LIC Calculator: premium, maturity and surrender value

How LIC premiums are actually worked out

Every LIC plan has a premium table. For each combination of age at entry, policy term and premium paying term, the table gives a rate per ₹1,000 of sum assured. A rate of ₹57.40 means a ₹5,00,000 policy costs 500 × ₹57.40 = ₹28,700 a year before rebates. That single number is the whole calculation — everything else is an adjustment to it.

Two rebates come off. The high sum assured rebate reduces the rate per thousand once the sum assured crosses a threshold, typically ₹2 lakh and again at ₹5 lakh, because LIC's per-policy costs do not rise with the size of the policy. The mode rebate is 2% for paying yearly and 1% for half-yearly; quarterly and monthly attract no rebate, which is why paying yearly is always the cheapest option.

What varies between plans is the benefit being funded. An endowment funds a lump sum at a fixed date. A money back plan funds that lump sum and periodic payouts along the way, while still carrying the full death risk — so it costs more per ₹1,000. Jeevan Anand funds a lifetime of cover after maturity. Jeevan Umang funds fifty years of annual income. A term plan funds nothing but the death benefit, which is why it costs a fraction of the others.

What determines your maturity amount

For a participating plan, the maturity value has three parts. The Basic Sum Assured is guaranteed and written into the policy. The simple reversionary bonus is declared each year as a rupee amount per ₹1,000 of sum assured — currently ₹41 to ₹49 depending on plan and term — and once declared it vests permanently. The Final Additional Bonus is a one-off terminal bonus paid only on longer policies, and it climbs sharply with duration: a 20-year policy might earn ₹90 per ₹1,000 while a 30-year policy earns five times that.

Only the first part is guaranteed. Bonus rates are set from LIC's annual valuation surplus and can move in either direction, which is why every projection on this site separates the guaranteed amount from the bonus. Non-participating plans such as Bima Jyoti, Jeevan Azad and Bima Ratna avoid the uncertainty altogether by crediting a contractual guaranteed addition instead — a smaller number, but one you can count on.

Why these calculators differ from most LIC calculators online

Most LIC calculator sites run one endowment formula behind every page and change the heading. That produces the same premium for Jeevan Anand and Jeevan Labh at the same age and term, which is wrong — Jeevan Labh compresses the same benefit into fewer premiums and costs about a third more per year.

Here, each plan carries its own configuration: its entry age and term limits, its premium paying term rule, its declared bonus rates, its survival payout schedule, its rebate bands. The engine builds the plan's actual cash-flow schedule and discounts it on a basis calibrated to that plan's own reference premium. You can see that reference and the discount rate on every plan page, under "How this calculator works".