LIC Maturity Amount Calculator 2026: How to Calculate Your Exact Payout with Bonus Rates, FAB & Vested Bonuses

Understanding LIC Maturity Amount: Why It's Not Just Your Sum Assured

When your LIC policy matures after 15, 20, or 30 years of faithful premium payments, the amount you receive is almost always **higher than the sum assured** printed on your policy bond. This "extra" comes from bonuses accumulated over the policy term. But most policyholders have no idea how to calculate what they're actually entitled to — until they receive the money and wonder why it's different from what they expected.

In this guide, we break down exactly how LIC calculates your maturity amount, what bonus rates apply in 2026, and how you can predict your payout years in advance.

What Makes Up Your LIC Maturity Amount?

Your maturity amount consists of four potential components:

1. Basic Sum Assured (SA)

This is the guaranteed base amount mentioned in your policy document. For example, if you bought LIC Jeevan Anand with ₹10 lakh SA, this is your floor — you'll never receive less than this (plus bonuses) at maturity.

2. Reversionary Bonuses (Vested Bonuses)

LIC declares bonuses annually based on its surplus. These are called "Simple Reversionary Bonuses" because:

• They are declared as a **per-thousand of sum assured** rate
• They accumulate each year but are paid only at maturity or death
• Once declared and vested, they are **guaranteed** — even if future bonus rates drop

**Example**: If LIC declares ₹52 per thousand for 2025-26, and your SA is ₹10 lakh:

• Annual bonus = ₹10,00,000 ÷ 1000 × ₹52 = ₹52,000 per year
• Over 20 years (assuming same rate): ₹52,000 × 20 = ₹10,40,000

3. Final Addition Bonus (FAB)

This is a **one-time bonus** added at maturity for long-term policies. FAB is:

• Declared separately from annual bonuses
• Only available for policies that complete 15+ years (varies by plan)
• Higher for longer policy terms
• Not guaranteed — depends on LIC's financial performance in your maturity year

4. Loyalty Addition (LA)

Some plans offer additional loyalty benefits for policyholders who complete the full term. This is plan-specific and relatively newer — introduced in plans launched after 2015.

LIC Bonus Rates 2025-26: Current Declared Rates

LIC declares bonus rates annually in March/April for the financial year ending March 31. Here are the most recent declared rates for major plans:

**Important**: These rates are indicative and based on recent declarations. LIC may revise rates annually. Always check the official LIC website (licindia.in) for the latest declared rates.

How to Calculate Your Exact Maturity Amount: Step-by-Step

Step 1: Gather Your Policy Details

You need:

• **Sum Assured** (from policy bond)
• **Policy Term** (e.g., 20 years, 25 years)
• **Plan Name and Number** (e.g., Jeevan Anand Plan 915)
• **Date of Commencement** (to determine which bonus years apply)

Step 2: Find Bonus Rates for Each Year

LIC maintains historical bonus rate tables. For each year your policy was in force, find the declared rate for your plan.

**Where to find bonus rates:**

• LIC official website → Bonus Rates section
• Your annual policy statement (shows vested bonus for that year)
• Call LIC customer care: 022-6789 9870
• Visit your nearest LIC branch

Step 3: Calculate Accumulated Bonuses

**Formula:**

Total Bonus = Sum of (SA ÷ 1000 × Bonus Rate for each year)

**Example Calculation:**

• Plan: LIC Jeevan Anand, SA: ₹10,00,000, Term: 20 years (2006-2026)
• Assuming average bonus rate of ₹50 per ₹1000 across all years:
• Annual bonus: ₹10,00,000 ÷ 1000 × ₹50 = ₹50,000
• Total vested bonus: ₹50,000 × 20 = ₹10,00,000
• FAB (estimated): ₹10,00,000 ÷ 1000 × ₹45 = ₹4,50,000
• **Total Maturity Amount**: ₹10,00,000 (SA) + ₹10,00,000 (Bonus) + ₹4,50,000 (FAB) = **₹24,50,000**

Step 4: Subtract Any Outstanding Loans or Advances

If you've taken a loan against your policy and haven't fully repaid it:

• Outstanding loan principal is deducted from the maturity amount
• Accrued interest on the loan is also deducted
• This can significantly reduce your payout — always factor this in

Step 5: Account for Tax

Maturity proceeds from LIC policies are **tax-free under Section 10(10D)** of the Income Tax Act, provided:

• Premium paid does not exceed 10% of sum assured (for policies issued after April 1, 2012)
• Premium paid does not exceed 20% of sum assured (for policies issued before March 31, 2012)

If these conditions are not met, the maturity amount is taxable. Always verify with a tax advisor for high-value policies.

LIC Maturity Amount Calculator: Quick Reference Formula

For a quick estimate without looking up every year's bonus rate:

Estimated Maturity = SA + (SA × Average Bonus Rate × Term ÷ 1000) + FAB

**Rule of Thumb for 2026:**

• For a 20-year endowment policy: Maturity ≈ **1.8× to 2.2× of Sum Assured**
• For a 25-year endowment policy: Maturity ≈ **2.2× to 2.8× of Sum Assured**
• For a 30-year whole life policy: Maturity ≈ **2.5× to 3.5× of Sum Assured**

These are rough estimates. Actual amounts depend on the specific bonus rates declared each year during your policy term.

Why Your Maturity Amount Might Differ from Expectations

1. Bonus Rate Fluctuations

LIC's bonus rates have trended downward over the past decade due to lower investment returns and higher claim payouts. Policies that started in the 1990s saw rates of ₹80-90 per ₹1000; today's rates are closer to ₹48-55.

2. Paid-Up Value Reduction

If you stopped paying premiums after the minimum required years (3 years for most policies), the policy becomes "paid-up" and the sum assured is reduced. Bonuses stop accruing on the reduced SA.

3. Accidental Death Riders

If you opted for the Accidental Death Benefit rider and it was triggered, the additional sum assured is paid but the base policy may terminate (depending on plan terms).

4. Loan Deductions

As mentioned, any outstanding loan balance reduces your maturity payout. A ₹2 lakh loan taken 5 years ago could accrue ₹60,000+ in interest by maturity.

5. Interim Bonus

If your policy matures between bonus declaration dates, LIC adds an "interim bonus" to cover the partial year. This is usually at the same rate as the previous year's declaration.

How to Check Your Maturity Amount Before Policy Maturity

Option 1: LIC Online Portal

1. Visit licindia.in → "Policies" → "Bonus Information"
2. Enter your policy number
3. View accumulated bonus and estimated maturity value

Option 2: Annual Policy Statement

LIC sends annual statements showing:

• Sum assured
• Accumulated bonus to date
• Surrender value
• Loan outstanding
• Estimated maturity value (projected)

Option 3: LIC Branch Visit

Visit your servicing branch with your policy bond and ID proof. Request a "Maturity Value Estimation" — they can provide the most accurate figure based on current bonus rates.

Option 4: Use Our Estimation Method

Follow the step-by-step calculation above using your policy's historical bonus rates from LIC's official bonus rate table.

Tips to Maximize Your LIC Maturity Amount

1. **Never let your policy lapse** — you lose all bonuses if the policy lapses beyond the revival period
2. **Avoid taking loans against your policy** unless absolutely necessary
3. **Opt for the maximum affordable sum assured** — bonuses are proportional to SA
4. **Choose longer policy terms** — FAB rates are significantly higher for 25+ year policies
5. **Pay premiums on time** — delayed payments can affect bonus calculations in some plans
6. **Review your annual statements** — catch errors early, not at maturity

Frequently Asked Questions

Can I get my maturity amount early?

No. Maturity benefits are payable only on the exact maturity date. However, you can take a loan against your policy (up to 90% of surrender value) for interim liquidity needs.

What if I miss the maturity claim deadline?

There is no deadline to claim your maturity amount. LIC holds it indefinitely and pays interest on delayed claims. However, claiming promptly avoids paperwork complications.

Is the maturity amount the same for endowment and whole life plans?

No. Whole life plans (like LIC Jeevan Anand with whole life option) continue beyond the maturity date and may accumulate additional bonuses until the insured's death or age 100.

Do bonus rates change after they are declared?

Once a bonus is declared for a specific year, it is **guaranteed and vested**. Future rate changes only affect subsequent years.

Can I use the maturity amount calculator for ULIP plans?

No. ULIP (Unit Linked Insurance Plan) returns are market-linked and cannot be predicted using bonus rates. This calculator applies only to traditional endowment and whole life plans.

What happens to bonuses if I surrender the policy early?

If you surrender after 3+ years, you receive the **Special Surrender Value** which includes a portion of vested bonuses — but typically much less than what you'd get at full maturity.

The Bottom Line

Understanding how your LIC maturity amount is calculated empowers you to:

• Verify that LIC pays you the correct amount at maturity
• Plan your finances years in advance by estimating your corpus
• Make informed decisions about loans, riders, and policy continuation
• Spot discrepancies early and file grievances if needed

The key takeaway: **your maturity amount is NOT just your sum assured**. With 20-30 years of bonus accumulation, the actual payout can be 2-3 times your original SA. Know your numbers — it's your money, and you've earned every rupee of it through decades of disciplined premium payments.