LIC Maturity Calculator
Estimate LIC endowment policy maturity including simple reversionary and final additional bonus. Free, privacy-first — inputs never leave your browser.
Details
Result
Maturity Value
₹21,60,000
Sum Assured
₹10,00,000
Reversionary Bonus
₹9,60,000
Final Bonus
₹2,00,000
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
LIC Endowment Maturity
LIC endowment policies pay a sum assured plus accumulated bonuses at maturity. Simple Reversionary Bonus accrues yearly (typically ₹40-50 per ₹1000 of sum assured). For policies of 15+ years, a Final Additional Bonus (FAB) is also paid. Numbers here are estimates — actual bonuses are declared annually by LIC.
Common questions about LIC
How is LIC endowment maturity calculated?+
Maturity = Sum Assured + Simple Reversionary Bonus (SRB) + Final Additional Bonus (FAB, if eligible). SRB is declared annually as ₹X per ₹1,000 of sum assured; for a 20-year policy with ₹40 SRB: bonus = 40 × 20 × (SA/1000). FAB is a one-time bonus for long-tenure policies (typically 15+ years). Example: ₹10 lakh SA, 20-year LIC Jeevan Anand, ~₹40 SRB: maturity ~₹18-20 lakh.
What is the typical return from LIC endowment policies?+
Realistic CAGR ranges from 4.5% to 6% — much lower than most investors assume. The headline "bonus" amounts look large but translate to modest annualised returns because they're simple (not compounded). Compared to PPF (7.1%), EPF (8.25%), NPS equity (11%-13%), or mutual fund SIPs (12%), endowment returns underperform significantly. Suitable primarily for ultra-conservative savers needing guaranteed capital plus modest growth with life cover.
Are LIC policies tax-free?+
Yes, if conditions met. Section 10(10D) exempts maturity proceeds if the annual premium is within 10% of sum assured (20% for pre-April 2012 policies). Budget 2023 added: for non-ULIP policies with annual premium above ₹5 lakh issued after April 1, 2023, maturity is taxable. Premiums up to ₹1.5 lakh qualify for 80C deduction (old regime). Death benefit is always fully tax-free regardless of premium size.
Should I surrender my LIC policy?+
Depends on tenure completed. Surrender within 3 years: you get zero or very little back. Between 3-5 years: ~30% of premiums paid. After 5 years: 50%-70% of premiums + accrued bonuses. Calculate: will continuing give better IRR than investing the future premiums elsewhere? Often, surrendering a 5-10 year-old policy and redirecting premiums to term insurance + mutual funds yields better outcomes, but run the math individually.
Term insurance vs LIC endowment — which is better?+
Term insurance + mutual fund SIP almost always beats endowment. Example: ₹1 crore term cover for a 30-year-old costs ~₹10,000/year; equivalent endowment with ₹50 lakh SA costs ₹50,000+/year with small savings component. The ₹40,000 difference invested in a Nifty index SIP for 30 years at 12% grows to ₹1.15 crore, vs endowment maturity ~₹25 lakh. Separate protection from investment for optimal outcomes.
Can I take a loan against my LIC policy?+
Yes, after policy has acquired surrender value (usually after 3 years of premium payment). Loan available up to 85%-90% of surrender value, at 9%-10.5% interest (varies by product). Premium payment continues during loan tenure; if unpaid, the policy lapses and the loan amount + interest is deducted from surrender/maturity value. A common use: short-term liquidity without breaking the policy.