What Is LIC Maturity Value and Why It Matters?

If all premiums have been paid and the policy has not been surrendered, the total amount you receive from your LIC policy at the end of the policy term is known as the LIC maturity value.

Usually, it consists of:

Sum Assured (SA): The sum that LIC guarantees.

Bonus: Determined annually by LIC based on performance.

A one-time bonus for long-term policies is the Final Additional Bonus (FAB).

What makes it significant?

Your return on investment is this: It’s the sum you’ll get after years of premium payments. Financial planning: Assists in making plans for future requirements, such as retirement, schooling, or a significant purchase.

It is not the same as surrender value, which is the amount you receive if you terminate the policy early. When you finish the entire term, you receive maturity value.

How to Calculate LIC Maturity Amount Manually?

You can calculate your LIC maturity amount using a simple formula if you have access to your policy details.

Here’s the basic structure:

Maturity Value = Sum Assured + Bonus + Final Additional Bonus

The Best Example is:

Let’s assume the following:

• Sum Assured: ₹5,00,000
• Policy Term: 20 years
• Bonus Rate: ₹45 per ₹1,000 Sum Assured (declared annually)
• Final Additional Bonus (FAB): ₹25,000

👉 Manual Calculation is:

1. Bonus = ₹5,00,000 ÷ 1,000 × ₹45 × 20 years
2. = ₹5,00,000 × 0.045 × 20
3. = ₹4,50,000
4. Maturity Value = ₹5,00,000 (Sum Assured)
   • ₹4,50,000 (Bonus)
   • ₹25,000 (FAB)
   • = ₹9,75,000

So, the policyholder will receive ₹9,75,000 at the end of the 20-year term.

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🔍 Quick Break! Let’s Play “Maturity Match” 🎯

Can you guess your LIC maturity amount before using the calculator?

👉 Close your eyes.
👉 Think of a number.
👉 Now try our LIC Maturity Calculator (2025) and see how close you were!
Spoiler Alert: Our tool wins every time! 😉

💡 Fun Fact: Over 80% of policyholders don’t know their exact maturity value — now you’re not one of them!

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LIC Maturity Calculator Formula Explained with Real Examples

LIC provides online calculators via its apps or website. These tools simplify your work while using the same formula.

Using common policy terminology, here is an actual example:

For instance:

• 15-year policy term
• ₹3,00,000 is the sum assured.
• Bonus per year: ₹40 for every ₹1,000
• Last Extra Bonus: ₹15,000.

The Main Formula Here:

Maturity = SA + (SA / 1000 × Bonus Rate × Term) + FAB Maturity = ₹3,00,000 + (₹3,00,000 / 1000 × ₹40 × 15) + ₹15,000 = ₹3,00,000 + ₹1,80,000 + ₹15,000 = ₹4,95,000

Final Maturity Value = ₹4,95,000

(This is a rough estimate, and actual values may vary depending on LIC’s declared bonus for that year.)

How to Use LIC Maturity Calculator Correctly (User Guide + Tips)

It’s simple to use the LIC maturity calculator, but to obtain a trustworthy estimate, enter values accurately.

Step-by-Step Guide:

1. Enter your policy details:
   1. Policy term
   2. Policy start date
   3. Sum assured
   4. Premium frequency (monthly/quarterly/yearly)
2. Check for bonus rates:
   1. Use LIC’s latest bonus rates or assume a general average (₹40–₹50 per ₹1,000 SA annually).
3. Final Bonus (FAB):
   • Applicable mostly for terms over 15 years. You can check FAB charts online or assume a range between ₹10,000–₹30,000.

Tips Here:

• Advice: Always refer to LIC’s official bonus announcements.
• Riders may not be included in the maturity value if your policy has any.
• Use your original policy documents instead of entering random values.

When Will I Get My LIC Maturity Amount? (Payment Timeline)

Maturity claims are typically resolved by LIC on or after the policy’s maturity date.

This is how it operates:

Two to three months prior to maturity, the policyholder receives a notification letter from LIC.

Submission of Documents: You must send in your original policy document, identification, and NEFT information.

Claim Settlement: Following document verification, payment is typically processed in 7–10 working days.

✅ If you need assistance, you can also go to the closest LIC branch.

Now Check Your LIC Maturity Value

👉 Read More: LIC Maturity Value vs Surrender Value – What’s the Difference?

FAQs – LIC Maturity Value (Simple Answers)