Formula
P = (T − R) × S / 1000
I = P × c
T = A / (ä × (1 − λ))
M = G + q × T × Σt=1n min(t, k) × S / 1000
P × Σt=0k−1 (1 + r)−t = Σt Ct (1 + r)−t + M (1 + r)−n
where
- P
- annual premium
- T
- tabular premium per ₹1,000 of sum assured, for your age, term and premium paying term
- R
- high sum assured rebate, ₹ per ₹1,000, from this plan's table (nil on smaller policies)
- S
- Basic Sum Assured
- I
- each instalment
- c
- instalment as a share of the annual premium: 1 yearly, 0.509 half-yearly, 0.2568 quarterly or 0.0861 monthly
- A
- present value, per ₹1,000 of sum assured, of everything the policy pays: death cover, survival benefits and maturity
- ä
- present value of ₹1 a year, paid at the start of each year of the premium paying term while you are alive
- λ
- expense loading, 13%
- M
- maturity amount
- G
- guaranteed maturity sum, 100% of S (the rest is paid out earlier as survival benefits)
- q
- guaranteed addition rate, 7% of the tabular premiums paid to date, credited at the end of each policy year
- min(t, k)
- the number of yearly premiums paid by the end of year t
- Ct
- survival benefit at the end of year t: 7.5% of S in year 2, 7.5% of S in year 4, 7.5% of S in year 6, 7.5% of S in year 8, 7.5% of S in year 10, 7.5% of S in year 12, 7.5% of S in year 14, 7.5% of S in year 16, 7.5% of S in year 18, 7.5% of S in year 20, 7.5% of S in year 22, 7.5% of S in year 24
- r
- annualised return: the rate that makes both sides equal
- n
- policy term, in years
- k
- premium paying term, in years
*Source LIC Bima Lakshmi brochure (PDF)
In short (tl;dr)
Bima Lakshmi is a 25-year, non-participating savings plan sold only to women. Premiums run for 7 to 15 years, every premium paid earns a guaranteed addition each year, and the full sum assured is paid at maturity on top of the money back already received.
Worked example: at 35, ₹5,00,000 of cover over 25 years costs ₹90,850 a year for 13 years and is projected to pay ₹20,70,796 at maturity, a return of 4.75% a year.
What is LIC Bima Lakshmi?
Bima Lakshmi (Plan 881) is open to women aged 18 to 50. The policy term is always 25 years and premiums are paid for any period from 7 to 15 years. The minimum Basic Sum Assured is ₹2 lakh, in multiples of ₹10,000, with no upper limit.
The guaranteed additions work differently from LIC's other non-par plans. Instead of a fixed amount per ₹1,000 of sum assured, the policy earns 7% of all the tabular annual premiums paid so far, at the end of every policy year for the full 25 years. The addition grows each year while premiums are being paid and then stays level. In LIC's own illustration of a ₹2 lakh, 10-year-pay policy at age 35 under Option B, the additions reach ₹6,44,889 by maturity.
At the start the buyer picks one of three survival options, which cannot be changed later. Option A pays 50% of the sum assured once, at the end of the premium paying term. Option B pays 7.5% every two years from year 2 to year 24. Option C pays 15% every four years from year 4 to year 24. Under all three, the full Basic Sum Assured plus all the additions is paid at maturity. This calculator prices Option B.
Key features
- Sold only to women, entry age 18 to 50
- Fixed 25-year term with premiums for any period from 7 to 15 years
- Guaranteed addition every year of 7% of the tabular premiums paid so far
- Three money back options: 50% once, 7.5% every two years, or 15% every four years
- Full Basic Sum Assured plus all additions paid at maturity
- Each survival benefit can be deferred for five years at a declared interest rate
- Higher addition rates for larger policies, online purchase and existing LIC policyholders
Bima Lakshmi at a glance
- Plan number
- 881
- Category
- Endowment
- Entry age
- 18 to 50 years
- Policy term
- 25 years
- Premium paying term
- 7, 8, 9, 10, 11, 12, 13, 14, 15 years
- Sum assured
- ₹2 Lakh and above
- Maximum maturity age
- 75 years
- UIN
- 512N389V01
We checked the plan number and UIN above against LIC's own page for this plan on 2026-10-02. Check it on licindia.in
What are the benefits of LIC Bima Lakshmi?
What does LIC Bima Lakshmi pay on death?
Sum Assured on Death, the higher of the Basic Sum Assured and 10 times the tabular annual premium (adjusted for the payment mode), plus the guaranteed additions accrued to the date of death, and never less than 105% of the premiums paid. LIC's own illustrations show no deduction for survival benefits already paid.
What do you get at maturity?
The full Basic Sum Assured plus all guaranteed additions accrued over the 25 years. Survival benefits paid earlier under the chosen option are not deducted.
Who is LIC Bima Lakshmi for?
A woman who wants to finish paying within 7 to 15 years, take some money back along the way, and know the maturity amount on the day the policy is issued.
What should you watch out for?
The three options cost different amounts and cannot be switched after issue. Option A is the cheapest because it pays out only once; in LIC's sample premiums at age 35, B costs 18% more than A on a 7-year premium term and 50% more on a 15-year one.
What does LIC Bima Lakshmi cost?
Worked out on a 25-year term with premiums paid for 13 years. Change any of these in the calculator above for your own figures.
By sum assured, at age 35
| Sum assured | Premium a year | Total paid in | Projected maturity |
|---|---|---|---|
| ₹5,00,000 | ₹90,850 | ₹11,81,050 | ₹20,70,796 |
| ₹10,00,000 | ₹1,81,700 | ₹23,62,100 | ₹41,41,593 |
| ₹25,00,000 | ₹4,54,250 | ₹59,05,250 | ₹1,03,53,982 |
Premiums are modelled on this plan's own tabular rates. The additions on this plan are contractual rather than declared, so unlike a with-profits plan the figure does not rest on a bonus declaration.
By age, on ₹5,00,000 of cover
Sum assured moves the premium almost in a straight line, so the table above is easy to read across. Age does not, and it is the input people most often want to test before filling anything in.
| Age at entry | Premium a year | Total paid in | Projected maturity | Age when it pays |
|---|---|---|---|---|
| 25 years | ₹89,565 | ₹11,64,349 | ₹20,48,585 | 50 |
| 30 years | ₹89,981 | ₹11,69,750 | ₹20,55,768 | 55 |
| 40 years | ₹92,573 | ₹12,03,455 | ₹21,00,595 | 65 |
| 50 years | ₹1,02,193 | ₹13,28,508 | ₹22,66,915 | 75 |
The premium barely moves across the rows. Mortality is a small part of a savings premium and the savings part is the same at any age. What age changes is the last column: when the money arrives, and how old you are when it does.
LIC's own sample premium, from the brochure
From the sourceNot modelled: this is the table LIC prints in its own brochure (Sales brochure, section 7 Sample Illustrative Premium, Option B, age 35, offline), at ₹2,00,000 of cover, the sum assured LIC chose to illustrate. Everywhere else on this page the premium is worked out for the sum assured you enter; here it is fixed at that figure, because that is what LIC published.
These figures are taken from the document linked below. Check them there.
| Age at entry | 7 years | 8 years | 9 years | 10 years | 11 years | 12 years | 13 years | 14 years | 15 years |
|---|---|---|---|---|---|---|---|---|---|
| 35 | ₹56,700 | ₹50,190 | ₹45,350 | ₹44,940 | ₹41,470 | ₹38,660 | ₹36,340 | ₹34,390 | ₹33,780 |
Priced on ₹2,00,000 of cover, exclusive of taxes, standard lives. Our own model is anchored on the age 35, 25-year term, 13-year premium term cell in this table; the other cells are the real test of the model, and the editorial and methodology policy publishes how far off they run.editorial and methodology policy publishes how far off they run.
Where the maturity figure comes from
Taken apart, on the ₹5,00,000 policy in the first table. Every line is contractual on this plan: the additions are written into the policy at a stated rate rather than declared each year, so none of this depends on how LIC's investments do.
- Basic sum assured (guaranteed)
- ₹5,00,000
- Guaranteed additions
- ₹15,70,796
- Paid at maturity
- ₹20,70,796
- Income paid before then, 12 payments of ₹37,500 from year 2
- ₹4,50,000
- Return a year on the premiums
- 4.75%
When does LIC Bima Lakshmi pay for itself?
The grey line is what you have paid in by each policy year. The yellow line is what the policy has paid back by then. They cross in year 25, which is the point the policy has returned everything it cost.
That return counts everything the policy pays back, income included, against everything you put in, after the cost of the life cover it carried for 25 years. It is not a market return. On this plan the figures behind it are contractual, so it moves only with the age and term you enter.
Who can take LIC Bima Lakshmi?
Age to start
- Minimum
- 18 years
- Maximum
- 50 years
Policy term
- Fixed term
- 25 years
Age when the policy matures
- Maximum
- 75 years
Your age at entry plus the policy term cannot come to more than 75.
Years you pay for
- Minimum
- 7 years
- Maximum
- 15 years
Any whole number of years from 7 to 15.
Sum assured
- Minimum
- ₹2,00,000
- Maximum
- No limit set by LIC
LIC caps this by what underwriting allows rather than with a printed figure. This calculator accepts up to ₹5 Crore.
The calculator applies every limit above. LIC sets them out under "Eligibility Conditions and Other Restrictions" on page 3 of the Bima Lakshmi sales brochure, linked in the form above.
What Bima Lakshmi pays if you surrender
The policy can be surrendered after the first policy year once one full year's premium is paid, and acquires a Guaranteed Surrender Value after two full years' premiums. The GSV is total premiums paid times 30% in year 2, 35% in year 3, 50% in years 4 to 7, rising to 74.12% in year 23 and 90% in the last two years, less survival benefits already paid, plus accrued guaranteed additions at their own factor (15.28% in year 3 rising to 35% in year 25). LIC pays the higher of this and the Special Surrender Value.
Taken from the plan's own brochure rather than modelled, which is why there is no table here: LIC states the percentages for this plan outright, and a percentage of a number you already know needs no calculator.
Tax on LIC Bima Lakshmi
Two provisions do the work, and both turn on the size of the premium rather than on the plan. The Income-tax Act, 2025 renumbered both from 1 April 2026 without changing the rules, so each is given here under its old number and its new one.
Section 80C, now Section 123, on what you pay in
Premiums count towards the ₹1.5 lakh limit, in the year they are paid, if you are on the old regime. The deduction is restricted where the annual premium is more than 10% of the sum assured.
Section 10(10D), now Schedule II, on what comes back
Maturity proceeds are exempt where the premium in every year stays inside 10% of the sum assured, and, for a policy issued on or after 1 April 2023, where the premiums on all such policies together stay inside ₹5 lakh a year. Death proceeds are exempt either way.
Where this policy sits
The ₹5,00,000 policy priced above costs ₹90,850 a year, which is 18.2% of the sum assured. That is above the 10% test, so both provisions are restricted for it. A larger sum assured moves the ratio down.
GST
Nil. Individual life insurance premiums have been exempt since 22 September 2025, so the instalment the calculator shows is the amount that leaves your account.
None of this is tax advice. Which regime you are on, what else you hold and when the policy was issued all change the answer, so confirm your own position with a tax adviser before you rely on it.
How this calculator works
Bima Lakshmi is priced here on its own parameters, not a generic formula. We build the plan's full cash-flow schedule, meaning the death benefit in each policy year, every survival payout and the maturity value, then discount it on a basis calibrated to a reference premium for this plan. That reference is checked two ways: against LIC's published tabular rate, and against the return the plan's own benefits imply for the policyholder.
- Reference premium
- ₹181.70 per ₹1,000 at age 35, 25-year term, 13-year premium term
- Discount basis
- 5.82% a year, on LIC (2012-14) Ultimate mortality
- Guaranteed additions
- 7% of the tabular premiums paid to date, added at the end of every policy year for the whole term.
- GST
- Nil. Individual life insurance premiums have been exempt from GST since 22 September 2025, so the instalments shown are what you actually pay.
Bonus rates are declared annually and are not guaranteed; only the sum assured and any contractual guaranteed additions are. Read our editorial and methodology policyfor the full basis, and confirm every figure with LIC before you buy.
Check the source:Bima Lakshmi on licindia.inLIC valuation and bonus declarationsIRDAI regulations
How LIC Bima Lakshmi compares
The plans people weigh this one against, and what separates each from it.
| Plan | Policy term | You pay for | Cover from | What is different |
|---|---|---|---|---|
| Bima LakshmiNo. 881 · this page | 25 years | 7, 8, 9, 10, 11, 12, 13, 14, 15 years | ₹2 Lakh | A 25-year savings plan for women: guaranteed additions on every premium paid, money back on a schedule you choose, and the full sum assured at maturity. |
| Bima RatnaNo. 764 | 15, 20, 25 years | Term minus 4 years | ₹5 Lakh | Guaranteed additions that step up over time, plus two payouts before maturity. |
| Bima JyotiNo. 760 | 15 to 20 years | Term minus 5 years | ₹1 Lakh | Non-participating endowment with a guaranteed addition of ₹50 per ₹1000 every year. |
| New Money Back Plan - 20 YearsNo. 720 | 20 years | 15 years | ₹2 Lakh | 20% of the sum assured back in years 5, 10 and 15, and the rest at maturity. |
| Jeevan LakshyaNo. 733 | 13 to 25 years | Term minus 3 years | ₹2 Lakh | Endowment built around a family income benefit if the parent dies. |
To price several of these against each other on the same age and sum assured, the LIC premium calculator runs every plan on the site through the same engine and puts the answers in one table.
LIC Bima Lakshmi: frequently asked questions
Who can buy LIC Bima Lakshmi?
Women aged 18 (last birthday) to 50 (nearer birthday). The policy term is 25 years, premiums are paid for 7 to 15 years, and the minimum Basic Sum Assured is ₹2,00,000.
How are the guaranteed additions in Bima Lakshmi worked out?
At the end of each policy year the policy earns 7% of the total tabular annual premium paid up to then. On a ₹34,480 yearly premium that is ₹2,414 after the first year, ₹4,827 after the second, and so on until premiums stop, after which it stays at 7% of the full amount paid every year to maturity.
What are the three options in Bima Lakshmi?
Option A pays 50% of the Basic Sum Assured at the end of the premium paying term. Option B pays 7.5% at the end of every second year from year 2 to year 24, twelve payments in all. Option C pays 15% at the end of years 4, 8, 12, 16, 20 and 24. All three pay the full sum assured plus additions at maturity, and the choice is made at proposal and cannot be changed.
What is the premium for Bima Lakshmi?
LIC's brochure prints the premium for ₹2 lakh at age 35. For a 10-year premium term it is ₹34,480 a year under Option A, ₹44,940 under Option B and ₹43,190 under Option C. For 15 years it is ₹22,590, ₹33,780 and ₹32,480. Taxes are extra where they apply.
How much does Bima Lakshmi pay at maturity?
In LIC's illustration for a 35-year-old woman, ₹2 lakh sum assured, 10-year premium term: ₹6,94,788 at maturity under Option A after ₹1,00,000 in year 10, and ₹8,44,889 under Option B after twelve payments of ₹15,000. Both are guaranteed.
Is there an extra benefit for larger policies or online purchase?
Yes, both raise the guaranteed addition rate above 7%. A Basic Sum Assured of ₹5 lakh or more adds 0.25 to 0.50 percentage points depending on size and premium term. Buying online without an agent adds 0.75, 1.25 or 1.50 points for premium terms of 7 to 9, 10 to 14 and 15 years. Existing LIC policyholders and nominees of deceased policyholders get 0.05 or 0.10 points. The calculator on this page uses the base 7% and leaves these out.
Can I defer the Bima Lakshmi survival benefit?
Yes, for five years from its due date, once under Option A and for up to two payments under Options B and C, provided at least five years of the policy term remain and no loan is outstanding. The deferred amount accumulates at the 5-year G-Sec yield less 50 basis points, 6.09% for benefits falling due from 1 May 2025 to 30 April 2026.
Can the Bima Lakshmi maturity or death benefit be paid in instalments?
Yes. Under the Settlement Option the maturity amount can be taken over 5, 10 or 15 years, opted at least three months before maturity, and the death benefit can be set up the same way during the policy term. The minimum instalment is ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly or ₹50,000 yearly.
Spot something wrong?
If a figure on this page disagrees with an LIC premium notice, bonus statement or benefit illustration, tell us and we will check it against the brochure. Anything else you think this page gets wrong is just as welcome.
Related calculators
Plans people usually weigh up against Bima Lakshmi before deciding.
Bima Ratna
No. 764Guaranteed additions that step up over time, plus two payouts before maturity.
Open calculatorBima Jyoti
No. 760Non-participating endowment with a guaranteed addition of ₹50 per ₹1000 every year.
Open calculatorNew Money Back Plan - 20 Years
No. 72020% of the sum assured back in years 5, 10 and 15, and the rest at maturity.
Open calculatorJeevan Lakshya
No. 733Endowment built around a family income benefit if the parent dies.
Open calculator