection, underwriting, or currency risk.
Treat the result as a range for further verification, then check the original contract, financial institution, or responsible authority before making a material financial decision.