Finance · Free tool
LIC Endowment Maturity
Maturity = Sum Assured + (Reversionary Bonus per ₹1000 SA × tenure × SA / 1000) + Final Addition Bonus. Bonus rates vary by plan; ₹40–50/₹1000/yr is typical for traditional plans.
Check your policy bonus chart. ~₹45 typical.
0 for short tenures, 100-200 for 20+ years.
Effective return is typically 4-6% — same money in PPF (7.1%) or ELSS (~12%) usually beats it.
FAQ
Why are LIC endowment returns only 4-6%?
A large portion of your premium goes to mortality cover and agent commission (5-15% in early years). Only the residual is invested — and traditional plans invest mostly in govt bonds (low return). Term + MF separately is more efficient.
Are LIC bonuses guaranteed?
Reversionary bonus is declared annually and once added, becomes guaranteed. Final Addition Bonus (FAB) is at maturity, not guaranteed in advance — but historically paid for long-tenure plans.
Can I surrender my LIC policy mid-way?
Yes after 3 years. Surrender value is ~30% of premiums paid for the first 3 years; rises with tenure. Usually you lose money — sometimes better to make it paid-up (stop premiums but keep cover).