LIC Return Calculator
Know exactly how much your money is growing. Our advanced LIC Calculator provides a deep dive into your policy's financial performance.
Best LIC Calculator Tool
Our LIC Calculator helps you find your policy money. Use this LIC Calculator to check premiums and maturity easily.
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Analyze Your Policy Yield with the LIC Returns Calculator
Is your insurance policy a good investment? Use our LIC Calculator for returns to find the Internal Rate of Return (IRR) and absolute yield of your policy. Compare it with other financial instruments for 2026.
What is IRR?
Internal Rate of Return (IRR) is the actual percentage return on your policy, accounting for the timing of premiums. Use our LIC Calculator to find it.
Absolute Returns
The total profit earned over the entire term of the policy. The LIC Calculator compares your total premiums against the final maturity.
Tax-Free Yield
LIC returns are generally tax-free under Section 10(10D), making the effective return higher than taxable FDs. Calculate this with our LIC Calculator.
Return Benchmark 2026
How LIC policy returns compare with other traditional savings options.
| Investment Type | Avg. Return (IRR) | Tax Status | Risk Level |
|---|---|---|---|
| LIC Participating Plans | 5.5% - 6.5% | Tax-Free* | Zero Risk |
| Fixed Deposits (FD) | 6.0% - 7.5% | Taxable | Low Risk |
| PPF (Long Term) | 7.1% (Variable) | Tax-Free | Zero Risk |
* Tax-free status subject to conditions under Section 10(10D). Use our LIC Calculator for post-tax yield analysis.
The Power of Compounding in LIC
LIC policies work on the principle of simple reversionary bonuses that are added to the sum assured every year. Our LIC Calculator simulates this growth over 15, 20, or 25 years to show you the terminal value.
Effective Yield Formula
(Maturity Value / Total Premium Paid)^(1/n) - 1Pro Insight
For a true comparison, always calculate the 'Tax-Equivalent Yield'. Since LIC maturity is tax-free, a 6% return is equivalent to an 8.5% return on a taxable FD for someone in the 30% tax bracket.
Return Analysis FAQs
What is the average return on LIC plans?
Most traditional LIC endowment plans offer an IRR between 5% and 6.5%. You can check the specific yield for your plan using our LIC Calculator.
Is LIC better than FD for returns?
When you consider the life insurance cover and tax-free maturity, LIC often provides a better 'Net Effective Yield' than FDs. Verify this with our LIC Calculator comparison.
How does the bonus affect returns?
Bonuses are the primary engine of returns in LIC plans. Higher bonus rates declared by LIC lead to higher IRR. Our LIC Calculator uses 2026 projected rates.
What is the risk-free return?
LIC is backed by the Government of India, making its returns practically risk-free. Our LIC Calculator helps you plan your safe investments.