LIC Maturity Calculator 2025
Estimate your LIC Policy maturity in INR & USD
Estimated Result
*Bonuses are non-guaranteed and based on the rates you provide.
FAQs on LIC Maturity Calculation
The **Bonus Rate (Simple Reversionary Bonus)** is declared annually by LIC and is guaranteed once added to your policy. It’s calculated for every year of the policy term. The **Final Additional Bonus (FAB)** is a one-time bonus paid only at the time of maturity (or death claim) for policies that have run for a specific long duration, typically 15 years or more. FAB is highly variable and depends on market performance right up to the end.
The Annual Premium is required to calculate the **Total Premiums Paid** over the policy term. This is crucial for determining your estimated **Absolute Return Percentage**. By comparing the total maturity amount against the total amount you invested, you can understand the performance and effectiveness of your policy.
The calculator uses a fixed, illustrative exchange rate (set to ₹83.5 in the script) to convert the calculated Indian Rupee (INR) amounts into US Dollars (USD). This conversion is purely for convenience and estimation, particularly for NRIs or global planners. **Note: The actual maturity payout from LIC is always in INR, and the final conversion rate will depend on the market rate at the time of maturity.**
No. The calculator displays the **Absolute Return Percentage**—the total profit made as a percentage of total premiums paid over the policy term. The **IRR (Internal Rate of Return)** is a more complex calculation that factors in the time value of money (the effect of time on the value of a rupee). The absolute return provides a simpler, quick benchmark for policy performance.
This calculator is best suited for traditional **participating** plans like **Endowment**, **Jeevan Anand**, and **Jeevan Labh**, where the maturity value is a function of Sum Assured and accrued bonuses. It is **not suitable for ULIPs** (Unit-Linked Insurance Plans), whose returns are market-linked, or non-participating plans with guaranteed fixed returns.
LIC Maturity Planning with the Versatile Calculator
For generations, the Life Insurance Corporation of India (LIC) has symbolized security and long-term saving. Millions of households rely on their LIC maturity payout to fund crucial life goals, from securing a comfortable retirement to providing a substantial corpus for their children’s future. Yet, calculating the actual maturity amount for a traditional, participating policy is notoriously complex.
The final figure isn’t just the guaranteed Sum Assured. It’s a blend of fixed and variable components—annual bonuses, terminal bonuses, and premiums paid—all calculated over decades. To empower policyholders and financial planners, we have developed the Advanced LIC Maturity Calculator.
This calculator stands out because it offers essential inputs for different policy types, enables currency conversion for global investors, and, most importantly, provides the crucial metrics needed for strategic financial planning.
This guide will walk you through the nuances of LIC maturity, explain the mechanics behind the calculator, and show you how to use the results to optimize your long-term goals.
Part I: Deconstructing the LIC Payout Formula
To get a realistic estimate from the calculator, you must first understand the three financial pillars that constitute the final maturity cheque for most participating plans (like Endowment, Jeevan Labh, or Jeevan Anand‘s endowment component):
$$ \text{Total Maturity Estimate} = \text{Sum Assured} + \text{Total Accrued Bonus} + \text{Final Additional Bonus (FAB)} $$
1. The Sum Assured (SA): The Guaranteed Base
This is the fixed, guaranteed amount the policy promises. It’s set at the beginning and remains constant. This figure is the foundation upon which all bonus calculations are based.
2. The Total Accrued Bonus (Simple Reversionary Bonus)
This component represents the policy’s yearly growth based on LIC’s investment performance.
- Mechanism: LIC declares a Simple Reversionary Bonus (SRB) rate annually (e.g., ₹45 per ₹1,000 SA). This amount is added to the policy’s value each year. Once added, it becomes guaranteed.
- Calculator Input: The calculator asks for the Bonus Rate (per ₹1000 SA). You should input a realistic, conservative average of the SRB rates declared for your policy type over the last few years.
- Formula: Total Bonus=(Sum Assured/1000)×Bonus Rate×Policy Term
3. The Final Additional Bonus (FAB): The Loyalty Premium
The FAB is a one-time reward paid only when the policy completes its full tenure (typically 15+ years).
- Variability: FAB is highly discretionary, decided by LIC near the settlement date. It serves to reward policyholders who have remained invested for a very long period. It is usually negligible for short terms (15-20 years) but can be significant for terms of 25 years or more.
- Calculator Input: We provide a dedicated input field for the Final Additional Bonus (per ₹1000 SA). If your policy term is long, you should check historical FAB charts for similar long-term policies to provide a working assumption.
Part II: Utilizing the Advanced Calculator Features
Our calculator requires five key inputs that allow it to provide a holistic financial picture, unlike simpler tools.
A. Total Premiums Paid (The Cost Basis)
By requiring the Annual Premium and the Policy Term, the calculator automatically calculates the Total Premiums Paid.Total Premiums Paid=Annual Premium×Policy Term
This figure is essential because it forms the basis for the ultimate metric of performance: the return percentage.
B. Estimated Absolute Return Percentage
This feature is arguably the most valuable tool for performance assessment.
Returns Percentage=Total Premiums Paid(Total Maturity Estimate−Total Premiums Paid)×100
This percentage tells you, simply and clearly, the overall profit your policy is expected to generate over its entire lifetime, relative to the capital invested. While it’s not the complex Internal Rate of Return (IRR), which accounts for the time value of money, the Absolute Return is a vital, easy-to-digest benchmark for comparing the raw performance of your LIC policy against other pure savings vehicles.
C. The Global Perspective: INR & USD Conversion
For Non-Resident Indians (NRIs), individuals planning to repatriate funds, or those with global assets, the ability to instantly switch between INR and USD is a powerful planning feature.
- Functionality: The calculator uses a predefined, indicative exchange rate (e.g., ₹83.5 per dollar) for on-the-fly conversion.
- Crucial Disclaimer: The actual maturity payout from LIC is always disbursed in Indian Rupees (INR). The USD figure provided by the calculator is a temporary estimate. Your actual dollar value will depend on the real-time market exchange rate on the day you convert the INR proceeds. This calculator feature acts as a planning forecast, allowing you to project what your INR maturity might translate into for international needs.
Part III: Strategic Financial Planning with Your Estimate
Once you have generated your maturity estimate, the real work begins: integrating that number into your comprehensive financial plan.
1. Goal Alignment and Gap Analysis
Your estimated maturity amount should be benchmarked against a specific, inflation-adjusted life goal. For example, if you estimate a ₹50 Lakh maturity for your child’s higher education in 20 years, but financial projections show you’ll need ₹80 Lakh, the calculator has immediately identified a ₹30 Lakh savings gap. This precise quantification allows you to take immediate, corrective action—such as increasing monthly systematic investment plan (SIP) contributions or re-evaluating other long-term investment strategies.
2. Tax Efficiency Strategy
In India, the maturity proceeds from most LIC policies are tax-free under Section 10(10D) of the Income Tax Act (subject to certain premium limits). Knowing your tax-free maturity amount allows for efficient portfolio allocation. You can use the guaranteed, tax-free LIC proceeds for core expenses (like principal retirement corpus) and allocate other, potentially higher-return but taxable investments (like equity mutual funds) for growth and supplementary income. This strategic separation maximizes the benefit of the LIC tax exemption.
3. Evaluating Policy Status: Paid-Up vs. Continuation
If your maturity estimate seems low, you might be considering discontinuing premium payments.
- Paid-Up: If you stop paying premiums after the minimum period (usually 2 or 3 years), the policy becomes ‘Paid-Up.’ The Sum Assured is reduced, and future bonuses cease, but accrued bonuses remain guaranteed.
- Surrender: If you surrender the policy entirely, you receive only the Guaranteed Surrender Value (GSV).
The calculator helps here by providing the Total Premiums Paid. By comparing the potential estimated maturity against the low returns of the Paid-Up value or the financial loss of surrendering, you can make a calculated decision. Generally, for long-term policies, the high FAB and the continuing addition of SRBs often make continuing the policy a more financially sensible choice than surrendering it, especially after 10-15 years.
Part IV: A Note on Assumed Bonus Rates
The single biggest variable in this entire calculation is the Bonus Rate. Because this rate is non-guaranteed and determined by LIC’s annual performance, the quality of your estimate depends entirely on the rate you input.
Tips for selecting a realistic Bonus Rate:
- Be Policy Specific: Do not use the rate from a Money Back policy for an Endowment policy. Bonus rates differ significantly between plans.
- Use a Conservative Average: Instead of relying on a single, high-performing year, find the bonus rates for your specific policy type and duration over the last 5-7 years and calculate a weighted average. This hedges against short-term economic fluctuations.
- Factor in Duration: For very long terms (25+ years), consider using a slightly lower conservative rate in your projection. As interest rates globally have stabilized at lower levels than 20 years ago, it is prudent to assume future long-term rates may not match historical peaks.
Conclusion
The LIC Maturity Calculator is far more than a simple projection tool. It is a robust instrument for disciplined financial planning. By accurately inputting your policy details and thoughtfully selecting your assumed bonus rates, you can transform the complex, multi-layered reality of an LIC policy into a clear, actionable component of your overall wealth strategy.
Utilize the calculated Sum Assured, Total Premiums Paid, and the estimated Absolute Return Percentage to make proactive decisions today that secure your financial comfort tomorrow.
Disclaimer: This tool does not constitute financial or investment advice. Always consult your official LIC policy document, agent, or a qualified financial advisor before making investment decisions.