LIC Group Benefits Secure Plan Calculator: Project Your Employee Benefit Fund

What does this calculator do?

The LIC Group Benefits Secure Plan is a group product for organisations, not individuals. An employer, trust or society takes a master policy from LIC and pays contributions into it. The fund is used to meet obligations to employees or members, such as gratuity, leave encashment or other welfare benefits, while providing group life cover.

LIC classifies it as a non-par, non-linked, group savings plan. In practice:

• Non-par: no bonuses from LIC’s profits. Growth comes from interest credited to the fund.
• Non-linked: the fund is not invested in market-linked units, so there is no NAV to track.
• Group savings: one master policy covers many members, and contributions build a common fund.

This calculator helps HR, finance teams and trustees answer the first planning question: if we contribute this much, what fund will we have after N years? It shows:

• the projected fund at the end of the period;
• the average fund per member;
• total contributions, interest credited and charges deducted;
• the contribution per member per year;
• a year-wise table of contribution, charges, interest and closing fund.

How it works

LIC has not published a crediting formula specific to this plan, so the calculator uses the standard fund-accumulation method common to group savings schemes:

1. Contribution for the year: every year, or only in year 1 for a single contribution.
2. Less charges: a percentage of the contribution that covers the life cover and administration.
3. Add to the fund and credit interest at the assumed yearly rate on the balance.
4. Repeat for each year; the last closing balance is the projected fund.

Interest is credited once a year on the opening balance plus that year’s net contribution. Real schemes may credit more often or use separate “tranches” per contribution, so treat the output as a planning estimate.

The GST exemption from 22 September 2025 applies to individual life policies. For group schemes, check with LIC how charges are taxed.

Worked examples

Example 1: yearly contributions. A company with 50 employees contributes ₹10 lakh a year for 10 years. It assumes charges of 1% and interest of 6%.

Item	Amount
Total contributions	₹1,00,00,000
Charges deducted	₹1,00,000
Interest credited	₹39,31,926
Projected fund after 10 years	₹1,38,31,926
Average per member	₹2,76,639
Contribution per member per year	₹20,000

Sensitivity matters. At 5% the fund would be about ₹1,30,74,719; at 7% about ₹1,46,35,763. Run all three before setting a budget.

Example 2: single contribution. A trust with 100 members puts in ₹50 lakh once. It projects 5 years at 6.5% with 1% charges. The fund grows to about ₹67,81,929, including ₹18,31,929 of interest, or roughly ₹67,819 per member.

Tip: For gratuity funding, start from the liability. Get an actuarial valuation of your gratuity obligation, then use this calculator to test which contribution and period close the gap.

How to read the results

• Projected fund is the balance at the end of the last year under your assumptions. It is not a guaranteed value.
• Average per member is total fund ÷ members. Individual entitlements depend on the scheme rules, salary and service.
• Interest credited shows how much of the fund comes from growth rather than contributions. Over longer periods this share rises sharply.
• Charges are the cost of running the scheme and the life cover. Even 1% a year adds up over a large contribution.
• Year-wise table lets you check the fund at any intermediate year, for example to match expected retirements.

Who is this plan meant for?

The plan is designed for organisations that carry long-term employee benefit liabilities and want to fund them steadily rather than pay them out of cash flow when an employee leaves. Typical users are:

• Companies and firms funding gratuity, which becomes payable to an employee after five years of continuous service.
• Schools, hospitals and cooperative societies that want a separate, insured fund for staff benefits.
• Employee welfare trusts pooling contributions for members’ retirement or exit benefits.

Funding through an insurer keeps the money ring-fenced from the business and adds group life cover for members. Contributions also become predictable, which helps with budgeting. The trade-off is that growth depends on the rate LIC credits, which is conservative compared with market-linked options. Before choosing, compare the terms with LIC’s other group gratuity and superannuation products and with your actuary’s advice.

Common mistakes

• Treating the assumed rate as guaranteed. The crediting rate is declared by LIC and can change.
• Ignoring member movement. Joiners and leavers change both contributions and payouts. Re-run the projection each year with actual numbers.
• Forgetting charges. A projection without charges overstates the fund.
• Using the per-member average as a promise. Employees’ benefits follow the scheme rules, not the average.
• Mixing it up with group term cover. A group term plan only pays on death and builds no fund.

Related calculators

• LIC Group Term Ease plan calculator: group term cover for employees.
• LIC pension calculator: pension income for individual retirement planning.
• LIC FD calculator: compare a fixed deposit return with the assumed crediting rate.

This is an independent planning tool based on assumptions you enter; it is not an LIC quotation. The scheme’s actual terms are set out in LIC’s master policy document.