About the Insurance Maturity Calculator
What is the Insurance Maturity Calculator?
Traditional life insurance savings plans — endowment, money-back and whole-life policies from LIC and private insurers — combine life cover with a maturity benefit. The maturity value is typically the sum assured plus bonuses declared over the policy term.
Enter the sum assured, policy term, annual premium and bonus rates from your policy illustration. The calculator estimates the maturity amount, the bonuses and the effective annual return on your premiums, which is the number to compare against a PPF, FD or mutual fund.
How to use the Insurance Maturity Calculator
- Basic Sum Assured (₹) (sample: 10,00,000)
- Policy Term (years) (sample: 20)
- Annual Premium (₹) (sample: 50,000)
- Simple Reversionary Bonus (₹ per ₹1,000 sum assured per year) (sample: 45)
- Final Additional Bonus (₹ per ₹1,000 sum assured) (sample: 0)
- Press Calculate Maturity Amount (results also refresh as you type). The result card shows the Estimated Maturity Amount, along with Total premiums paid, Accrued bonus, Final additional bonus and Effective annual return (IRR).
Formula used
Maturity value = Sum assured + Reversionary bonuses + Final additional bonus
- Reversionary bonuses = sum assured ÷ 1,000 × bonus rate × years
- Effective return = the IRR of paying the premium each year and receiving the maturity value at the end
Guaranteed additions, loyalty additions or cash-back payouts in some plans should be added to the bonus figures.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Basic Sum Assured (₹) | 10,00,000 |
| Policy Term (years) | 20 |
| Annual Premium (₹) | 50,000 |
| Simple Reversionary Bonus (₹ per ₹1,000 sum assured per year) | 45 |
| Final Additional Bonus (₹ per ₹1,000 sum assured) | 0 |
| Result | Value |
|---|---|
| Estimated Maturity Amount | ₹19,00,000 |
| Total premiums paid | ₹10,00,000 |
| Accrued bonus | ₹9,00,000 |
| Final additional bonus | ₹0 |
| Effective annual return (IRR) | 5.78% |
Tips for using the Insurance Maturity Calculator
- Look at the insurer's benefit illustration at 4% and 8% — the actual result usually falls between them.
- Surrendering early often returns much less than the premiums paid; check the surrender value table.
- Keep life cover and investment separate for better flexibility and returns.