How LIC Maturity Amount is Calculated
Every LIC participating (with-profit) policy matures with three components:
- Basic Sum Assured — the guaranteed amount you chose at purchase.
- Vested Simple Reversionary Bonus — declared yearly per ₹1000 of SA, accumulated (not compounded) over the term.
- Final Additional Bonus (FAB) — a one-time loyalty addition for long-duration policies.
Maturity = Sum Assured + (Bonus Rate × SA ÷ 1000 × Term) + (FAB Rate × SA ÷ 1000)
Example: ₹5,00,000 policy, 20-year term, bonus ₹45, FAB ₹100
- Sum Assured = ₹5,00,000
- Bonus = 45 × 500 × 20 = ₹4,50,000
- FAB = 100 × 500 = ₹50,000
- Total Maturity = ₹10,00,000
Want the full method with plan-wise examples? Read How to Calculate LIC Maturity Amount — Step-by-Step Guide.