LIC Premium & Maturity Calculator

Checking if your current LIC policies will provide enough cash to cover major life milestones like your child's higher education or wedding.

Deciding whether to keep paying premiums on an underperforming policy or to surrender it and invest the cash elsewhere.

Planning your retirement nest egg by calculating exactly what your LIC maturity payouts will look like alongside your EPF and PPF.

Calculating the perfect Sum Assured you need so your family can live comfortably and pay off any outstanding home loans if you are no longer around.

What is the real difference between Jeevan Anand and Jeevan Labh?

Think of Jeevan Anand as the 'lifelong companion' and Jeevan Labh as the 'quick saver.' With Jeevan Anand, you pay premiums for the entire term, get a big payout at maturity, and keep a free life cover for the rest of your life. Jeevan Labh, on the other hand, lets you stop paying premiums early (like paying for 16 years on a 25-year plan) while your money keeps growing. Jeevan Labh is usually better if you want higher maturity returns, while Jeevan Anand is ideal for lifelong peace of mind.

What on earth are these 'bonuses' LIC keeps talking about?

LIC shares its profits with policyholders through bonuses. The main one is the Simple Reversionary Bonus, which is declared every year as a rate per ₹1,000 of your Sum Assured and added to your final payout. There is also the Final Additional Bonus (FAB), which is a special one-time bonus given to loyal policyholders who stay with their plans for 15 years or more. These bonuses are not guaranteed, but they are historically stable and make up a massive chunk of your final maturity check.

Will the government tax my money when the policy matures?

In most cases, your maturity payout is completely tax-free under Section 10(10D) of the Income Tax Act! However, there is a very important rule you must follow: your annual premium must not exceed 10% of your Sum Assured. For example, if your Sum Assured is ₹10 Lakhs, your yearly premium must be ₹1 Lakh or less. If you pay more than that, your final maturity amount will be taxed like normal income when you withdraw it.

Life got busy and I missed my premium payment. Is my policy dead?

Don't panic! LIC gives you a grace period to catch up on missed payments. You get 30 extra days for yearly, half-yearly, or quarterly plans, and 15 days if you pay monthly. If you miss this window, your policy will lapse, but you can still revive it within 5 years by paying the missed premiums plus a small interest fee. Just remember that if you let it lapse in the first three years, you might lose your cover and your premiums entirely.

Should I put my money in LIC or go for a tax-saving mutual fund (ELSS)?

This depends entirely on what you are trying to achieve. ELSS mutual funds are built for wealth creation, offering historically higher returns of 12% to 15% with a short 3-year lock-in, but they carry market risks and offer no insurance. Traditional LIC plans are low-risk savings tools that guarantee safety and life cover but yield lower returns of 5% to 6%. For the best of both worlds, many financial experts recommend buying a cheap, pure term insurance plan and investing your leftover savings into ELSS funds.

Can I borrow money against my LIC policy if there's an emergency?

Yes, you absolutely can! Once your traditional LIC policy has been active for at least 3 years and has built up a surrender value, it acts as excellent collateral. You can typically borrow up to 90% of your policy's surrender value at a very reasonable interest rate (usually around 9% to 11%). This is a fantastic emergency option because there is very little paperwork, and you do not have to cancel your policy to get the cash.

What's the difference between my 'Sum Assured' and what my family actually gets?

Think of the Sum Assured as the bare minimum guarantee. It is the face value of your policy that you chose on day one. If you pass away during the policy term, your family gets this Sum Assured plus any bonuses that have accumulated up to that date. In many modern LIC plans, the death benefit is designed to be even higher—often guaranteed to be at least 10 times your annual premium, ensuring your family is never left short-changed.

I want to cancel my old policy. Will I get all my money back?

Unfortunately, exiting a traditional insurance plan early is expensive. If you cancel (surrender) your policy before 3 years, you will likely get nothing back. After 3 years, you will get a 'Surrender Value,' but it is usually much lower than the total premiums you have paid. If you are close to maturity, it is almost always better to keep the policy active. If you cannot afford the premiums anymore, ask LIC to turn it into a 'Paid-Up' policy instead of surrendering it.