The Maturity Formula
For all standard LIC endowment plans, the maturity amount is calculated using this formula:
Maturity Amount = Sum Assured + Accrued Bonus + FAB
For Money Back plans, the formula is slightly different:
Maturity Payout = (Remaining % of SA) + Accrued Bonus + FAB
+ Survival Benefits already received during the term
3 Components Explained
The guaranteed base amount you chose when buying the policy. This is the minimum amount payable at maturity (or on death). Common values: ₹5 Lakh, ₹10 Lakh, ₹25 Lakh. The SA never changes during the policy term.
LIC declares a bonus rate every year (e.g., ₹50 per ₹1,000 SA). This bonus accumulates over all policy years. Once declared, it is guaranteed and cannot be taken back. Formula: Bonus Rate × (SA ÷ 1,000) × Number of Years.
A one-time bonus paid at maturity for policies with terms of 15+ years. The FAB rate depends on the policy term — longer terms get higher FAB. Formula: FAB Rate × (SA ÷ 1,000). This is NOT guaranteed in advance.
Step-by-Step Calculation — Jeevan Anand (₹10L, 20yr)
Let's calculate maturity for a New Jeevan Anand (Plan 715) policy with ₹10,00,000 SA and 20-year term:
SA = ₹10,00,000
Bonus rate for Plan 715 ≈ ₹50 per ₹1,000 SA
Bonus per year = 50 × (10,00,000 ÷ 1,000) = ₹50,000/year
Total bonus for 20 years = 50,000 × 20 = ₹10,00,000
FAB rate for 20-year term ≈ ₹220 per ₹1,000 SA
FAB = 220 × (10,00,000 ÷ 1,000) = ₹2,20,000
Maturity = ₹10,00,000 + ₹10,00,000 + ₹2,20,000
= ₹22,20,000 (approximately)
Money Back Plan — Different Formula
Money Back plans pay survival benefits during the term, so the maturity payout is lower — but the total benefit is similar. Here's how it works for Plan 720 (Money Back 20 Years):
*Bonus rate ₹52/1000, FAB ₹230/1000 for Plan 720. These are approximate estimates.
Plan-Wise Maturity Examples — ₹10L SA, 20-Year Term
Here's a quick comparison of estimated maturity for popular plans (Age 30, ₹10,00,000 SA, 20-year term where available):
*Money Back total includes ₹6L survival benefits paid during term. **Jeevan Umang maturity at age 100; also pays 8% SA yearly after PPT. All amounts are approximate estimates based on current bonus rates. Actual amounts may vary. Source: licindia.in
Use Our Free Maturity Calculator
Instead of calculating manually, use our free online calculator that does all the math instantly:
Enter your plan, age, SA, and term — get instant maturity estimate with bonus & FAB breakdown.
Calculate Maturity Amount →💡 Expert Tip (Haresh Hirapara): The maturity amounts shown above are estimates based on current approximate bonus rates. Actual maturity depends on the bonus rates LIC declares each year, which can vary. For the confirmed maturity amount, contact your LIC branch 6 months before your policy's maturity date.
Frequently Asked Questions
This article is for educational and informational purposes only. LIC-Calculator.com is not affiliated with LIC of India. All maturity amounts shown are approximate estimates based on current bonus rates. Actual maturity depends on LIC's annual bonus declarations and may vary. For confirmed maturity amount, visit licindia.in.
This is not financial advice. Please consult a certified financial advisor before making insurance decisions.