1. What is LIC Maturity Value?

The Maturity Value (MV) of a Life Insurance Corporation (LIC) policy is the total amount payable to the policyholder at the end of the policy term. It consists of the Sum Assured plus any accrued bonuses.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( MV \) — Maturity Value (INR)
• \( \text{Sum Assured} \) — Base insurance amount (INR)
• \( \text{Bonus} \) — Accrued bonuses (INR)

Explanation: The maturity value is the sum of the guaranteed amount and any bonuses declared by LIC during the policy term.

3. Importance of Maturity Value Calculation

Details: Calculating the maturity value helps policyholders understand their expected returns and plan their finances accordingly.

4. Using the Calculator

Tips: Enter the Sum Assured and Bonus amounts in INR. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What determines the bonus amount?
A: Bonuses are declared annually by LIC based on the company's performance and the type of policy.

Q2: Are there different types of bonuses?
A: Yes, LIC offers Simple Reversionary Bonus, Terminal Bonus, and Interim Bonus depending on the policy.

Q3: Is the maturity value taxable?
A: Maturity proceeds are generally tax-free under Section 10(10D) of the Income Tax Act, subject to certain conditions.

Q4: Can I get partial withdrawals before maturity?
A: Some policies allow partial withdrawals or loans against the policy, but this varies by policy type.

Q5: How accurate is this calculator?
A: This provides a basic estimate. Actual maturity value may vary based on exact bonus declarations and policy terms.