LIC Maturity Calculator 2026

LIC Maturity Value Calculator

Maturity Benefit: ₹ 0
Estimated Reversionary Bonus: ₹ 0
Estimated FAB: ₹ 0
Estimated Maturity Value: ₹ 0
Total Premium Paid: ₹ 0
Estimated Gain: ₹ 0

Note: This calculator estimates the amount payable at maturity based on user-entered assumptions. For Money Back plans, this does not include previous survival benefits paid during the term. For this estimate, the entered SRB rate is applied annually to the Basic Sum Assured for the selected policy term. Total Premium Paid is estimated as Annual Premium × Policy Term and assumes premiums are paid annually throughout the full policy term. Actual bonus entitlement and maturity proceeds may differ depending on the specific LIC plan, declared bonuses, eligibility conditions, and policy terms.

Frequently Asked Questions

It is a digital tool that helps policyholders estimate their future policy returns by calculating the applicable Maturity Benefit alongside estimated accrued bonuses payable at the end of the term, while also revealing the estimated gain against total premiums paid.
The estimated maturity value is the sum of the applicable Maturity Benefit (which varies between Endowment and Money Back plans), the accumulated Simple Reversionary Bonus, and the Final Additional Bonus (if applicable).
SRB is an annual profit share declared by LIC per ₹1,000 of the Basic Sum Assured. It accrues each year during the policy term and is paid out at maturity or death.
FAB is a one-time additional bonus that may be payable at maturity or on other eligible events, subject to the applicable LIC plan terms and declared bonus rates.
Life insurance maturity proceeds may qualify for exemption under Section 10(10D) of the Income Tax Act, subject to applicable conditions and exceptions. Tax treatment can depend on factors such as the policy type, issue date, annual premium, and sum assured. Consult a tax professional for advice based on your specific policy.
In Money Back plans, parts of the sum assured are paid as survival benefits during the term. At maturity, you receive the remaining balance of the Basic Sum Assured, plus bonuses calculated on the full Basic Sum Assured. This calculator estimates only the final maturity payout, not the total survival benefits received earlier.
Surrendering a policy before maturity terminates the contract early. You will receive a Guaranteed Surrender Value (or Special Surrender Value), which is typically significantly lower than the projected maturity value.
No. While the Basic Sum Assured is guaranteed, annual bonus rates and final additional bonuses fluctuate based on the valuation of the corporation’s profits and actuarial surplus for that financial year.
Once the policy matures and the required discharge forms and documents are submitted, LIC verifies the records and processes the maturity claim according to its settlement guidelines, crediting the eligible proceeds to your registered bank account.
You typically need to submit the original policy document, a duly filled discharge form, identity and address proofs, and a cancelled cheque or bank mandate for electronic transfer verification.

Understanding LIC Maturity Calculations

Securing your financial future through life insurance is a cornerstone of robust financial planning in India. The Life Insurance Corporation of India (LIC) offers traditional policies that provide an excellent blend of risk protection and long-term savings.

As a policyholder, you invest your money by paying regular premiums over years or even decades. Naturally, anticipating the final payout at the end of the policy term, as well as understanding the actual net gain on your investment, is a primary concern. This final lump sum is known as the maturity benefit.

To effectively plan major life milestones, such as a child’s higher education, purchasing a home, or building a retirement corpus, you need a reliable estimate of your future cash inflows. However, due to variables like survival benefits, fluctuating bonus rates, and optional terminal additions, calculating this manually can quickly become confusing.

This is precisely where a properly designed LIC maturity value calculator proves invaluable. It replaces guesswork with a clear mathematical framework. By inputting your specific policy details and annual premium, you can model expected returns, calculate total premium outlays, and establish realistic financial expectations based on current and historical bonus trends.

To use an estimator accurately, it is vital to understand the difference between the Basic Sum Assured and the Maturity Benefit. This distinction is at the heart of how different traditional policies function.

If you invest in a standard With-Profits Endowment Plan, the mathematics are straightforward. The policy is designed to pay out 100% of your Basic Sum Assured at the end of the tenure, assuming you survive the term and all premiums have been paid.

Conversely, Money Back policies operate with a different structure. These plans are designed to provide periodic liquidity by releasing survival benefits throughout the policy term. Therefore, the final maturity payout does not represent the total benefits of the policy, but only the final remaining installment.

For example, depending on your policy terms, you might receive parts of the sum assured during the term, leaving a specific remaining percentage payable at maturity. Entering this correct final percentage is crucial to getting an accurate estimate of your final payout.

Despite this reduced final base amount in a Money Back plan, there is a distinct advantage that policyholders must recognize. Even though you only receive a fraction of the sum assured as the final Maturity Benefit, the accumulated profit shares, known as bonuses, are always calculated on the full Basic Sum Assured.

This brings us to the core engine of your policy’s growth: the Simple Reversionary Bonus (SRB). At the end of every financial year, LIC assesses its surplus and declares bonus rates across its various plans. This rate is typically declared per ₹1,000 of your Basic Sum Assured.

Because it is a “reversionary” bonus, it does not compound. Instead, the annual bonus amount accrues steadily within your policy account year after year. For estimation purposes, an assumed SRB rate is applied annually to the Basic Sum Assured for the selected policy term. When your policy matures, these accumulated bonuses are added to your Maturity Benefit.

Beyond the annual bonus, many policyholders are rewarded with a Final Additional Bonus (FAB). The FAB acts as an exceptional terminal loyalty reward for individuals who maintain their policies over extended durations. It depends heavily on the specific plan terms, the duration of the policy, and LIC’s annual declarations. When applicable, the FAB provides a significant boost to long-term investors.

Once you have gathered all these figures, the estimated formula comes together beautifully. The final projected maturity value is derived by adding the applicable Maturity Benefit, the total estimated Simple Reversionary Bonus, and the Final Additional Bonus (if your policy qualifies).

Equally important is measuring your estimated gain. By multiplying your annual premium by the total policy term, the calculator instantly reveals your total premium paid. Subtracting this total outlay from your estimated maturity value uncovers the estimated gain, offering a transparent look at your true return on investment.

Another crucial factor that amplifies the appeal of traditional life insurance is the tax treatment of the maturity proceeds. Unlike many traditional savings accounts, life insurance payouts can often be received without tax deductions eroding their value.

Life insurance maturity proceeds may qualify for exemption under Section 10(10D) of the Income Tax Act, subject to applicable conditions and exceptions. The exact tax treatment can depend heavily on factors such as the specific policy type, the issue date, the annual premium paid, and the overall sum assured.

Because tax laws frequently evolve and individual financial circumstances vary, it is always recommended to consult a tax professional for advice based on your specific policy and premium structure.

As your policy nears its completion date, you must also prepare for the claim settlement process. While LIC is renowned for its reliable claim settlement, policyholders must still fulfill certain procedural requirements to ensure a swift transfer of funds. Submitting your discharge form and KYC documents promptly allows the corporation to review your file and credit the eligible maturity proceeds directly to your registered bank account.

By utilizing a dynamic maturity value calculator, you empower yourself with financial clarity. Estimating your returns helps you balance your investments, understand your net gain, and ensure that your life insurance portfolio successfully bridges the gap between your current savings and your future aspirations.