GuideUpdated Nov 2026 · 1 min read
Life Insurance Formula Sheet
The working sums behind life insurance.
III does not publish a formula list for IC-02, so this is our own summary. Numbers are illustrative, and each policy's terms decide the actual result.
Core Calculations
Paid-up valueSum assured x premiums paid / premiums payable
Simple reversionary bonusBonus rate per ₹1,000 x sum assured / 1,000
Yearly premium equivalentInstallment x number of payments a year
Net maturity amountSum assured + bonuses - loan - loan interest
| Measure | Formula |
|---|---|
| Paid-up value | Sum assured x premiums paid / premiums payable |
| Simple reversionary bonus | Bonus rate per ₹1,000 x sum assured / 1,000 |
| Yearly premium equivalent | Installment x number of payments a year |
| Net maturity amount | Sum assured + bonuses - loan - loan interest |
Worked Example: Bonus
- 1
Sum assured
₹2,00,000 with a bonus of ₹40 per ₹1,000.
- 2
Yearly bonus
₹40 x 200 = ₹8,000.
- 3
After 10 years
₹80,000 of accumulated simple bonus.
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FAQs
How is a simple reversionary bonus worked out?expand_more
Bonus rate per ₹1,000 multiplied by the sum assured in thousands.
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