The purpose of this blog is not to compile LIC of India bonus rates for all the policies across years. The purpose here is to give you an indicative idea about how bonus rates have been fluctuating over years. For the purpose of simplicity I have used Jeevan Anand plan varying across 5, 10, 15 and 20 years to illustrate the variance.

 

 

Life Insurance Corporation of India (LIC of India) issues its bonus and final addition bonus (FAB) rates each year. This blog shows you how have the bonus and FAB rates fluctuated over the years. This blog post covers rates since year 2001. These bonus rates are declared based on valuation of LIC’s business. These bonus and FAB rates finally decide how much will a policy holder of LIC endowment policy get at the end of the policy term.

For the sake of simplicity I am showing you rates for a very popular Jeevan Anand plan for a sum assured of greater than Rs. 200000/- for final addition bonus. Each plan has its own rates but trends are similar. I advise you to consult your agent or LIC branch office to understand year wise valuation of the rates. If you want to see last year’s rates please click here.

 

Summary

• The purpose of this blog is not to compile bonus rates for all the policies across years. The purpose here is to give you an indicative idea about how bonus rates have been fluctuating over years. For the purpose of simplicity I have used Jeevan Anand plan varying across 5, 10, 15 and 20 years to illustrate the variance
• LIC of India declares its bonus and Final Addition bonus (FAB) rates each year.
• This blog is not a place for you to get all the bonus rates. You can find the last year’s bonus and FAB rates here on the LIC of India website.
• Bonus rates vary according to the policy and term of the policy. E.g. Jeevan Anand policy with a term of 5 year will have a different bonus rate than Jeevan Anand of 11 years.
• As per the last reported bonus rates LIC of India reported different rates for policies with term <11 years, between 11-15 years, between 16-20 years and >20 years
• Final Additional Bonus is dependent on the term of the policy and the sum assured. E.g. LIC of India’s Jeevan Anand policy of Sum Assured of 3 lakhs for 5 years will have a different FAB than same policy of 10 lakhs for same 5 years.
• The data in this post is for a sum assured of more than Rs. 2 Lakhs.
• If you want to see how these rates apply in getting to the maturity value. A sample calculation based on this data is presented at the end of this post for your convenience.

 Jeevan Anand Policy Term of 5 Years

 Bonus:

FAB:

No FAB was paid for policy term of 5 years.

 

Jeevan Anand Policy Term of 10 Years

Bonus

FAB:

No FAB was paid for policy term of 10 years.

 Jeevan Anand Policy Term of 15 Years

Bonus

FAB:

 

Jeevan Anand Policy Term of 20 Years

Bonus

 FAB:

 

 

Sample Calculation based on Data Above to arrive at maturity numbers

•  Policy: Jeevan Anand (This post only has data for Jeevan Anand).
• Policy Term: 5 years
• Sum Assured: Rs. 300000/-
• Year the policy was taken: 2002

FINAL MATURITY VALUE = Sum Assured + (Sum of all bonuses per thousand of sum assured) + Final Additional Bonus per thousand of sum assured if any

Now let’s use the same formula to arrive at the final maturity value for the policy mentioned here

		Sum Assured per thousand means 300000/1000 = 300 is to be used for calculations
Year	Bonus Rate	Bonus per Thousand (Bonus Rate x 300)
2002	Rs. 40	Rs. 12000
2003	Rs. 38	Rs. 11400
2004	Rs. 34	Rs. 10200
2005	Rs. 30	Rs. 9000
2006	Rs. 32	Rs. 9600
	TOTAL Bonus	Rs. 52200
	FAB for the same period	Rs. 0
	Sum Assured	Rs. 300000
	TOTAL MATURITY	Rs. 352200

 

 Errors and omissions excepted (E&OE). Please consult LIC of India for figures. This blog has been posted for illustrating the fluctuations in the bonus terms for only educational porpose. 
INSURANCE IS A SUBJECT MATTER OF SOLICITATION.