LIC Maturity Formula
Maturity Amount = Sum Assured + Accrued Bonus + Final Additional Bonus (FAB)
Components of Maturity Amount
- Sum Assured (SA) — The guaranteed base amount you chose when buying the policy. For endowment plans, 100% of SA is paid at maturity. For money back plans, only 40% is paid at maturity (remaining 60% is paid as survival benefits during the term).
- Simple Reversionary Bonus — LIC declares this bonus annually. It is calculated as a rate per ₹1,000 of SA. For example, at ₹50/1000 SA for a ₹10L policy over 20 years: Bonus = 50 × 1000 × 20 = ₹10,00,000.
- Final Additional Bonus (FAB) — A one-time bonus paid at maturity for policies that run the full term. FAB rates increase with longer policy terms.
- Loyalty Addition — Some plans like Jeevan Labh (736) offer additional loyalty additions on top of regular bonuses.
Maturity for Different Plan Types
- Endowment Plans (714, 715, 736): Full SA + all bonuses paid at maturity.
- Money Back Plans (720, 721): Survival benefits paid periodically during the term. Only remaining SA percentage + bonus at maturity.
- Whole Life Plans (745): SA + bonus paid at age 100. Annual survival benefit of 8% SA paid after premium paying term.
- Single Premium Plans (860, 869, 883): Guaranteed additions instead of annual bonuses.
Example: Jeevan Anand Maturity Calculation
For a ₹10,00,000 SA policy, age 25, 20-year term:
- Sum Assured at maturity: ₹10,00,000
- Accrued Bonus (₹50 × 1000 × 20): ₹10,00,000
- Final Additional Bonus: ~₹2,20,000
- Total Maturity: ~₹22,20,000
- Total premium paid: ~₹12,40,000
- Profit: ~₹9,80,000
Plus, Jeevan Anand provides life cover of ₹10L even after maturity — a unique benefit.