Sum Assured (INR) Enter the basic insured amount (e.g., 500000)

Policy Term (years) 10 years 15 years 20 years 25 years Select the duration of the policy

Annual Premium (INR) Enter the yearly premium amount (e.g., 25000)

Bonus Rate (INR per 1000 SA) Enter the yearly bonus rate per 1000 SA (e.g., 45)

Quick Examples:

Medium-term Plan High Sum Assured

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This calculator is for educational purposes only. It is not intended to provide financial advice. Consult a financial advisor for personalized guidance.

What Is Maturity Value

Maturity Value is the total amount of money you may receive from the insurance company when your policy ends. It includes the part of the insured amount that has not been paid out earlier, plus any bonuses the company has added over the years. This amount is often used for major future expenses like a child's higher education or marriage.

How Maturity Value Is Calculated

Formula

This calculation works by first adding up all the bonuses earned each year. Then, it subtracts any survival benefits you received during the policy term from the total Sum Assured. Finally, it adds the remaining part of the Sum Assured to the total bonus. This gives you the estimated lump sum amount due at the very end of the policy.

Why Maturity Value Matters

Knowing the maturity value helps families see how much money might be available in the future. It assists in planning for big life events and ensures that savings are on track to meet specific goals.

Why Understanding Net Returns Is Important for Financial Planning

If you do not understand the maturity value, you might think the payout is higher than it actually is. Since money is paid out during the term, the final check is smaller than the full Sum Assured. Understanding this helps avoid shortfalls when it is time to pay for college or other large costs.

For Education Planning

When saving for a child's education, knowing the maturity value helps parents determine if the savings will be enough. It may assist in deciding if extra savings are needed to cover tuition fees and living expenses later on.

LIC Children’s Money Back Plan vs. Standard Endowment Plan

A Children’s Money Back Plan pays out amounts at specific times during the policy, which can help with school fees. A Standard Endowment Plan usually keeps all the money until the very end. The Money Back option is generally chosen when cash flow is needed at different stages of a child's growth.