LIC Maturity Claim Process: Documents Required, Timeline and Tax on the Maturity Amount

The LIC maturity claim process is simple if you start on time. About two months before maturity, LIC sends an intimation with a discharge form. You return it with your policy bond, KYC and bank details, and the maturity amount is credited to your account, normally on the due date. Most delays come from missing papers, not from LIC.

This guide walks through each step, the documents you need, how tax and TDS work, what to do if the bond is lost, and a worked example of the maturity amount. We are an independent site, not LIC. Your servicing branch has the final say on your claim.

Step 1: LIC’s maturity intimation

Around two months before the maturity date, your servicing branch sends a maturity intimation letter to the address on record. It usually includes:

• the policy number, maturity date and an indicative maturity amount;
• the discharge form (commonly Form No. 3825, the discharge receipt);
• a list of the documents to return.

Many policyholders also get an SMS or email. If nothing arrives a month before maturity, check the policy status on the official LIC customer portal or visit the branch. You do not have to wait for the letter to start collecting documents.

Step 2: Fill in the discharge form

The discharge form is your receipt confirming that you accept the maturity amount in full settlement. When filling it in:

• Sign exactly as on LIC’s records. A signature mismatch is a common reason for a query.
• Get it witnessed where the form asks for it, and fix a revenue stamp if required.
• The policyholder signs, not the nominee. For a policy on a child’s life, the life assured signs once they are a major.

Step 3: NEFT mandate and KYC

LIC pays maturity claims only by bank transfer (NEFT). If your bank account is not already registered for this policy, or has changed, submit:

• the NEFT mandate form, and
• a cancelled cheque or the first page of your bank passbook showing your name, account number and IFSC.

For KYC, give a self-attested copy of your PAN and of your identity and address proof, such as Aadhaar. PAN matters because it decides the TDS rate if any part of the payout is taxable.

Documents checklist for LIC maturity

Document	Needed when	Notes
Discharge form (Form 3825)	Always	Signed, witnessed and stamped as instructed
Original policy bond	Always	For plans with cover that continues after maturity, such as New Jeevan Anand 715, the bond is endorsed and returned
PAN copy (self-attested)	Always	Needed for correct TDS
ID and address proof	Always	Aadhaar, passport, voter ID or driving licence
NEFT mandate + cancelled cheque	If bank details are not registered or have changed	Name on the account must match the policy
Age proof	If age was not “admitted” when the policy was issued	Birth certificate, school certificate, passport
Assignment or reassignment papers	If the policy was ever assigned, for example to a bank	Proof that it has been reassigned to you
Indemnity bond	If the policy bond is lost	See below

Submit everything at least one month before the maturity date so the branch has time to process it.

Can you submit the maturity claim online?

LIC has been adding online services to its customer portal, and some branches accept scanned documents for maturity claims. The rules have changed over time, so check the current option on the official LIC website or with your branch. The original bond may still have to reach the branch. Never share your portal password or OTP with an agent or caller to “file the claim for you”.

Typical timelines

Stage	Typical timing
Intimation letter sent	About 2 months before maturity
Documents submitted	At least 1 month before maturity
Payment credited	On the maturity date, if papers are complete
Late or incomplete papers	A few days to several weeks after the documents are complete

IRDAI’s 2024 master circular on protecting policyholders’ interests expects maturity and survival benefits to be paid on the due date, with interest payable for delays that are the insurer’s fault.

Worked example: estimating your LIC maturity amount

Priya holds a 20-year with-profit endowment policy, similar to New Endowment 714, with a ₹5 lakh sum assured and a yearly premium of ₹25,000. We ran these inputs through the LIC maturity calculator with an assumed bonus of ₹45 per ₹1,000 a year and a final additional bonus of ₹100 per ₹1,000:

Item	Estimate
Basic sum assured	₹5,00,000
Bonus added each year	₹22,500
Reversionary bonus over 20 years	₹4,50,000
Final additional bonus	₹50,000
Estimated maturity amount	₹10,00,000
Total premium paid	₹5,00,000
Return (IRR)	about 6.22% a year

Actual bonus rates are declared by LIC every year, so the real figure will differ. Use the LIC bonus calculator with your plan’s declared rates for a closer estimate. Two things can reduce the cheque:

• An outstanding policy loan. LIC deducts the loan and unpaid interest. See our guide to the LIC loan against policy.
• Money back instalments already paid, in money back plans, come out of the final payout.

In Priya’s case the premium (₹25,000) is only 5% of the sum assured, so the ₹10 lakh is tax-free and no TDS applies. If the policy did not qualify for exemption, TDS would be 2% of the income portion: 2% × (₹10,00,000 − ₹5,00,000) = ₹10,000.

Tax on the LIC maturity amount

As of September 2026:

• Exemption: maturity proceeds, including bonus, are tax-free under Section 10(10D) of the Income-tax Act, 1961 if the yearly premium never exceeded 10% of the sum assured (policies issued from 1 April 2012) or 20% (policies issued from 1 April 2003 to 31 March 2012). A 15% limit applies to some policies for persons with specified disabilities or illnesses.
• ₹5 lakh premium limit: for non-ULIP policies issued on or after 1 April 2023, the exemption is lost if your total yearly premium across such policies exceeds ₹5 lakh. The income part (payout minus premiums) is then taxable. Death claims stay exempt.
• TDS: when the payout is not exempt, LIC deducts TDS at 2% on the income portion (reduced from 5% from 1 October 2024), if it exceeds ₹1 lakh in the year. The rate is much higher without a PAN.
• New Income-tax Act: from 1 April 2026 the Income-tax Act, 2025 replaced the 1961 Act. The rules above continue, but the sections were renumbered: the 10(10D) exemption now sits in Section 11 read with Schedule II, and TDS under the old Section 194DA now falls under Section 393(1). Most forms and articles still use the old names.

Tax rules change, so confirm your case with a tax adviser before filing your return.

What if the policy bond is lost?

Do not panic. The money is still yours. Tell your servicing branch in writing as soon as you realise the bond is missing. The usual steps are:

1. A written request for a duplicate policy, or for settlement without the original.
2. An indemnity bond on stamp paper of the value your state requires.
3. For larger amounts, a newspaper advertisement announcing the loss.
4. A small fee for the duplicate bond, if one is issued.

This can add several weeks, so start well before the maturity date.

Settlement options for the maturity amount

You do not always have to take the whole amount at once:

• Lump sum: the default. Everything is paid on the maturity date.
• Settlement option: many plans launched after 2014 let you take the maturity amount in yearly, half-yearly, quarterly or monthly instalments over 5, 10 or 15 years. You usually have to opt for it before maturity, and a minimum instalment applies.
• Pension or annuity plans: at vesting, part of the amount buys an annuity, as described in your plan.

Check whether your plan has these options in its policy document or with the branch.

Common reasons for delay

• Discharge form or original bond submitted late.
• Name, signature or bank details that do not match LIC’s records.
• NEFT mandate missing, or the registered bank account closed.
• PAN not linked or not submitted.
• An assignment to a bank or lender that has not been cleared.
• Age not admitted at the time of issue and no age proof submitted.
• An outstanding loan or unpaid premiums that must be adjusted first.

Key takeaways

• Expect LIC’s intimation about two months before maturity. Do not wait for it to gather documents.
• Return the discharge form, original bond, PAN, ID proof and NEFT details at least a month early.
• Complete, matching papers usually mean payment on the maturity date.
• Most maturity amounts are tax-free, but check the 10% premium rule and the ₹5 lakh limit for newer policies.
• If the bond is lost, start the indemnity process early.
• Estimate your figure with the LIC maturity calculator and compare the return with the LIC return calculator.