Estimated Maturity Value
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LIC SIP Calculator
The LIC SIP Calculator estimates the maturity value of a Life Insurance Corporation policy paid in monthly instalments — enter your monthly premium, expected annual return, and policy tenure to see your estimated maturity value, total premiums paid, and estimated returns update live as you move the sliders. The year-wise table traces how your LIC corpus grows at every annual checkpoint, giving you a clear projection of your systematic investment plan in LIC before you lock in a premium amount. For more related tools, see the lumpsum calculator.
Results
Total Premiums Paid
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Estimated Returns
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Premium Breakdown
Results Table
| Year | Premiums Paid | Est. Returns | Total Value |
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What is a LIC SIP Calculator?
A LIC SIP calculator estimates the maturity value of a Life Insurance Corporation (LIC) endowment or money-back policy when premiums are paid monthly — treating each monthly premium payment as an instalment in a systematic investment plan. The LIC premium calculator SIP uses the Future Value of Annuity Due formula at a monthly compounding rate, which provides a theoretical projection of what your premiums would grow to given an assumed annual return. This is an estimation tool — actual LIC maturity values depend on the specific policy's bonus rates, sum assured, and policy terms declared by LIC each year.
The LIC maturity calculator defaults to a 6.5% annual return, which reflects a typical endowment plan return range. Traditional LIC plans generally deliver 5–7% effective returns after including accrued reversionary bonuses — lower than equity mutual funds but with the added benefit of life insurance cover bundled in. The year-wise corpus table shows how your premiums accumulate over the policy tenure, useful for comparing the LIC plan's projected maturity against alternative systematic investment plan options. Also explore the gold sip calculator for a related calculation.
How to Use the LIC SIP Calculator
The Life Insurance Corporation SIP calculator needs three inputs to generate your maturity projection:
- Monthly Premium (₹): Enter the monthly premium amount for your LIC policy — from ₹500 to ₹1,00,000. If you pay a quarterly or annual premium, divide by 3 or 12 respectively to get the monthly equivalent for this calculator.
- Expected Annual Return (%): Enter the effective annual return you expect from the LIC policy. Traditional endowment plans typically deliver 5–7%; ULIP plans (market-linked) can deliver higher but with market risk. Use 6–6.5% for a standard endowment plan estimate.
- Policy Tenure (Years): Enter the full term of your LIC policy — from 5 to 40 years.
The estimated maturity value, total premiums paid, and estimated returns update live as you adjust any slider. The year-wise LIC corpus table shows how the systematic investment plan of premium payments builds the projected corpus at every annual milestone. Also explore the gold etf sip calculator for a related calculation.
LIC SIP Returns vs Mutual Fund SIP
The core trade-off between an LIC endowment policy and a mutual fund SIP is return rate versus guarantee. LIC traditional plans offer a near-guaranteed maturity payout with life cover included, while mutual fund SIPs offer market-linked returns that have historically been significantly higher but with no guarantee:
| Factor | LIC Endowment SIP | Equity Mutual Fund SIP |
|---|---|---|
| Expected return | 5–7% effective | 10–15% CAGR (historical) |
| Life insurance cover | Yes — sum assured included | No — separate term plan needed |
| Return guarantee | Largely guaranteed (bonus-based) | No guarantee — market-linked |
| Liquidity | Low — surrender charges if exited early | High — redeem anytime (exit load period) |
| Tax on maturity | Exempt under Section 10(10D) if premium < 10% of sum assured | LTCG at 12.5% above ₹1 lakh |
For most investors, separating insurance from investment — buying a term plan for life cover and a mutual fund systematic investment plan for wealth creation — delivers both better protection and a higher maturity corpus than an LIC endowment policy at the same premium amount. Use the LIC SIP calculator and the SIP calculator side by side to compare the corpus each approach generates over your chosen tenure.
Frequently Asked Questions
What is a LIC SIP and how does it differ from a mutual fund SIP?
A LIC SIP refers to paying LIC insurance policy premiums in monthly instalments — essentially treating your monthly premium as a systematic investment plan contribution to an insurance-cum-investment product. A mutual fund SIP, by contrast, invests in market-linked securities with no insurance component. LIC endowment plans offer a guaranteed (bonus-based) maturity value with life cover, while mutual fund SIPs offer potentially higher but market-variable returns without life coverage. Many financial advisors recommend separating insurance (term plan) and investment (mutual fund SIP) for better outcomes on both dimensions.
What annual return should I use in the LIC SIP calculator?
For traditional LIC endowment plans and money-back plans, an effective annual return of 5–7% is a reasonable estimate after accounting for bonuses declared by LIC. The LIC maturity calculator defaults to 6.5%, which sits in the middle of this range. For LIC ULIPs (Unit-Linked Insurance Plans) that invest in equity or balanced funds, you may use higher return assumptions of 8–12%, but these carry market risk. Check your specific policy's illustration booklet for the declared maturity benefit at different return scenarios before using this calculator for financial planning.
Is LIC maturity amount tax-free?
Under Section 10(10D) of the Income Tax Act, LIC maturity proceeds are tax-free if the annual premium paid does not exceed 10% of the sum assured for policies issued after April 1, 2012 (or 20% of sum assured for policies before that date). However, for policies with annual premiums exceeding ₹5 lakh (introduced in Budget 2023), the maturity proceeds above the exemption threshold are taxable. Death benefits remain fully tax-exempt regardless of premium amount. Consult a tax advisor for the specific treatment applicable to your LIC policy.
Can I surrender an LIC policy and move to a mutual fund SIP?
Yes, you can surrender an LIC policy after it acquires surrender value — typically after paying premiums for at least 2–3 years. The surrender value will be lower than total premiums paid in the early years. Before surrendering, calculate the surrender value versus the projected maturity benefit, and compare both against what a mutual fund systematic investment plan at the same monthly premium would deliver over the remaining tenure. If the policy still has many years to run and the surrender value is small, it may be better to make it a paid-up policy rather than surrendering — reducing the sum assured while maintaining the policy without further premium payments.