How to calculate maturity value of your PLI policy? (maturity calculator)
Do you have a Postal Life Insurance policy? Is it due for maturity? Or are you just wanting to calculate the maturity amount of your PLI policy? Well, this article tells you how you can calculate the maturity value of your PLI policy in simple steps. Let’s begin.
Further, we would like to point out that there is no official PLI maturity calculator tool by the India Post, you as a policyholder will also have to be cognizant of this. Accurately calculating your PLI maturity value is a manual process that you will need to undergo. We will show you how below.
Step 1.) Identify your PLI policy
Postal Life Insurance offers a variety of life insurance plans like Whole Life Assurance (Suraksha), Anticipated Endowment Assurance (Sumangal), Joint Life Assurance (Yugal Suraksha), Endowment Assurance (Santosh), Children Policy (Bal Jeevan Bima), and Convertible Whole Life Assurance (Suvidha). Find out which is your policy.
Step 2.) Break-up of maturity value
Now, you will need to get a break-up of all of the aspects of your maturity value. For instance, if you have a Santosh PLI policy (Endowment Assurance), you will have to get the following details:
- Fixed policy maturity value (This is the fixed maturity value of your policy). If you have taken a Santosh PLI policy for 5 Lakhs, then this would be your fixed maturity value.
- Next, calculate the bonus amount on your PLI policy. This is the yearly bonus that accrues in your policy. The bonus amount may fluctuate from year to year based on the type of policy taken and the performance of the policy. You will have to take to your agent or officer to get clarity on the bonus rate. The bonus rate is generally announced at the start of the financial year by the Department of Posts.
In 2023, The Directorate of Postal Life Insurance announced the bonus rate for FY 24 as ₹76/- per thousand of sum assured for the Endowment Assurance policy. You can get the bonus rates for 2023 of other policies here.
Step 3.) Calculation of your PLI policy maturity value
Now, let us show you how to calculate the final maturity value of your policy.
For this use case, we will take the example of a hypothetical PLI policy that a person named Mr. Singh has taken. Let us assume that Mr. Singh has taken his policy in 2013 for 10 years. His policy is nearing maturation in 2023, and he wants to calculate the final maturity figure.
- First, he will have to check his policy bond and get the fixed maturity value figure. For our example, let us say the fixed maturity value figure was ₹10 Lakhs.
- Next, Mr. Singh will have to calculate the bonus figures for each year. Here, generally the updated bonus figures will be sent to him via email to the registered email ID. In case these figures are not sent, Mr. Singh will have to trace down the bonus amount announced by Postal Life Insurance for each year from 2013-2023. Remember, that the bonus amount may be different for every year. For example, let us say PLI announced a bonus of as ₹50/- per thousand of sum assured for the Endowment Assurance policy for 2014. Next, they announced ₹46/- per thousand of sum assured for 2015, so on and so forth.
- Mr. Singh will have to trace all of his bonus amounts from 2013-23. Now let us assume that the total bonus accrued between 2013-2023 is ₹5 Lakhs. That means, he will then have to add his primary maturity value (₹10 Lakhs) + total accrued bonus amount (₹5 Lakhs) = Final maturity value of ₹15 Lakhs.
Note that this is just an example maturity amount, the actual maturity amount may be higher or lower based on your actual PLI policy bonus figures. You can calculate the maturity value of your own PLI policy following the above framework.