Lic Money Back Plan 75 Maturity Calculator

What is LIC Money Back Plan 75?

LIC Money Back Plan 75 is a non-linked, participating, individual, savings life insurance plan offered by the Life Insurance Corporation of India. It provides both life cover and savings benefits through regular premium payments.

The plan offers:

• Life cover up to ₹75,000
• Savings component that grows with time
• Flexible premium payment options
• Option to surrender the policy before maturity

The policy term for LIC Money Back Plan 75 is typically 15 years, with premiums payable annually. The plan provides a guaranteed maturity benefit along with a participating bonus.

How to Calculate Maturity Amount

The maturity amount of LIC Money Back Plan 75 is calculated based on the sum assured, premium payments, interest rate, and policy term. The formula used is:

Where:

• Sum Assured = ₹75,000 (fixed for this plan)
• Total Premiums = Annual Premium × Policy Term
• Interest Rate = Current applicable rate (varies by year)
• N = Policy Term in years

The calculator uses this formula to provide an estimate of your potential maturity amount based on the inputs you provide.

Key Formulas

1. Total Premiums Calculation

This formula calculates the total amount you will pay as premiums over the policy term.

2. Maturity Amount Calculation

This formula calculates the total amount you will receive at the end of the policy term, including both the sum assured and the accumulated premiums with interest.

3. Annual Premium Calculation

This formula calculates the annual premium amount needed to achieve the desired maturity amount.

Example Calculation

Let's calculate the maturity amount for a policy with the following details:

• Sum Assured: ₹75,000
• Annual Premium: ₹10,000
• Interest Rate: 5% (0.05)
• Policy Term: 15 years

Using the formulas:

1. Total Premiums = ₹10,000 × 15 = ₹150,000
2. Maturity Amount = (₹75,000 + ₹150,000) × (1 + 0.05)¹⁵
3. Maturity Amount = ₹225,000 × 2.176 ≈ ₹487,500

So, the estimated maturity amount for this example would be approximately ₹487,500.

Factors Affecting Returns

Several factors can affect the returns from LIC Money Back Plan 75:

• Premium Amount: Higher premiums lead to higher maturity amounts.
• Interest Rate: Higher interest rates increase the growth of your investment.
• Policy Term: Longer policy terms allow for more time for your investment to grow.
• Sum Assured: The fixed sum assured of ₹75,000 is part of the maturity amount.
• Premium Payment Frequency: Annual payments are standard, but some plans offer other options.

It's important to consider these factors when planning your investment in LIC Money Back Plan 75.