LIC Policy Maturity Calculator — What Will You Get? — India 2026
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.
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.
Calculate Now
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.
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 |
Estimate your LIC maturity
Get accurate results instantly — 100% free, no signup required
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.
What is compound interest and why does it matter?
Compound interest means you earn interest on your interest, not just your principal. Over long periods, this creates exponential growth — even small regular investments can grow into substantial wealth over 15-25 years.
Is SIP better than lumpsum investment?
SIP invests a fixed amount monthly, averaging out market volatility through rupee cost averaging. Lumpsum works better when markets are low. For most investors, SIP builds discipline and removes the need to time the market.
How much should I invest monthly to become a crorepati?
At 12% expected returns, a monthly SIP of Rs 5,000 for 30 years grows to approximately Rs 1.76 crore. Increasing your SIP by 10% annually makes the corpus even larger. Start early, stay consistent.
Are investment returns taxable?
PPF returns are tax-free. Equity mutual fund LTCG above Rs 1.25 lakh/year is taxed at 12.5%. FD interest is taxed at your slab rate. NPS offers an additional Rs 50,000 deduction under 80CCD(1B).
Related Calculators
More Investment Calculators
Last updated: March 2026