LIC Return Calculator 2026 (XIRR / IRR)

Calculate the actual annualized rate of return (XIRR yield) on your LIC policy investment. Compare tax-free returns with bank FDs, PPF, and Mutual Fund SIPs. Updated for 2026.

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Investment Parameters

Annual Premium (वार्षिक प्रीमियम)₹25,000

₹2,000₹2,00,000

Policy Term (अवधि)20 Years

10 Years35 Years

Sum Assured (बीमा राशि)₹5,00,000

₹50,000₹50,00,000

Plan Bonus Rate

Terminal Bonus

Annualized Yield Analysis

Total Investment

₹5,00,000

Interest Profit

₹5,40,000

Actual Annual Return Rate (XIRR Yield)

6.55%

This policy earns a compound annual return equivalent to a banking interest rate of 6.55% per annum.

⚖️ Investment Yield Comparisons (For Same Cash Flows)

See what the same annual premium of ₹25,000 invested for 20 years would grow to in alternative savings schemes.

LIC Policy return rate yield comparison with other investments
Investment Tool	Maturity Value	Annual Yield (XIRR)	Tax Exemption Status
LIC Policy (Your Estimate)	₹10,40,000	6.55%	Tax-Free 10(10D)
Post-Tax Bank FD (6.5% gross)	₹8,24,278	4.55%	Fully Taxable (Slab)
Public Provident Fund (PPF)	₹11,09,715	7.10%	100% Tax-Free (EEE)
Mutual Fund SIP (Net of 12.5% LTCG)	₹16,74,926	10.50%	Taxed above ₹1.25L profit

Want a better life cover than traditional LIC policies?

Traditional plans offer 5-6% returns with low life cover. Compare pure Term Insurance plans starting from just ₹440/month for a ₹1 Crore cover.

Compare Term Plans

LIC Return Calculator

Use this tool to calculate the exact XIRR and IRR return percentage on your LIC policy based on your premium inputs and expected maturity value. This calculator requires JavaScript to function.

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What is the average return rate (IRR) on an LIC policy?

The average compound annual return (XIRR/IRR) on traditional LIC endowment plans like Jeevan Anand is between 5.2% and 5.7%. While nominal interest rates of FDs are higher (6.5% - 7.1%), FDs are fully taxable, whereas LIC payouts are tax-free under Section 10(10D).

How to Calculate the Real Yield of Your Policy

Many policyholders confuse total payout value with return rate. For example, paying ₹25,000 annually for 20 years (total: ₹5 Lakhs) and receiving a maturity check of ₹13 Lakhs sounds like a massive profit. However, because the money is locked in for 20 years, the compound annual growth rate (XIRR) is only **5.61%**.

By running an XIRR calculation, you can evaluate if your long-term capital is working efficiently. While capital safety is vital, high inflation can erode purchasing power if your savings yield less than 6% annually.

हिं

एलआईसी रिटर्न (XIRR) कैलकुलेटर — LIC Return in Hindi

एलआईसी पॉलिसी रिटर्न कैलकुलेटर (LIC Policy Return Calculator) 2026. अपने पॉलिसी पर मिलने वाले वास्तविक वार्षिक चक्रवृद्धि ब्याज दर (XIRR/IRR) की गणना करें।\n\nज्यादातर पारंपरिक एलआईसी नीतियां (जैसे जीवन आनंद, न्यू एंडोमेंट) 5% से 5.8% वार्षिक की चक्रवृद्धि दर पर रिटर्न प्रदान करती हैं। जबकि बैंक एफडी पर 6.5% से 7% ब्याज मिलता है, एफडी का ब्याज कर योग्य होता है और एलआईसी मैच्युरिटी धारा 10(10D) में टैक्स-फ्री होती है। उच्च कर श्रेणियों (30% slab) के लिए टैक्स-फ्री एलआईसी रिटर्न अक्सर टैक्स-कटौती के बाद एफडी से बेहतर होते हैं।

LIC vs FD 2026 Returns AnalysisRead article →Jeevan Labh vs Jeevan Anand ComparisonRead article →

Frequently Asked Questions

XIRR stands for Extended Internal Rate of Return. It is a mathematical method used to calculate the annualized compound rate of return on cash flows that occur at irregular intervals. In a life insurance policy, you pay premiums annually (outflows) and receive payouts like survival or maturity benefits (inflows) years later. XIRR tells you the exact compound interest rate your money earned, making it easy to compare with FDs, PPF, or Mutual Funds.

Traditional LIC policies like New Jeevan Anand, New Endowment Plan, and Jeevan Lakshya typically yield an XIRR return between 5.0% to 5.8% per annum. Limited premium plans like Jeevan Labh may yield slightly higher, around 5.8% to 6.2%, due to shorter premium paying terms and higher accrued bonus rates.

XIRR is solved numerically using the Newton-Raphson or Bisection iterative methods. It solves for the rate (r) where the Net Present Value (NPV) of all cash flows is equal to zero. NPV = Sum of [ Cash Flow / (1 + r)^(Days between / 365) ] = 0. Inflows are positive, outflows (premiums) are negative.

Generally, yes, traditional policy maturity benefits are fully tax-exempt under Section 10(10D) if the annual premium is less than 10% of the Sum Assured. However, starting April 1, 2023, if the aggregate premium of all your traditional policies exceeds ₹5 Lakh in a financial year, the returns are taxable as income.

LIC traditional plans are debt-oriented and prioritize absolute capital safety and guaranteed death covers. LIC invests a majority of its assets in government securities and AAA-rated bonds, yielding steady but lower returns. Mutual Funds invest in equities which carry higher risk but yield 12% to 15% long-term. PPF is a government-backed risk-free scheme offering 7.1% tax-free compound interest.

Paying premiums monthly or quarterly reduces your XIRR. This is because LIC charges a loading factor (usually 3% to 4% higher total cost) for monthly/quarterly modes compared to yearly. Also, paying money earlier in smaller increments shifts the cash outflow timeline, slightly reducing the compound growth period.

Yes. You just need to enter the annual premium amount, the policy term, and the actual final maturity check you received. Using our Custom Maturity mode, you can instantly find the historical XIRR of your closed policy.

For conservative investors, the Public Provident Fund (PPF) is the best alternative. It offers a guaranteed, risk-free interest rate of 7.1% per annum, which is completely tax-free. Combining a PPF account for savings and a cheap term insurance policy for life cover yields a much higher XIRR and better family protection than traditional LIC policies.