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
Term up to 25000 25001 to 50000 50001 to 199999 200000 and above
15 0 0 10 20
16 0 0 15 25
17 0 10 20 30
18 10 15 25 35
19 15 20 30 50
20 20 25 40 70
21 25 30 50 100
22 30 50 80 150
23 35 100 150 250
24 70 150 230 350
25 170 250 330 450
26 270 350 430 550
27 370 450 540 670
28 470 550 650 790
29 570 650 760 910
30 670 750 900 1100
31 800 900 1100 1300
32 950 1050 1300 1550
33 1100 1200 1550 1800
34 1250 1350 1700 2050
35 1400 1500 1850 2300
36 1550 1650 2050 2550
37 1700 1800 2250 2800
38 1850 1950 2500 3050
39 2000 2100 2750 3300
40 & above 2150 2500 3000 3550

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.

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

  • November 4, 2018 at 6:12 am

    Lic single premium policy hasn’t increased its bonus rates .

    • November 7, 2018 at 4:14 pm

      As the interest rates have gone down comparing to previous years, declaring the same bonus also is considered a great thing.

  • November 4, 2018 at 7:23 pm

    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.

    • November 7, 2018 at 4:16 pm

      Basic premium is a monthly premium. FAB is not applicable for Jeevan Saral.

  • November 7, 2018 at 5:34 pm

    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

  • November 17, 2018 at 7:11 am

    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 ?

    • November 17, 2018 at 7:28 am

      My query is for Jeevan Saral (165) L.A. chart

      • November 18, 2018 at 10:24 am

        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.

    • November 18, 2018 at 10:23 am

      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.

  • December 8, 2018 at 11:28 am

    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?

    • December 11, 2018 at 4:49 pm

      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.

  • January 4, 2019 at 9:30 am

    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?

    • January 9, 2019 at 11:44 am

      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.

  • January 30, 2019 at 11:18 am

    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.

    • January 31, 2019 at 3:40 pm

      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.

  • February 6, 2019 at 6:25 pm

    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..

    • February 7, 2019 at 1:15 am

      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.

      • February 14, 2019 at 8:54 pm

        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?

        • February 16, 2019 at 4:17 pm

          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

  • February 13, 2019 at 3:39 pm

    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?

    • February 13, 2019 at 4:26 pm

      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.

  • March 6, 2019 at 3:53 pm

    i could not able to understand jeevan umang bonus rate. could you pls, elaborate

  • March 18, 2019 at 3:52 pm

    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

    • March 19, 2019 at 1:27 pm

      You will get surrender value + Loyalty bonus declare for a 10-year term policy and loan will be deducted.

  • May 10, 2019 at 8:20 am


    • May 10, 2019 at 9:31 am

      Hi Chakshu Guptha,
      Use this calculator and keep the term as 10 years and sum assured as 750000.

  • May 18, 2019 at 2:02 pm

    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?

    • May 18, 2019 at 11:35 pm

      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.

  • May 18, 2019 at 2:36 pm

    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

    • May 18, 2019 at 11:39 pm

      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.

  • May 19, 2019 at 6:58 am

    Hi, For policy issued on December 2017 will this bonus rates will be applicable?

    • May 20, 2019 at 4:27 pm

      Yes, This bonus rate will be applicable for the year 2018 – 19 for the policy issued in 2017.

  • June 23, 2019 at 1:48 am

    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

    • June 23, 2019 at 4:31 pm

      Hi Pranav,
      The information told by the person is far from reality. SRB varies with term and FAB varies with term and sum assured.

  • June 25, 2019 at 7:42 am

    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.

    • June 25, 2019 at 2:08 pm

      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.

  • August 29, 2019 at 11:12 am

    Please mention Bonus for the year 2018-19 regards ramesh

    • August 30, 2019 at 5:46 am

      LIC 2018-19 rates are provided in the post itself…


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