LIC Maturity Calculator — Estimate Your LIC Policy Maturity Instantly (Tool + Guide)
Get an instant estimate: Enter your plan, sum assured and term — click Calculate to view maturity, surrender and paid-up values. Start now
Quick LIC Maturity Calculator
Enter your policy details to get an instant estimate of your maturity, surrender, and paid-up values.
Quick Answer: Sample LIC Maturity Estimates
Curious what a typical LIC policy yields? Here are some illustrative maturity amounts for a standard endowment plan with an assumed bonus rate of ₹45 per ₹1,000 Sum Assured.
| Sum Assured | Term | Total Premiums Paid (approx) | Estimated Maturity (approx) |
|---|---|---|---|
| ₹5,00,000 | 20 yrs | ₹4,50,000 | ₹9,50,000 |
| ₹10,00,000 | 25 yrs | ₹8,40,000 | ₹22,00,000 |
| ₹1,00,00,000 | 20 yrs | ₹90,00,000 | ₹2,10,00,000 |
How to Calculate LIC Policy Maturity Value Online
This calculator demystifies your LIC policy returns by applying the standard formula used for traditional endowment plans. Here’s the core logic:
Maturity Value = Basic Sum Assured + (Vested Bonus × Policy Term) + Final Additional Bonus (FAB)
Formula Breakdown:
- Basic Sum Assured (SA): The guaranteed amount you receive at maturity.
- Vested Simple Reversionary Bonus: This is the bonus declared by LIC each year. It's calculated per ₹1,000 of your Sum Assured. For example, if the bonus rate is ₹42 and your SA is ₹10 Lakh, the bonus for that year is (10,00,000 / 1000) * 42 = ₹42,000. Our calculator multiplies this annual bonus by the policy term to find the total.
- Final Additional Bonus (FAB): This is a one-time loyalty bonus paid at maturity for policies that have run for a long duration (typically 15+ years). It is also calculated per ₹1,000 SA and varies widely. You can input an illustrative rate, or leave it blank.
Key Assumptions
- The bonus rates you enter are illustrative and assumed to remain constant for the entire policy term. Actual bonuses depend on LIC's performance and are not guaranteed.
- GST paid on premiums is not included in the 'Total Premiums Paid' calculation, as it does not contribute to the maturity value.
Death Benefit Explained
In the unfortunate event of the policyholder's death during the policy term, the nominee receives the 'Sum Assured on Death' plus any vested bonuses. This 'Sum Assured on Death' is defined as the higher of:
- 125% of the Basic Sum Assured
- 7 times the annualized premium
Example
For a ₹10 Lakh policy with an annual premium of ₹50,000, the Sum Assured on Death would be the higher of ₹12.5 Lakh (125% of 10L) or ₹3.5 Lakh (7 x 50k), which is ₹12.5 Lakh, plus any accumulated bonuses.
Paid-Up Value Explained
If you stop paying premiums after at least two full years, your policy doesn't lapse completely. It becomes a 'paid-up' policy with reduced benefits. You don't have to pay any more premiums, and you will receive the 'Paid-up Sum Assured' plus vested bonuses at maturity.
Paid-up Value = Sum Assured × (No. of Premiums Paid / Total Premiums Payable)
Example
If you have a 25-year policy with a ₹10 Lakh Sum Assured and a 16-year PPT, and you stop paying after 8 years, your Paid-up Sum Assured becomes: ₹10,00,000 * (8 / 16) = ₹5,00,000. This amount, plus bonuses accrued for 8 years, will be paid at maturity.
Inputs Explained: What You Must Enter
- Plan Preset: Selecting a specific plan like 'Jeevan Labh' helps the tool apply correct Premium Paying Terms (PPT) and typical bonus ranges.
- Premium & Term: The annual premium and the full policy term are needed to calculate total investment. Note the difference between Policy Term (e.g., 25 years) and Premium Paying Term (e.g., 16 years for Jeevan Labh).
- Bonus & FAB Rates: The most critical inputs for an accurate estimate. You can find these in your annual policy statement or use the historical average of ₹40-₹48 as a guideline.
- Surrender/Loan Dates: Your Date of Birth and the date of the last premium paid are required to calculate the precise Surrender Value and loan eligibility, as these are age- and term-dependent.
Worked Examples & IRR Calculation
Example 1: 30-Year-Old, ₹10 Lakh Cover, 25-Year Term
Inputs: SA = ₹10L, Term = 25 yrs, Annual Premium ≈ ₹42,000, Bonus Rate = ₹45/1000, FAB Rate = ₹100/1000.
Calculation:
Maturity = 10,00,000 + ( (10,00,000/1000)*45*25 ) + ( (10,00,000/1000)*100 )
= 10,00,000 + 11,25,000 + 1,00,000 = ₹22,25,000
Approx. IRR: ~6.1% (tax-free)
Example 2: 35-Year-Old, ₹5 Lakh Cover, 15-Year Term
Inputs: SA = ₹5L, Term = 15 yrs, Annual Premium ≈ ₹34,000, Bonus Rate = ₹40/1000.
Calculation:
Maturity = 5,00,000 + ( (5,00,000/1000)*40*15 )
= 5,00,000 + 3,00,000 = ₹8,00,000
Approx. IRR: ~5.8% (tax-free)
Surrender, Paid-up and Loan Calculations
After paying premiums for at least 2 full years, your policy gains a 'Surrender Value'. This value is used to determine how much you get if you close the policy early, or how much you can borrow against it.
- Guaranteed Surrender Value (GSV): A percentage of total premiums paid (e.g., 30% after 3 years) plus a percentage of vested bonuses. This is the minimum you'll receive.
- Special Surrender Value (SSV): A higher, non-guaranteed value calculated by LIC, often closer to the real cash value. Our calculator estimates this.
- Loan: You can typically borrow up to 90% of the Special Surrender Value.
Loan Calculation Example: If you've paid ₹2 Lakh in premiums over 5 years, your SSV might be around ₹1.5 Lakh. You could then take a loan of up to 90% of that, which is ₹1.35 Lakh.
LIC Bonus Rates (Historical Trends)
The 'bonus rate' is the most important variable in your maturity calculation. LIC declares this rate each year. While not guaranteed, looking at past rates gives a realistic expectation.
Compare: LIC Maturity vs. Other Investments
How does an LIC maturity payout stack up against other popular investment options?
| Instrument | Typical Return (p.a.) | Risk Level | Tax on Maturity |
|---|---|---|---|
| LIC Endowment | ~5-6% | Very Low (Sovereign-backed) | Tax-Free (u/s 10(10D)) |
| Bank FD | ~7% | Low | Taxable as per slab |
| PPF | ~7.1% | Very Low (Sovereign) | Tax-Free |
| Equity Mutual Funds | ~12-15% | High (Market Risk) | Taxable (LTCG > ₹1L) |
Even within LIC, different plans serve different purposes.
| Feature | Jeevan Labh | Jeevan Anand | Single Premium |
|---|---|---|---|
| Payment | Limited (e.g. 16/25) | Regular (Full Term) | One-Time |
| Best For | Goal-based savings | Legacy + Savings | Lump-sum investors |
| Maturity | SA + Bonus + FAB | SA + Bonus + FAB | SA + Bonus + FAB |
Plan-Specific Maturity Calculators
Different plans have unique features. Our calculator presets help adjust for these, but here’s a quick guide to our dedicated tools:
Frequently Asked Questions (FAQs)
Take Control of Your Financial Future
Understanding your policy's maturity value is a crucial step in financial planning. It allows you to see if you're on track to meet your goals and make necessary adjustments. Use this calculator to gain clarity, download your results for future reference, and take the next confident step in your investment journey.
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