Are you trying to figure out the exact maturity value of your LIC policy? It’s important to understand how much money you’ll get when your policy matures, so that you can plan its use accordingly. Fortunately, determining the maturity value of a life insurance policy is fairly straightforward. All it takes is a few simple calculations and some basic information about your specific policy.
Owning an LIC policy is a great choice for those looking to provide financial security for themselves or their loved ones. The maturity value of an LIC Policy is the total amount payable at the end of the policy term as per the terms and conditions. Depending on the type of policy, this value could be quite substantial, allowing you to obtain a return that could exceed what you would get in a traditional savings account.
In this post, we’ll cover exactly what goes into calculating the maturity value of an LIC policy and discuss how understanding this number can help inform financial decisions. Read on to know more.
Table of Contents
What Is Maturity Value Of An LIC Policy?
Maturity value is the amount your LIC policy will be worth when it reaches its maturity date. It is calculated by adding together the sum assured, bonus and other loyalty additions accrued over the term of the policy. The exact amount of maturity value depends on factors such as type of insurance plan, period for which premium has been paid, rate of bonuses declared by LIC, etc.
Your insurer will inform you about the estimated maturity value when you purchase the policy. In addition to this, you can also use online calculators available on various websites to get an idea of how much money you can expect from your LIC policy upon its maturity.
Once your LIC policy matures, you may choose to receive the entire amount in lump sum or in instalments. You can also opt for a combination of the two payment options. All these decisions should be taken after carefully assessing your long-term financial goals and requirements.
You may also consider investing the maturity proceeds to get regular income through annuity plans offered by LIC, which provides assured returns for life. This way you can ensure that your family does not face any financial difficulties in case of an emergency.
How Do You Calculate The Maturity Value Of An LIC Policy?
The maturity value of an LIC policy is calculated by multiplying the sum assured of the policy with a certain percentage as per the policy details. This rate depends on factors such as the duration of your policy, and the type of plan that you choose. For example, if you have taken a 20-year endowment plan with a sum insured of Rs. 10 lakhs, then at the time of maturity, you will be eligible for a matured amount equal to Rs. 30 lakhs (the sum insured multiplied by three).
The exact calculation of an LIC policy’s maturity value can vary depending upon different factors including bonus rates in case of participating policies or any additional riders or bonuses attached to it which could increase/decrease the amount. Generally, the maturity value of an LIC policy is known at the time of purchase and is mentioned in the policy document itself. It is advisable to consult with your LIC agent or check online for exact details regarding your policy’s maturity value calculation.
Apart from this, it is important to keep track of all other factors associated with your policy such as premium payments, bonus rates, etc., so that you are aware of exactly how much money you will get on maturity without any surprises. This can help in making financial decisions accordingly and ensure that you make the most out of your LIC policy.
Therefore, understanding the terms and conditions along with calculating the maturity value of an LIC policy before buying one can help you in investing and planning your finances wisely. This will help you to make the right decision and get maximum returns on your policy investment.
Conclusion
Maturity value of an LIC policy is the amount you will receive upon maturity of your policy. It is calculated by adding sum assured, bonus and other loyalty additions accrued over the term of the policy. By understanding its calculation beforehand, you can plan your finances better and get maximum returns on your investment. So make sure to do your research before buying any LIC policy to get the most out of it.
We hope that this article has helped you to know in detail about the maturity value of an LIC policy. If you have any further queries, please feel free to contact us. Thank you for reading.
