LIC Policy Maturity Calculator — What Will You Get? — India 2026

LIC Maturity Calculator

Understanding Your Investment Returns

This calculator projects your returns using compound interest, where your earnings generate their own earnings over time. The power of compounding means that even small regular investments can grow into substantial wealth over long periods. For example, investing just Rs 5,000 per month at 12% expected returns for 25 years can grow to over Rs 1 crore — of which only Rs 15 lakh is your own money and Rs 85 lakh is compounding returns. The key factors that determine your final corpus are: the amount invested, the rate of return, the duration of investment, and the frequency of compounding.

Important Considerations

Past returns do not guarantee future performance, especially for market-linked instruments like mutual funds and equities. The returns shown are estimates based on the rate you enter. Equity investments carry market risk but have historically delivered 12-15% CAGR over 15+ year periods in India. Fixed income options like PPF (7.1%) and FD (6-7.5%) offer lower but more predictable returns. Diversifying across asset classes — equity, debt, gold, and real estate — reduces overall portfolio risk while optimizing returns for your risk tolerance.

How LIC Maturity Value Is Calculated

For LIC's participating (with-profits) plans, the maturity value has three components: Maturity Value = Basic Sum Assured + Vested Simple Reversionary Bonuses + Final Additional Bonus (FAB). The sum assured is the guaranteed figure printed on your policy schedule. Simple reversionary bonuses are declared by LIC once a year after its statutory actuarial valuation and are expressed per Rs 1,000 of sum assured — for example, a Rs 42 bonus on a Rs 10 lakh policy adds Rs 42,000 for that year. The word "simple" matters: bonuses do not compound. Each year's bonus accrues on the sum assured alone, so a bonus declared in year 3 earns nothing further in years 4-20; it simply vests and is paid out at maturity or on a death claim. The Final Additional Bonus is a one-time loyalty addition paid only on exit (maturity or death), typically only on policies that have run about 15 years or more, and its rate depends on plan, term and sum assured band. Because reversionary bonuses vest annually, a 20-year endowment accumulates 20 separate declarations. Your maturity estimate is therefore: sum assured + (expected average bonus per Rs 1,000 × sum assured in thousands × policy term) + expected FAB — exactly the formula this calculator applies.

LIC Bonus Rates per Rs 1,000 Sum Assured, by Plan Class

LIC declares bonus rates once a year following its actuarial valuation (announced with LIC's annual results), so the figures below are indicative ranges from recent declarations — not guarantees, and the next declaration can move them. - Endowment plans (e.g., New Endowment Plan 914, relaunched as Plan 714 from Oct 2024): roughly Rs 34-45 per Rs 1,000 sum assured per year, with longer terms (20+ years) at the top of the band. - Limited-premium endowment (e.g., Jeevan Labh 936, now 736): roughly Rs 41-50 per Rs 1,000 — among the highest in LIC's participating book. - Money-back plans (e.g., plans 920/921, now 720/721): roughly Rs 33-42 per Rs 1,000, lower because survival benefits are paid out mid-term. - Whole-life class (e.g., Jeevan Umang 945, now 745): roughly Rs 40-50 per Rs 1,000. Final Additional Bonus is far more variable: recent FAB tables have ranged from about Rs 10 per Rs 1,000 for policies exiting around year 15, to several hundred at roughly 25 years, and into the thousands per Rs 1,000 for 40-year durations; higher sum assured bands (Rs 5 lakh and above) often qualify for better FAB slabs. Treat any single year's rate as a snapshot: use a conservative mid-band figure for projections and re-check after each annual declaration rather than assuming the latest rate holds forever.

Worked Example: Rs 10 Lakh Endowment, 20-Year Term

Assume LIC New Endowment Plan, sum assured Rs 10,00,000, term 20 years, annual premium roughly Rs 50,000-52,000 for a 30-year-old (the actual quote varies by age and payment mode). Step 1 — Sum assured: Rs 10,00,000, guaranteed. Step 2 — Reversionary bonuses: assume an average declaration of Rs 42 per Rs 1,000 (mid-band for 20-year endowments in recent years). Yearly accrual = Rs 42 × 1,000 thousands of sum assured = Rs 42,000. Over 20 years: Rs 42,000 × 20 = Rs 8,40,000. Step 3 — Final Additional Bonus: assume Rs 60 per Rs 1,000 for a 20-year exit = Rs 60,000, paid once at maturity. Projected maturity value = 10,00,000 + 8,40,000 + 60,000 = Rs 19,00,000. Against total premiums of roughly Rs 10.2 lakh (Rs 51,000 × 20), that works out to an effective annual return (IRR) of about 5.5-6% — typical for LIC participating endowments, because part of every premium funds life cover and expenses. Sensitivity check: if declarations average Rs 38 instead of Rs 42, maturity drops to about Rs 18.2 lakh; at Rs 46 it rises to about Rs 19.8 lakh. That sensitivity is exactly why this calculator lets you set the bonus assumption yourself instead of hard-coding one year's declared rate.

Surrender vs Paid-Up vs Maturity: What You Actually Receive

Exiting early costs real money, and the three outcomes differ sharply. Surrender: if you stop and encash, LIC pays the higher of the Guaranteed Surrender Value (GSV) or its Special Surrender Value. GSV is a percentage of total premiums paid: IRDAI's schedule starts around 30-35% in the second/third policy year and rises to up to 90% in the final two policy years, plus the cash value of vested bonuses (bonuses are surrendered at a discounted value, not face value). Under IRDAI's revised surrender value regulations effective 1 October 2024, policies acquire a special surrender value after the first full year's premium — early exits are less punishing than before, but still value-destructive. Paid-up: stop premiums after (usually) two full years and the policy continues at a reduced sum assured = original sum assured × (premiums paid ÷ premiums payable). A Rs 10 lakh, 20-year policy made paid-up after 8 years carries a Rs 4 lakh paid-up sum assured plus bonuses already vested — but it earns no new bonuses and generally no FAB. Maturity: full sum assured + all vested bonuses + FAB. Rule of thumb: beyond roughly year 12-15 of a 20-year plan, holding to maturity almost always beats surrendering by a wide margin; before year 3, surrender recovers only a fraction of premiums paid.