LIC Policy Maturity Calculator — What Will You Get?
Estimate maturity value of your LIC policy. Compare actual LIC returns with PPF SIP and FD to make informed investment decisions.
LIC policies have historically delivered 4-6% annual returns including bonuses — significantly below PPF (7.1%) and equity SIP (12-15%). Many policyholders are surprised to find their actual returns are far lower than expected. Understanding your policy's actual return rate helps decide whether to continue or surrender and invest elsewhere.
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Key Information
| Parameter | Details |
|---|---|
| Typical LIC Return | 4% - 6% CAGR (including bonuses) |
| PPF Return (Comparison) | 7.1% (guaranteed tax-free) |
| ELSS SIP Return | 12% - 15% CAGR (historical) |
| LIC Surrender Penalty | Significant in first 3-5 years |
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Use Calculator NowFrequently Asked Questions
What is the actual return on LIC policies?
Most traditional LIC endowment and money-back plans deliver 4-6% CAGR after all bonuses and maturity additions. For comparison: a bank FD gives 7% and PPF gives 7.1% tax-free. LIC returns are among the lowest of all investment options yet people invest crores due to the trust factor and agent push.
Should I surrender my LIC policy?
If you have held for 5+ years: compare the surrender value with investing the same premiums in PPF or ELSS. Usually surrendering after 5 years and redirecting to better investments gives 50-100% more returns over the remaining period. Before 5 years: surrender value is very low making it better to hold or convert to paid-up.
LIC vs SIP for 20 years comparison?
Rs 5000/month LIC premium for 20 years: approximate maturity Rs 20-22 lakh (at 5% return). Rs 5000/month SIP for 20 years at 12%: Rs 49.96 lakh. SIP gives Rs 28-30 lakh MORE. Even at a conservative 10% SIP return you get Rs 38 lakh versus LIC Rs 20-22 lakh. The difference is life-changing.
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Last updated: March 2026