Understanding LIC Policy Maturity
When you invest in traditional LIC endowment or money-back plans (like Jeevan Anand, Jeevan Labh, or Jeevan Lakshya), your final payout at the end of the policy term is known as the Maturity Benefit. Our LIC Maturity Calculator helps you estimate this amount so you can plan your financial goals accurately.
Unlike fixed deposits, insurance policy returns depend on the profits the corporation makes, which are distributed to policyholders in the form of "Bonuses".
How is Maturity Calculated?
For standard with-profit endowment plans, the maturity formula is:
Maturity Amount = Basic Sum Assured + Total Reversionary Bonus + Final Additional Bonus
- Basic Sum Assured (BSA): The guaranteed face value of your policy.
- Reversionary Bonus: Declared annually as ₹X per ₹1,000 of BSA. Total bonus = (Bonus Rate × BSA / 1000) × Policy Term.
- Final Additional Bonus (FAB): A one-time loyalty bonus paid on maturity for policies usually running longer than 15 years. Total FAB = (FAB Rate × BSA / 1000).
Factors Influencing Your Return
- Policy Term: Longer policy terms usually attract higher annual bonus rates and a significantly higher Final Additional Bonus.
- LIC's Performance: Because bonuses are a share of LIC's valuation surplus, the declared rates may fluctuate slightly year over year based on their market performance.
- Plan Type: Different plans (e.g., Endowment vs. Money Back) have different bonus declaration rates. Always check the historical bonus rates for your specific plan table number.