Every week thousands of policyholders search "how much will I get when my LIC policy matures?" The good news: the calculation is simple enough to do on paper. This guide shows the exact three-component formula with worked examples.
The LIC Maturity Formula
Maturity Amount = Basic Sum Assured + Vested Simple Reversionary Bonus + Final Additional Bonus (FAB)
Component 1 — Basic Sum Assured (SA)
The guaranteed amount printed on your policy document. It's the anchor of every calculation.
Component 2 — Simple Reversionary Bonus (SRB)
Declared by LIC every year per ₹1000 of SA, plan-wise and term-wise. "Simple" means it does NOT compound — each year's bonus just adds up.
SRB = Bonus Rate × (SA ÷ 1000) × Number of Years
Component 3 — Final Additional Bonus (FAB)
A one-time loyalty bonus for policies that run long (usually 15+ years), also per ₹1000 SA. FAB rates rise sharply with term — long-term policyholders are rewarded.
Worked Example 1 — Endowment (Plan 914)
- SA ₹5,00,000 · Term 20 years · Bonus ₹42/1000 · FAB ₹100/1000
- SRB = 42 × 500 × 20 = ₹4,20,000
- FAB = 100 × 500 = ₹50,000
- Maturity = 5,00,000 + 4,20,000 + 50,000 = ₹9,70,000
Worked Example 2 — Money Back (Plan 920)
Money-back plans differ in ONE way: you already received 60% of SA during the term, so maturity pays only the remaining 40% of SA — but bonus accrues on the FULL SA for the full term.
- SA ₹10,00,000 · Term 20 · Bonus ₹39 · FAB ₹25
- Maturity = 40% × 10,00,000 + (39 × 1000 × 20) + (25 × 1000) = 4,00,000 + 7,80,000 + 25,000 = ₹12,05,000
- Plus ₹6,00,000 already received as cash-backs = total ₹18,05,000
Worked Example 3 — Jeevan Labh (Plan 936)
- SA ₹10,00,000 · Term 25 (pay 16) · Bonus ₹50 · FAB ₹450
- SRB = 50 × 1000 × 25 = ₹12,50,000
- FAB = 450 × 1000 = ₹4,50,000
- Maturity = ₹27,00,000 — against ~₹8.8 lakh total premiums!
Where to Find Your Bonus Rates
- Our updated LIC bonus rates history & plan-wise list
- LIC's annual bonus information statement
- LIC customer portal → policy status → vested bonus