How do I evaluate investment policy options rolled out by different companies

Question

I am a techie who has started to learn about investments very recently. A friend of mine who is an agent that sells investment policies has been suggesting different policies for me to purchase. At first sight, these policies seem very attractive. For example:
Paying 100K INR every year for 10 years and then receiving double the amount (i.e. 200K) every year for 10 years after that.
However, I did some calculations to determine what 100K is worth now and what it'll be worth in 10 years and I found that the policy isn't much of a gain.
Another option for investment has the following terms:
Pay 100K INR every year for 10 years and then start receiving 35K immediately every year, for life.
I am not sure how to start evaluating these options and terms, and how to position myself to better make these investment decisions. What should I read to be able to make these decisions?

Dheer · Answer

Before I answer, Insurance agents are never friends. Ask for policy wording and check for the same on website. Quite often the example shown are indicative but are sold as guaranteed returns.
Assuming the numbers are true, the best way to calculate is find the  returns and compare a similar returns from Banks. I.e. both offer similar low risk.
In the first, if you look at it You are investing 100K for 10 years and getting 200K after 10 years. Around 7.1% rate of interest  Quite good compared to Bank FD rates of Around 5%.
If you take the second example the 100K per year would grow to around 1400k at the end of 10 years, every year on this corpus you are getting 35K around 2% ... this looks quite low.

How do I evaluate investment policy options rolled out by different companies

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