LIC Bonus Rates 2020 – 2021 | All details with illustrations

(Last Updated On: September 19, 2020)

LIC Bonus Rates 2020 – 2021(as per 2020 March Valuation) – All details with charts and illustrations. LIC of India has declared the latest bonus rates for the valuation period 1 st April 2019 to 31st March 2020. You may be knowing that LIC shares its valuation surplus or profit to the policyholders in the form of Bonus and Loyalty Additions. Bonuses as per the rates declared will get added to the respective policy accounts as a valuation surplus for the current financial year. 

The sum total of all the declared bonus amount thus added to the policy account, in with-profits policies, will become payable at the time of exit from the policy by way of death or maturity. On the other hand, loyalty additions are one-time payment which becomes payable at the time of exit by way of death or maturity.

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 explained below

Simple Reversionary Bonus

This is the type of bonus that is 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.

This type of bonus does not compound every year and hence it is called a simple reversionary bonus.

Final Additional Bonus (FAB)

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

Loyalty Additional Bonus (FAB)

Loyalty additions are paid as a one time benefit in some policies in lieu of a 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. In other words, declared loyalty additions become applicable only to the policies getting exit, by way of death, surrender, or maturity, in the declared year (subject to the conditions of the plan).

LIC Bonuses - How to calculate?

Bonus rates 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 Rs. 1000 Sum Assured of the respective plan for that particular year.

For example, The bonus rate of New Endowment (Plan – 914) for the 21-year term is Rs. 45 per 1000 Sum Assured. Let us assume that the policy is for a Sum Assured of Rs. 10,00,000.

Bonus for the particular year will be 10,00,000 X 45/1000 —> Rs. 45,000

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 bonus portion of the maturity returns.

LIC Bonus Rates 2020 - 21 - New plans (as per March 2020 Valuation)

The latest bonus rates declared for all the with profit in force plans are provided here. The greatest difference from the previous year’s declarations is that LIC has declared separate rates for policies with a sum assured higher than one lakh. The introduction of slightly lower rates for small sum assured policies is understandable as the expense ratio to premium will be higher in lower sum assured policies.

LIC Bonus Charts Inforce Plans 2020 - 2021

Click here to download the latest bonus chart.

Of late the financial markets are witnessing a trend of dwindling interest rates over time and naturally, the declared rates have also seen reflections of it. The bonus rates are slightly reduced compared to previous valuations.

LIC Bonus Rates - 2020-2021 -Withdrawn Plans

The LIC’s Bonus rate chart for withdrawn plans (plans which are not available for sale now) as per 2020 march valuation is given below.

The bonus rates of withdrawn plans also have been reduced sightly owing to the change in the market rates. If you want to know more about the bonus rates declared by LIC in previous years, please read this article.

Final addition bonus rates for the policies maturing in financial year 2020-21

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

Final Additional Bonus - Endowment Plans

Final addition bonus rates for financial year 2020 -21

LIC has decided to maintain the FAB rates declared in the last financial year for the policies (exiting by death and maturity) in the current financial year also.

This Final (Additional) Bonuses are applicable In the case of Plans of Groups 1, 2, 8, 9 and 10 mentioned below.

  • (Group 1) Whole Life type (Plans 2, 5, 6, 8, 10, 28 (Before Conversion), 35, 36, 37, 38, 49,77,78, 85 & 86)
  • (Group 2) Endowment type (Plans 14, 17, 27 (After Conversion), 28 (After Conversion), 34, 39 40, 41, 42, 50, 54, 79, 80, 81, 84, 87, 90, 91, 92, 95, 101, 102, 103, 109, 110 & 121)
  • (Group 8) Jeevan Mitra (Double Cover plan), Jeevan Saathi (Plans 88 & 89)
  • (Group 9) Jeevan Mitra (Triple Cover Plan: Plan 133 )
  • (Group 10) Limited Payment Endowment (Plan 48)

Final Additional Bonus - Other plans

The final additional bonus rates of other plans are given in the chart provided below.

Final Additional Bonus rates for other plans 2020

Loyalty Addition Rates - 2020 - 21 (As per 2020 March Valuation)

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.

Loyalty Addition Rates - Popular plans

Jeevan Shree was one of the flagship products from LIC of India which was specifically designed to cater to the needs of high net worth individuals. With high guaranteed addition rates of Rs 75 per 1000 sum assured, the plan provides excellent returns. The loyalty additions declared for Jeevan Shree are amazing and it adds to the attractivity of the plan. Loyalty additions rates of a 25-year term are Rs 1100 per 1000 sum assured. This means 110% of the sum assured is paid as loyalty additions for plans maturing this year in addition to the sum assured and guaranteed additions.

Loyalty Addition Rates for popular plans of LIC 2020 valuation

LIC's Jeevan Saral - Loyalty addition rates 2020 - 21(2020 March Valuation)

Jeevan Saral (Plan 165) has been a very popular plan from LIC of India. This Year LIC has declared the loyalty addition rates for the 19-year term also and the rate ranges from 610 to 830 as per the monthly premium band.

32 thoughts on “LIC Bonus Rates 2020 – 2021 | All details with illustrations

  • September 27, 2020 at 10:21 pm
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    Hi Anish ji. Greetings !!
    I purchased Jeevan Saral in 2008. Should i continue it till 2033 i.e 25 years ? Will it really give good returns?
    I haven’t heard good about this plan. Kindly suggest. Thanks and Regards.

    Reply
    • October 1, 2020 at 2:29 am
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      Jeevan Saral is an excellent plan for the Long term especially if you take it at a younger age. Please use the calculator provided in the post itself. It gives great returns for the long term plan.

      Reply
  • October 4, 2020 at 2:51 pm
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    Hello sir,
    Which evaluation period is applicable if my policy is maturing in December 2021?

    Reply
    • October 26, 2020 at 7:19 am
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      The latest declared rates will be applicable to your policy.

      Reply
  • October 5, 2020 at 8:02 am
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    PLAN 156 JEEVAN SAMRRIDHI LOYALTY ADDITION NOT MANTION?

    Reply
    • October 26, 2020 at 7:39 am
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      Loyalty addition JeevanSamridhi
      These are the rates of Jeevan samridhi. As it is not a popular plan it was omitted.

      Reply
  • October 10, 2020 at 6:53 am
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    Hi Anish ji, Can you pls provide the link to the LIC circular regarding loyalty additions for Jeevan Shree (Plan 112)? Unable to find it on the LIC website or through a Google search.

    Thanks

    Reply
    • October 26, 2020 at 6:49 am
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      LIC circulars are for internal circulation and cannot be posted publicly. If you want the circular you can request it to [email protected] and I shall send it to you.

      Reply
  • October 10, 2020 at 2:51 pm
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    Why has the bonus rates gone down for non-participating plans? Ex. Jeevan Anand it was 45Rs/1000 for 16-20 years last year, this year it’s only 41Rs. In 2019 the interest rates have been quite reasonable in the system. Is LIC paying more dividends to govt this year?

    Reply
    • October 26, 2020 at 6:47 am
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      Bonus rates come down when LIC receives lower rates for its investments. This is related to market rates. LIC was maintaining the same bonus rates for the past four years. The interest rates have come down around 4 % in this period and that is the reason for it.

      Reply
  • October 24, 2020 at 11:04 am
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    Hi Sir,

    I bought a Jeevan Anand 815 plan in 2018 for sum assured 1000000. Time period is 35 years..
    I want to understand FAB component of it.
    Since LIC is declaring FAB each year,
    What will be my FAB in 2053 when I get my maturity amount?
    Does it depend on FAB declared in 2053 or Does it depend on what was declared in 2018 when I bought the plan?

    Thanks in advance..

    Reply
    • October 26, 2020 at 5:41 am
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      The FAB of your policy will depend on the FAB declared on the year of maturity only. It will not depend on the previously declared rates. The rates declared for 2019 will be applicable only to policies maturing in 2019-20 only.

      Reply
  • October 30, 2020 at 8:43 pm
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    Hi, can you please provide the loyalty addition rate for Komal Jeevan Plan (159)

    Reply
    • November 17, 2020 at 12:31 pm
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      Here are the loyalty addition rates of the Komal Jeevan Plan as per the latest declared rates.

      Reply
  • November 18, 2020 at 8:18 pm
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    Your reply doesn’t contain the answer.

    Reply
    • December 20, 2020 at 2:41 pm
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      I am sorry that the image didn’t come in my reply. Well LIC has declared loyalty addition rates only up to 19 years as(113) the policy has completed only 19 years from the date of inception of the policy. The loyalty rates for 17, 18 and 19 years are 50, 65 and 80 per 1000 sum assured respectively.

      Reply
  • November 27, 2020 at 2:33 am
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    Hi sir,
    I was bought LIC plan no 836 for 25 years plan.
    Now a days LIC reduced revisionary bonus rate.
    I am asking that how much return can I expect from this policy at time of maturity, this policy is good for long term period or not ??
    Thanks in advance

    Reply
    • December 20, 2020 at 2:25 pm
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      Even with the reduced bonus rates Jeevan Labh is providing attractive returns and is a good policy in the long term. There is no point in giving any figure as we cannot guess the changes likely in the future. Anyway, you can be sure of the plan providing comparable returns to the market rates.

      Reply
  • December 4, 2020 at 12:09 pm
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    Please help me know the Loyalty Additions for LIC Table 113, Money Back Assured Plan without Profits

    Reply
    • December 20, 2020 at 2:12 pm
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      We cannot give an accurate estimate of the Children’s plan as the policy has completed only 19 years from the date of inception of the policy. Loyalty addition rates are Rs 50,65 and 80 for 17, 18, and 19 policy years respectively.

      Reply
  • December 6, 2020 at 6:23 pm
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    Hi, my children buy back plan 113 is going to get matured on March 2021, I would like to know how much I will get apart from sum assured, I got all my sum assured 50k on installment based on my age,

    My question is how much I will get during maturity

    Reply
    • December 20, 2020 at 1:55 pm
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      As it is maturing in march 2021 you can get an exact estimate by calling the branch office. The provided information is not enough to create an estimate of the maturity amount.

      Reply
  • December 17, 2020 at 7:31 am
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    LIC BONUS RATE : 2020 – 2021 . But 1 st April 2019 To 31st March 2020. Why ?

    Reply
    • December 20, 2020 at 1:21 pm
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      The bonus rates declared by LIC in the year 2020 is based on the valuation process of LIC for the period of April 2019 and 31st march 2020. These rates actually become applicable from 1st January 2021.

      Reply
  • December 20, 2020 at 5:46 am
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    I purchased Jeevan Anand (815) at the age of 26 (year 2015 December) of SA 20L and tenure 21 years
    Does it makes sense to continue ? IRR looks like 6% at a maturity value of 42L

    Reply
    • December 20, 2020 at 1:15 pm
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      The current bank rate is around 5% and it also provides lifelong coverage. If you want to correctly analyze the IRR of an insurance product you will have to remove the risk premium used to give insurance coverage to you and then use the remaining premium to calculate IRR. well, the returns of Jeevan Anand is decent and I do not find any reason to discontinue it.

      Reply
  • December 29, 2020 at 2:52 pm
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    Sir I purchase Jeevan Saral in 2013 December i am not paid premium since 1 year also in corona period i want to surrender my plan its worth or not what is my loss & profit plz help me

    Reply
    • January 12, 2021 at 1:50 am
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      Please visit nearest LIC branch office and get the details. It is advisable to revive the policy.

      Reply
  • December 31, 2020 at 10:37 pm
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    Does Loyalty addition amount vary for each year or year. Bec latest 20-21 year shows less compare to previous years for the plan112. Can you confirm?

    Reply
    • January 12, 2021 at 1:38 am
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      Loyalty additions vary based on the year of maturity and is declared every year. Loyalty additions declared for a particular year will be applicable for policies maturing in that particular year only.

      Reply
  • January 7, 2021 at 11:38 pm
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    what is the bonus rate for the year 2020-21 under Bima Shree 848 plan ?

    Reply
    • January 11, 2021 at 5:27 am
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      Bima Shree is a guaranteed addition plan and hence bonus is not applicable for this plan.

      Reply

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