About the LIC Maturity Calculator
What is the LIC Maturity Calculator?
Traditional LIC endowment and money-back policies pay the sum assured plus accumulated bonuses at maturity. LIC declares a simple reversionary bonus every year, quoted per ₹1,000 of sum assured, and may add a final additional bonus (FAB) on longer policies.
Enter the basic sum assured, the policy term, the yearly premium and the expected bonus rates. The calculator estimates the maturity amount and, importantly, the effective annual return (IRR) on the premiums you pay — so you can compare the policy fairly with other investments.
How to use the LIC 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 = SA + (SA ÷ 1,000 × Bonus rate × Term) + (SA ÷ 1,000 × FAB rate)
- SA = the basic sum assured
- Bonus rate = simple reversionary bonus per ₹1,000 SA per year
- FAB rate = final additional bonus per ₹1,000 SA
The IRR assumes premiums are paid at the start of each policy year and the maturity amount is received at the end of the term.
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 LIC Maturity Calculator
- Bonus rates are not guaranteed; LIC's simple reversionary bonus on popular endowment plans has typically been ₹40–50 per ₹1,000.
- Most endowment policies return only about 4–6% a year; buying term insurance and investing the difference often builds more wealth.
- For policies issued after 1 April 2023, maturity proceeds are taxable if the total annual premium exceeds ₹5 lakh.