LIC Bonus Rates 2018 – 2019 | All Details With Illustrations

(Last Updated On: September 5, 2019)

LIC Bonus Rates 2018 – 2019 | All Details With Charts and Illustrations. Life Insurance Corporation of India (LIC) has declared bonus rates for the valuation period from 1st April 2017 to 31st March 2018. Incidentally, LIC shares its valuation surplus or profit to the policyholders in the form of Bonus and Loyalty Additions. The declared bonus amount may get added to the ‘policy account’ of with-profits policies and shall be available to the policyholder as and when he or she exits from the policy as a result of maturity or death claim.

LIC of India has declared latest bonus rates as per 2019 march valuation on 30/08/2019. Read complete details of LIC’s latest bonus rates as per 2019 valuation with charts and illustrations by clicking this link.

What are the different types of bonuses declared by LIC?

LIC declares different types of bonuses for policies depending on the benefit pattern of the plans and they bear different names. The most common types of bonuses are…

Simple Reversionary Bonus

This is a type of bonus declared every year and shall be added to the ‘policy account’ and shall be available (in full) to the policyholder only when he exits from the policy in the form of maturity or death. If he decides to exit from the policy in between (by surrendering the policy) he may get only a portion of the total accrued bonus, depending on the surrender value available at that time.

Final Additional Bonus (FAB)

Final Additional Bonus (FAB) is a one-time additional bonus, which is paid along with the maturity of participating policies. This is paid in addition to the simple reversionary bonus declared to the policy. Please note that Final Additional Bonus (FAB) is paid only once in the policies, resulting into a claim, by maturity or discounted claim (Surrender of policies with one year preceding the date of maturity) or death claim.

Loyalty Additions (LA)

Loyalty additions are paid as a one time benefit in some policies in lieu of simple reversionary bonus (SRB). The main difference is that, unlike the simple reversionary bonus, which becomes a part of the policy benefits as and when it is declared, Loyalty additions shall be available to the policyholder only at the time of exit from the policy.

LIC Bonus Rate Charts – How to read?

Bonus rates and Loyalty Additions are declared as Simple Reversionary Bonuses in LIC. This means the bonus rates will not be compounded. Bonus rates thus declared shall be applicable for 1000 Rs. Sum Assured of the respective plan for the particular year.

For example, The bonus rate of New Endowment (Plan – 814) for the 21-year term is Rs. 48 per 1000 Sum Assured. Let us assume that the policy is for a Sum Assured of 10,00,000.

So the bonus for the particular year will be 10,00,000 X 48/1000 —> Rs. 48,000

The bonuses thus declared for all the years till the maturity of the policy will be added together at the time of maturity to find the simple reversionary portion of the maturity returns.

LIC Bonus Rates 2018-19 – New plans (as per March 2018 Valuation)

Latest bonus rates declared for all the in force, with profit plans, which are open for sale are given here.  Bonus rates of previous two years also have been given to enable comparison.

You can see that Jeevan Pragati (Plan 838) is the only plan which has shown a negative variation in the declared bonus rates. On the other hand, New Jeevan Nidhi (Plan 812 and 818) showed an amazing increase in bonus rates. In the current scenario of dwindling interest rates, it is great to see such a high positive variation for this plan.

Another notable fact is that bonus rates for Jeevan Umang plan have been declared for the first time and the rates are higher than the expectations.

Click here to download PDF version of LIC Bonus rate comparison for last three years.

LIC Jeevan Umang (Plan 845) Bonus Rates

LIC has declared the bonus rates for newly launched plan Jeevan Umang ( Plan 845) for the first time in the current valuation. LIC Jeevan Umang (T-845) is a versatile, ‘with profit whole life plan’ which has several benefits of erstwhile popular plan Jeevan Tarang (T 178). The greatest advantage of LIC Jeevan Umang is that it offers a ‘Guaranteed Pension’ and ‘Insurance’ to the policyholder and that too without any tax liability on pension amount. LIC offers guaranteed annual survival benefits at the rate of 8% of Sum Assured after premium paying term which is followed by maturity benefit at 100 years of age.

Read more: Five unique features of LIC Jeevan Umang which you may not know.

LIC Bonus Rates 2017-18 – withdrawn plans

The bonus rate chart for withdrawn plans is given here. You may recall that all the insurance plans were withdrawn on 31/12/2013. Plans were restructured and relaunched later from 1/1/2014.

LIC Bonus Rates withdrawn plans 20182019

On closely examining the bonus rates of withdrawn plans, Jeevan Nidhi (Plan 169) will receive exceptionally higher bonus rates compared to the last year in this valuation.

Download PDF version of bonus rates comparison of withdrawn plans from LIC.

Final Addition Bonus (FAB) Rates – 2018-19

As we have seen earlier, Final Addition Bonus (FAB) is a one time bonus paid along with final payment of the policy. Final Additional Bonus rates are dependant on certain factors which are often ignored at the time of purchasing an insurance policy. Minimum term required for the eligibility of Final Additional Bonus is 15 years.

Final Addition Bonus Rates for 1000 Sum Assured
Termup to 2500025001 to 5000050001 to 199999200000 and above
15001020
16001525
170102030
1810152535
1915203050
2020254070
21253050100
22305080150
2335100150250
2470150230350
25170250330450
26270350430550
27370450540670
28470550650790
29570650760910
306707509001100
3180090011001300
32950105013001550
331100120015501800
341250135017002050
351400150018502300
361550165020502550
371700180022502800
381850195025003050
392000210027503300
40 & above2150250030003550
www.insurancefunda.in

If you go through the chart given above, you can see that the higher the term, the final additional bonus rates increase dramatically. FAB rates are dependent on Sum Assured of the policy also.

For example, the final additional bonus of a 30-year policy, with a minimum sum assured of 2,00,000 or above is Rs. 1100 per Rs.1000 Sum Assured. This is equivalent to 110% of Sum assured. To make it more clear, if the sum assured of the policy is 10,00,000 the final additional bonus will be 11,00,000.

The chart provided above (LIC Bonus Rates – FAB) is applicable to endowment type of Plans. LIC has divided other plans into various groups based on their nature and separate charts are provided for each group.

Loyalty Additions – What is it and when it is payable?

LIC Jeevan Saral Loyalty addition rates 2018 2019

Certain plans like Jeevan Shree (151) and Jeevan Saral (165) have a specialized bonus structure. For such plans, no simple reversionary bonuses are declared. Instead, a one-time bonus with the name Loyalty Addition (LA) becomes payable for the policy at the time of maturity as per the valuation of the plan.

You can see that the loyalty additions for Jeevan Saral plan have been increased considerably in the current valuation. As the Loyalty Additions are provided as a one time benefit, this difference shall reflect considerably in policies maturing in the current year.

Download PDF version of Loyalty addition table of Jeevan Saral Plan.

Read more: Click the link provided to open Premium and Benefits Calculator for LIC Jeevan Saral

A Brief Analysis of Bonus and Loyalty Addition rates declared in 2018 March valuation.

Of late, the financial market in India has been showing a continuous trend of reduction of interest rates. There were several instances of interest rate reductions in the past financial year itself. With this background, when we analyze the declared rates, we can see that previous year bonus rates are maintained in all the policies except one(Jeevan Pragati). Two policies showed an exceptional increase in rates also( Jeevan Nidhi and New Jeevan Nidhi). Another golden line is the high loyalty additions declared for Jeevan Saral ( Plan 165).

As LIC has launched umpteen number of plans in the past 62 years since its inception, it is difficult to cover the loyalty addition rates of each and every plans. I have tried to cover all the popular plans in this article and if you require more information you can check the complete bonus rates circular here.

If you require any more clarifications, you can use the comment section given below to ask your queries.

63 thoughts on “LIC Bonus Rates 2018 – 2019 | All Details With Illustrations

  • November 4, 2018 at 6:12 am
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    Lic single premium policy hasn’t increased its bonus rates .

    Reply
    • November 7, 2018 at 4:14 pm
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      As the interest rates have gone down comparing to previous years, declaring the same bonus also is considered a great thing.

      Reply
  • November 4, 2018 at 7:23 pm
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    In the Jeeval Saral’s LA table, you mentioned in your blog. Is the basic premium band Montly or Yearly. I think it should Yearly.

    Question, Is FAB applicable in Jeevan Saral?

    Anyways, Good work on the Calculator.

    Reply
    • November 7, 2018 at 4:16 pm
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      Basic premium is a monthly premium. FAB is not applicable for Jeevan Saral.

      Reply
  • November 7, 2018 at 5:34 pm
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    Thanks for providing this info which I was looking for…. L.A for vintage policies which would be clear only at the time of maturity… La Viva LIC and our naive Income tax payers

    Reply
  • November 17, 2018 at 7:11 am
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    Hi Sir, your chat here shows the Premium monthly basis, Can you please check and confirm if the LA will be calculated on yearly premium basis or monthly ?

    Reply
    • November 17, 2018 at 7:28 am
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      My query is for Jeevan Saral (165) L.A. chart

      Reply
      • November 18, 2018 at 10:24 am
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        In Jeevan Saral plan all the calculations are based on the basic monthly premium, as the sum assured for the plan is 250 times of basic monthly premium.

        Reply
    • November 18, 2018 at 10:23 am
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      Can you please clarify which plan you are speaking about. If it is Jeevan Saral, all the calculations are based on the basic monthly premium.

      Reply
  • December 8, 2018 at 11:28 am
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    Hi sir,

    How to calculate maturity amount for Jeevan Saral 165. If Premium paid is 24020/ year for 10 years.
    As per the chart explained by LIC agent maturity amount will be Rs. 5 lacs. Is this correct?

    Reply
    • December 11, 2018 at 4:49 pm
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      In Jeevan Saral plan, the maturity amount varies depending on the age at entry of the plan. Please use this calculator to get the possible returns.

      Reply
  • January 4, 2019 at 9:30 am
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    Hi Sir, I am paying 49,000/year. Entry age is 27. LA says “Loyalty Addition declared only upto 17 year term”. I have taken for 30 years term. Am I eligible for LA?. If yes, how much it can be approximately?

    Reply
    • January 9, 2019 at 11:44 am
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      Hi Chandra,
      You are eligible for loyalty addition. Only thing is that the loyalty addition rate for the 30-year term of Jeevan Saral plan has not been declared so far. As the policy was started 17 years back loyalty addition rate up to 17 years only have been declared. Loyalty addition rates will increase with the term but I don’t want to do any guesswork.

      Reply
  • January 30, 2019 at 11:18 am
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    Hello Sir,

    Will LIC continue to accrue Reversionary Bonus on the discontinued plans? I have opted for Jeevan Tarang Plan Table 178 and have been paying the premium regularly since 2013. I have noticed that accrued bonus is visible (on the customer portal) for until year 2016-17. However, the accrued bonus for year is 2017-18 is not yet reflecting in the portal. Is there any fixed date for it or LIC has simply stopped paying bonus for discontinued plans? Please advise.

    Reply
    • January 31, 2019 at 3:40 pm
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      LIC will regularly credit simple reversionary bonus to your policy account irrespective of whether it is discontinued or not. It could be a bug in the portal. Contact your nearest branch to get the bonus report of your policy.

      Reply
  • February 6, 2019 at 6:25 pm
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    I have a Jeevan Shree Policy T-112 getting matured this year (2019), its a 12 year payment 20 year maturity plan with a 5 lakhs maturity value. What will be the final maturity value with bonuses etc..

    Reply
    • February 7, 2019 at 1:15 am
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      Jeevan Shree is a guaranteed addition plan where a guaranteed addition @ Rs 75 per thousand SA is added to the policy every year till 20th year. Further Loyalty addition is also payable. I shall write a post on the returns of Jeevan Shree plan within a week or two here. Please check back.

      Reply
      • February 14, 2019 at 8:54 pm
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        Thank you for helping us to get the maturity amounts for LIC policies. I also have Jeevan SHree 112 policy. Term 16 years and period is 25 years. The policy amount is 5 Lakhs. Can you please let me know how much amount i can expect at maturity? Is there a way to know when you write the post on Jeevan Shree policy?

        Reply
        • February 16, 2019 at 4:17 pm
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          Hai Hari,
          I have not forgotten the assurance to you. Now I am writing one article. Once that is finished the next one will be Jeevan Shree. Please subscribe so that you will not miss updates. Thanks, Anish

          Reply
  • February 13, 2019 at 3:39 pm
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    Dear sir,
    I have purchased jeevan saral plan in 2011.Is loyalty addition effects reflects for each and every year premium paid separately or its benefits totally depend on maturity year bonus rate?

    Reply
    • February 13, 2019 at 4:26 pm
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      Loyalty addition is paid as a one time benefit at the time of maturity and the rate will depend on the completed years of the policy. It will be paid if the period is greater than or equal to 10 years at the time of maturity or surrender.

      Reply
  • March 6, 2019 at 3:53 pm
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    i could not able to understand jeevan umang bonus rate. could you pls, elaborate

    Reply
  • March 18, 2019 at 3:52 pm
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    Hi Anish , I have taken Jeevan Saral policy for 35 year Term in 2009 as per latest statement jeevan saral is showing loyalty Bonus value also i had some loan amount which i taken during the tenure and paid regular interest for the same till date. My question is if i surrender the policy now after completion of 10 years of policy then as part of Surender value will i get the Surrender Value + Loyalty Bonus Amount deducting the total amount of loan taken during the tenure . Can you please help me with the same

    Reply
    • March 19, 2019 at 1:27 pm
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      You will get surrender value + Loyalty bonus declare for a 10-year term policy and loan will be deducted.

      Reply
  • May 10, 2019 at 8:20 am
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    IS IT WORKABLE TO SURENDER JEEVAN SARAL POLICY SA 750000 AFTER 10YEARS ,WHAT IS THE CALULATION OR CHART I SHALL BE GETTING IN 11TH YEAR?PL CLEARYFY

    Reply
    • May 10, 2019 at 9:31 am
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      Hi Chakshu Guptha,
      Use this calculator and keep the term as 10 years and sum assured as 750000.

      Reply
  • May 18, 2019 at 2:02 pm
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    For jeevan labh
    1)What is meaning of D.A.B.?
    2)Is Reversionary bonus guaranteed or dependent on lic profit or performance?
    3) Is final additional bonus guaranteed or dependent on lic profit or performance?
    3.1)When final additional bonus will be declared?
    When the Reversionary bonus will start from 1st year or after premium payment term is finished?
    5)Can I get the complete maturity amount as one time Lumpsum instead of pension or Only pension is available?
    AMIT

    Reply
    • May 18, 2019 at 11:35 pm
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      Hi Amit,
      1) DAB means Double Accident Benefit which is the additional accidental death coverage available in the policy. It also includes extended permanent disability benefit which is available in case of permanent disability due to an accident.
      2&3) Reversionary bonus rates and Final additional bonus rates are not guaranteed. It is dependent on the profit and performance of LIC. The rates are remaining more or less same for the past several years for a particular plan.
      3.1) The final additional bonus is declared every year for the policies maturing in that particular year.
      4)Reversionary bonus declared is added to the policy as and when it is declared and declared bonuses will not change thereafter.
      5) It depends on the plan you are choosing. generally, the maturity amount is available as a single lump sum payment.

      Reply
  • May 18, 2019 at 2:36 pm
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    Hi Anish, I would like to ask about the FAB. Which rates will be taken into consideration at Maturity because for some policies the rates declared for 2008, 2010-11, so on and so forth is different. So would it be on pro-rata basis or whatever is the rate on the last year of maturity, which could be even lesser. Please clarify
    Thanks
    Navneet

    Reply
    • May 18, 2019 at 11:39 pm
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      Hi Navneet Suvarna,
      Final Additional Bouns rates declared in a particular year is applicable only to the policies maturing in that particular year. So all policies maturing this year will receive FAB as declared this year. It can change for policies maturing next year if LIC declares a different FAB rate next year.

      Reply
  • May 19, 2019 at 6:58 am
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    Hi, For policy issued on December 2017 will this bonus rates will be applicable?

    Reply
    • May 20, 2019 at 4:27 pm
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      Yes, This bonus rate will be applicable for the year 2018 – 19 for the policy issued in 2017.

      Reply
  • June 23, 2019 at 1:48 am
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    Hello Sir, I am being told by lic person that the SRB on new endowment plan is at fixed rate of 80 per thousand and FAB is minimum 35%. It does not seems like from your post that it can be true. Could you also reply once, thanks

    Reply
    • June 23, 2019 at 4:31 pm
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      Hi Pranav,
      The information told by the person is far from reality. SRB varies with term and FAB varies with term and sum assured.

      Reply
  • June 25, 2019 at 7:42 am
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    Hi Sir
    I have Bima Bachat plan 175 since 2012 sofar two time i have received SB like 3yrs and 6Yrs. I have invested around 25L SA as one time investment. what would be the expected LA and other benefits, sometime i am thinking to withdraw this amount and invest in MF, the next SB is expected 2021; please advise me should I continue with this plan or surrender. Thanks for your kind reply.

    Reply
    • June 25, 2019 at 2:08 pm
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      Hi Umapathy,
      Bima Bachath is a low risk plan with zero risk of losing capital.At the time of maturity,Single Premium paid and Loyalty Additions are paid back to the insured (with out lessing the money backs received). I am not in a position to predict the loyalty additions at the time of maturity but if the term is more you may get returns around bank returns.
      Regarding investing in Mutual funds, I hope you understand the risks in investing in Mutual Funds. But if you are investing for sufficiently long period you can get good returns compared to Bima Bachath Plan. But first you should decide how long you can set aside the fund. If you can invest for more than ten years you can think of surrendering the plan and investing in mutual funds.

      Reply
  • August 29, 2019 at 11:12 am
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    Please mention Bonus for the year 2018-19 regards ramesh

    Reply
    • August 30, 2019 at 5:46 am
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      LIC 2018-19 rates are provided in the post itself…

      Reply
  • September 19, 2019 at 8:40 am
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    Hi Sir,

    I would like to know , where FAB information is available in LIC website. In LIC website, only Bonus declared details are available but FAB details are not available. Can you please explain

    Reply
    • September 19, 2019 at 3:22 pm
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      As the declared FAB is applicable only for the policies maturing in that particular year it is not updated in the LIC web site. It is available in the form of circular. If you want it I can provide that to you.

      Reply
  • September 28, 2019 at 4:47 pm
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    Thanks for useful information. I wanted to take new endowment plan 814 for term of 35 years (age 20) as the returns turn out to be highest in that plan after considering SRB and FAB based on current rates. But as they depend on the profitabilty of lic, I have no idea of what these rates will be after 35 years.

    What is your opinion regarding that? Will it significantly differ from current rates or only a small difference will be there?

    Thanks in advance.

    Reply
    • October 1, 2019 at 4:24 pm
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      I am not in a position to guarantee the rates available after some period. We can give assumptions based on current rates only. I cannot say it will differ from the current rates or will remain the same after so many years. But I can assure you that, based on the reputation of LIC you are likely to get good returns in long term.

      Reply
  • October 2, 2019 at 4:01 pm
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    Sir I have Jeevan Anand policy 815 for 21 years term..I took the policy in 2015 . I want to know that the vested bonus I will get after maturity will it be as per that time rate chart or as per rate at 2015 .

    Reply
    • October 3, 2019 at 6:59 am
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      Hi Kunal,
      The Bonus is added to the policy as and when it is declared for that particular year. You can say it is based on the time rate chart. Actually cumulative bonus of all policy years gets added and becomes a part of the maturity payment.

      Reply
  • October 5, 2019 at 9:57 am
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    Sir,
    I have New Bima gold plan(179) of LIC for which I ma paying 14000 half yearly with term plan Term of 20 year. This policy is having provision of loyelty addition. Is there any way to calculate loyelty addition which I will get upon meturity of insurance.

    Reply
    • October 8, 2019 at 1:36 am
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      Hi Devendra,
      LIC has not declared loyalty additions rates for the 20-year term policy. So far loyalty addition rates have been declared only for the 12-year term (Rs.10 Per 1000 Sum Assured). We will have to wait till the rates are declared by LIC.

      Reply
  • November 6, 2019 at 8:35 am
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    Is there a way to know the Loyalty Addition for Table 151 declared so far?

    Reply
    • November 7, 2019 at 4:41 pm
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      The loyalty addition rates of Jeevan Shree 151 asJeevan Shree 151 Loyalty addition rate per the latest valuation is given in the table provided below.

      Reply
  • November 11, 2019 at 5:40 pm
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    Anish Sir,
    1. For 23 years age of entry, yearly premium of Rs. 84k/- and 35 year term, which one is better between Jeevan Saral and endowment type standard policy from the point of view of maturity amount only?

    2. My Jeevan Saral policy is only 7 years old and has a term of 35 years. I want to partially surrender it now, and continue for 3 years more with reduced premium. After that i will do full surrender. In that case will i get loyalty addition as by age it will be 10 years old?

    Regards,

    A Dutta

    Reply
    • November 12, 2019 at 10:17 am
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      For 23 Years age at entry and for 35 Year term Endowment policy is likely to offer excellent returns to the tune of 1crore 56 lakhs as per current rates. ( considering the sum assured of 31.5 lakhs. We can expect Jeevan Saral also to offer similar returns. But we are unable to reach an accurate estimate as loyalty addition rates are declared only up to 18-year term only.
      You will be eligible for loyalty additions on 10 th year even you partial surrender the policy.

      Reply
  • May 29, 2020 at 6:46 am
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    How is the FAB value determined? based on policy term or Premium paying term?
    In jeevan Anand policy (plan 149),I’m seeing policy term as 77 yrs and premium paying terms is 25 yrs
    So which one is considered here for calculating FAB?

    Reply
    • May 29, 2020 at 5:30 am
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      Generally FAB is calculated based on the period elapsed as of the date of payment of FAB. In Jeevan Anand the premium paying term will be applicable as FAB is paid after premium paying term.

      Reply
  • May 29, 2020 at 3:54 pm
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    This is regarding vested bonus.. whether we get the first year bonus or not after opening the policy?

    Reply
    • June 10, 2020 at 3:50 pm
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      Bonus is added to the policy at the rate declared as and when it is declared. The cumulative amount of bonus is paid along with sum assured and FAB at the time of maturity.

      Reply
  • June 17, 2020 at 7:29 am
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    Is there any possibility to take the matured amount before the date in Jeevan anand 149 plan

    Reply
    • June 26, 2020 at 3:30 pm
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      In order to take the maturity amount before the due date, you will have to surrender the policy. And please remember that surrendering a policy can bring in financial loss and you will be losing valuable insurance cover also. Jeevan Anand plan has life long coverage which also can be surrendered if required but I do not recommend it.

      Reply
  • August 20, 2020 at 6:59 pm
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    Plan 815 New Jeevan Anand
    Policy years-20
    Premium monthly-2810

    The agent claimed that
    Basic Sum assured is 600000.
    Death Sum Assured is 750000
    Basic Sum Assured is 600000
    DAB is-600000
    Bonus-540000
    FAB-42000
    Total Approx return at maturity time-1182000
    +lifetime risk cover of 600000.

    This is the whatsapp text from him. Is it real or exaggererated.
    What is the maturity amount?

    Reply
    • August 20, 2020 at 3:31 pm
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      This is not exaggerated amount. What is shown is as per the declared rates of bonus… It confirm to current rates…

      Reply
  • August 21, 2020 at 2:32 pm
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    What is the approximate SRB one would get in this plan in Maturity?

    Reply
    • August 25, 2020 at 1:20 pm
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      Simple reversionary bonus of each plan is different. Which plan you are referencing. Get the latest bonus rates of all the plans from this article.

      Reply
  • September 8, 2020 at 12:53 am
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    What is the loyalty addition under micro bacht plan of lic

    Reply
    • November 17, 2020 at 12:27 pm
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      LIC has not declared the loyalty rates for MICRO Bachat plan

      Reply

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