How is LIC maturity calculated?

Maturity = Sum Assured + Simple Bonus + Loyalty Addition. Simple bonus is calculated as (Sum Assured / 1000) × Bonus Rate × Policy Term.

What is the loyalty addition?

Loyalty addition is an extra 10% of simple bonus given for policies with term 15 years or more. It rewards long-term policyholders.

What bonus rate should I use?

LIC declares bonus rates annually, typically ₹40-60 per ₹1000 sum assured. Check LIC's latest bonus declaration or use ₹48-52 for conservative estimates.

Does payment frequency affect maturity?

Yes, premium payment frequency affects bonus calculation. Yearly payments get full bonus, while half-yearly, quarterly, and monthly payments have slightly lower factors.

Is LIC maturity amount taxable?

Maturity proceeds are tax-free under Section 10(10D) if annual premium is less than 10% of sum assured (for policies after April 2012).

How accurate is this calculator?

This calculator provides estimates based on assumed bonus rates. Actual maturity depends on LIC's future bonus declarations, which may vary.

What types of LIC policies does this cover?

This calculator works for traditional endowment and money-back policies. ULIPs and term plans have different calculation methods.

Can I use this to compare LIC vs other investments?

Yes, compare the projected maturity with other fixed-income options. Consider LIC's guaranteed returns and insurance coverage as additional benefits.

India LIC Maturity Calculator

Estimate LIC maturity with bonus, loyalty addition, frequency and age factors.

Enter your sum assured, policy term, and bonus rate to see your projected maturity amount instantly.

Policy inputs

Sum assured

₹

Policy term (years)

Age

Bonus rate (per ₹1000)

Include loyalty addition (term ≥ 15y)

Results

Bonus rate 30 / ₹1000Typical: 40 - 60

Simple bonus

₹60,000

Total bonus

₹66,000

Loyalty addition

₹6,000

Maturity amount

₹172,000

Composition chart

Payout

Sum assured₹100,000

Bonus₹66,000

Loyalty₹6,000

Maturity composition

Bonus vs maturity

Total bonus₹66,000

Maturity amount₹172,000

Bonus is computed as (sum assured / 1000) × bonus rate × term, adjusted by frequency and age factors. Loyalty adds 10% of bonus for terms ≥ 15 years.

Component	Amount	Notes
Simple bonus	₹60,000	(SA / 1000) × bonus rate × term
Loyalty addition	₹6,000	Applies when term ≥ 15 years and enabled
Total bonus	₹66,000	Frequency factor 1 × age factor 1.1
Maturity amount	₹172,000	Sum assured + total bonus + loyalty

Common LIC policy maturity examples

Quick reference for typical policy maturity values across different terms

Short Term (10 years)

₹1.0L×10y→₹1.4L

₹2.0L×10y→₹2.9L

₹3.0L×10y→₹4.4L

₹5.0L×10y→₹7.5L

Entry-level policies with faster maturity

Medium Term (15 years)

₹2.0L×15y→₹3.4L

₹3.0L×15y→₹5.3L

₹5.0L×15y→₹8.9L

₹10.0L×15y→₹18.3L

Balanced growth with loyalty bonus

Long Term (20-25 years)

₹5.0L×20y→₹10.0L

₹10.0L×20y→₹20.4L

₹15.0L×20y→₹31.5L

₹20.0L×25y→₹47.5L

Maximum compound growth potential

Premium Policies

₹25.0L×15y→₹45.6L

₹50.0L×20y→₹1.1Cr

₹1.0Cr×20y→₹2.1Cr

₹2.5Cr×25y→₹5.9Cr

High sum assured for wealth creation

Real-world LIC planning scenarios

See how LIC policies fit different life stages and financial goals

👶

Child's Future Planning

Secure education and marriage funds for children

Sum: ₹10 lakh for 15 years = ₹18.5 lakh maturity

Ideal age: Start when child is 0-5 years

Use case: College fees, higher education abroad

💍

Marriage Planning

Build corpus for wedding expenses

Sum: ₹5 lakh for 10 years = ₹8.5 lakh maturity

Start 10 years before expected wedding

Cover jewelry, venue, and ceremony costs

🏠

Home Loan Closure

Plan maturity to align with loan tenure

Sum: ₹20 lakh for 20 years = ₹42 lakh maturity

Match policy term with remaining loan tenure

Use maturity for lump sum prepayment

🎓

Higher Education

Fund professional courses and degrees

Sum: ₹8 lakh for 12 years = ₹15 lakh maturity

Time maturity for class 12 completion

Cover engineering, medical, MBA fees

👴

Retirement Corpus

Build long-term wealth for post-retirement

Sum: ₹25 lakh for 25 years = ₹62 lakh maturity

Start in 30s, mature at 55-60 years

Supplement pension and PF corpus

🛡️

Family Protection

Ensure financial security for dependents

Sum: ₹50 lakh term with endowment rider

Coverage: 10-15x annual income

Protects family against income loss

💰

Wealth Creation

Disciplined savings with guaranteed returns

Sum: ₹15 lakh for 20 years = ₹35 lakh maturity

Effective yield: 5-6% tax-free returns

Safe alternative to market investments

📈

Tax Saving

Maximize Section 80C deductions

Premium up to ₹1.5 lakh/year deductible

Maturity tax-free under Section 10(10D)

Combine with PPF and ELSS for full 80C

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Trusted LIC calculation methodology

Understand the science and standards behind accurate maturity projections

📊

Calculation precision

Our LIC maturity calculator uses official bonus declaration rates and LIC's standard calculation formulas to provide accurate maturity estimates.

🏛️

LIC authority standards

Calculations align with Life Insurance Corporation of India's published guidelines and historical bonus patterns.

🛡️

Projection reliability

While actual maturity depends on LIC's future bonus declarations, our projections use conservative historical averages.

Frequently Asked Questions

Find answers to common questions about this tool

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