LIC Maturity Calculator
What your LIC policy pays at maturity, and the yearly return that really is, compared with putting the same premiums in PPF.
In LIC's own example for New Jeevan Anand, ₹6,968 a year for 35 years (₹2,43,880 in all) pays ₹4,98,000 at maturity if bonuses run at ₹30 per ₹1,000 a year with a ₹440 final bonus. That is a return of 3.7% a year. The same premiums at today's PPF rate of 7.1% would grow to ₹10,54,391; the policy would need a bonus of about ₹109 per ₹1,000 a year to match it.
The words on this page, explained simply
New to this? Here is what each term means, in plain English.
- Sum assured
- The basic amount your policy promises, printed as Basic Sum Assured on the policy bond. Bonuses are worked out as rupees per ₹1,000 of it.
- Policy term
- The number of years until the policy matures and pays out.
- Simple reversionary bonus
- The bonus LIC adds to a policy each year it is in force, stated per ₹1,000 of sum assured. A rate of ₹40 on a ₹2 lakh policy adds ₹8,000 a year. Once added it is yours, but it is paid only at maturity, on death or, at a lower value, on surrender.
- Final additional bonus
- A one-time bonus LIC may add when a policy matures or a claim is paid, per ₹1,000 of sum assured. It is not guaranteed and is not paid on a paid-up policy.
- Yearly return
- The steady yearly rate that would turn your premiums, each paid at the start of a year, into the maturity amount. It is the fair number to compare with an FD or PPF.
- PPF (Public Provident Fund)
- A government savings scheme. You deposit up to ₹1.5 lakh a year for 15 years at an interest rate the government sets, and both the interest and the final amount are tax-free.
An LIC endowment policy pays the sum assured plus the bonuses added over the years. Enter the numbers on your policy bond and your bonus rate, and the calculator shows the maturity amount and the yearly return it works out to. That return is the number to compare with a bank deposit or PPF.
How the maturity amount is worked out
Maturity amount = sum assured + yearly bonus × number of years + final additional bonus. Both bonuses are stated per ₹1,000 of sum assured. The yearly bonus is added only while premiums are paid; a policy that has stopped paying (paid-up) gets no new bonus and no final bonus.
| LIC's brochure example (₹2 lakh sum assured) | You pay | Maturity at LIC's 8% example | Yearly return |
|---|---|---|---|
| New Jeevan Anand, 35 years | ₹2,43,880 | ₹4,98,000 | 3.7% |
| New Endowment, 35 years | ₹2,17,455 | ₹4,91,000 | 4.1% |
| Jeevan Labh, 25 years (pay 16) | ₹1,60,400 | ₹3,70,000 | 4.8% |
The yearly return is the rate at which your premiums, paid at the start of each year, would have to grow to give the maturity amount. It already counts the fact that early premiums are invested for longer.
LIC policy or PPF?
PPF pays 7.1% a year today, tax-free, and the government resets the rate every quarter. The calculator shows what your premiums would have grown to at that rate, and the yearly bonus your policy would need to match it. An LIC policy also carries life cover, which PPF does not; a separate term plan usually buys far more cover for a small premium.
Where to find your bonus rate
LIC adds a bonus every year, stated per ₹1,000 of sum assured: a rate of ₹40 on a ₹2 lakh policy adds ₹8,000 a year. LIC announces the rates once a year, and they change. Your bonus so far is on your LIC bonus statement and in the LIC customer portal; your agent or branch can tell you this year's rate for your plan and term.
This page does not fill in a rate for you, because LIC does not publish its yearly rates on its website. The example rates are the ones LIC's own brochures use to illustrate an 8% investment return, not declared rates.
Plans covered
| Plan | Plan number | Policy term | You pay premiums for |
|---|---|---|---|
| LIC's New Jeevan Anand | 715 | 15 to 35 years | the whole term; cover of the sum assured continues after maturity |
| LIC's New Endowment | 714 | 12 to 35 years | the whole term |
| LIC's Jeevan Labh | 736 | 16, 21 or 25 years | 10, 15 or 16 years |
The rules are from each plan's policy document and sales brochure on licindia.in. Older versions of these plans (915, 914 and 936) work the same way, but their surrender tables differ, so the surrender calculator covers only the current versions.
Key takeaways
- Maturity = sum assured + yearly bonuses + final bonus, all per ₹1,000 of sum assured.
- Compare the yearly return, not the maturity amount, with PPF or an FD.
- Bonuses are not guaranteed until LIC declares them; use your own policy's rate.
Frequently asked questions
How is LIC maturity amount calculated?
Sum assured, plus the yearly bonus (rate per ₹1,000 × sum assured ÷ 1,000 × years), plus the final additional bonus if LIC declares one. For example, a ₹40 rate on a ₹2 lakh policy adds ₹8,000 a year.
What return does an LIC Jeevan Anand policy give?
In LIC's own brochure example at an 8% investment return, 3.7% a year. Your policy's return depends on the bonus rates LIC declares; enter yours in the calculator.
Is LIC maturity amount taxable?
Usually tax-free if the yearly premium is no more than 10% of the sum assured and, for policies issued from April 2023, your total yearly premium on such policies is no more than ₹5 lakh. Otherwise part of it can be taxed; check your policy's dates with a tax adviser.