**Updated: March 05, 2019**

LIC has revealed the bonus rates for the year 2018-19 for all of its traditional plans. Since return from LIC Policy is majorly depending on the bonus declared, it becomes utmost necessary to know these rates.

But before knowing the bonus rates let us first understand the kinds of bonus declared by LIC and how the bonus is calculated based on these bonus rates.

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**Types of LIC Bonus and Additions**

There are four types of bonuses declared by LIC.

** Simple Reversionary Bonus**

What we simply meant when we say Bonus is this ?Simple Reversionary Bonuses?. This bonus is declared per thousand of the Sum Assured Amount in each financial year by LIC but will be paid at the end of maturity period or on the death of the policyholder, whichever is earlier. For instance if you are holding Jeevan Lakshya Policy with Sum Assure amount of Rs.10 lakhs and policy term exceeding 20 years and the bonus declared this year is Rs.49, then your bonus amount would be Rs.49,000 for current year, but as said earlier, you will get this amount only at maturity or on death.

One important point to note is that in case you surrender the policy then you will not only get proportionate amount that too if you have paid 5 years of premium in full.

**Read: How much commission LIC agent earns**

** Final Additional Bonus (FAB) or Terminal Bonus**

This is the second type of bonus declared by LIC termed as Final Additional Bonus (FAB). FAB is a onetime payment and paid only to those policyholders who have policy of longer duration, say 15 years and more, and has paid premium for all 15 years. Usually, policies having Guaranteed Additions are not eligible for FAB. Given below is indicative list Final Additional Bonus.

** Loyalty Additions**

Loyalty Addition is a non-guaranteed bonus which is given as an appreciation of being a long-term loyal customer of LIC. Usually this is also declared per thousand of sum depending and at the end of the policy term but for some policies it gets declared after completion of certain policy period such as in Jeevan Saral Policy, loyalty additions will be awarded to the policyholders after completing minimum of 10 years. But likewise FAB, loyal addition is also paid at the end of maturity period or on death whichever is earlier subject to completion of minimum policy period.

**Read: Minimum Sum Assured in Life Insurance Policies**

** Guaranteed Additions (GA)**

Some of the LIC Policies offers a ?Guaranteed Additions? which means that policyholder will get an assured amount of sum for a specified period. For instance, Jeeva Shree-1 policy provides a Guaranteed Additions of Rs.50 per year per thousand sum assured for first five years of the policy. Another such policy is Komal Jeevan. Guaranteed Additions are added with the Basic Sum Assured and paid at the time of claim.

**Read: Tax Benefits of Insurance Policies**

**LIC Simple Reversionary Bonus Rates for 2015-16**

I have highlighted the increase of Bonus Rates from past year but no major revisions can be seen in Bonus Rates.

**LIC Bonus Calculation Formula**

The formula of Calculating Bonus amount according to the bonus rate is pretty easy. Since bonus are declare per thousand basis, you have to divide your sum assured amount by thousand and then multiply it by given bonus rate for the year.

Bonus Amount = Bonus Rate X Sum Assured/1000

For instance, Bonus declared for New Children?s Money Back Plan (832) is Rs.48 for current year, so policyholder having Rs.10 lakhs sum assured and policy term exceeding 20 years would get Rs.48,000 (Rs.48 X 10,00,000/1,000) as bonus which will be paid at the time of making claim.

N.Chandraseakaran says

Dear sir /Madam

i have taken LIC JEEVAN ANAND POLICY IN 2005 AND I AM PAYING MY DUES REGULARLY.

NEXT MARCH.2019 IS FINAL DUES.

EVERY YEAR APPROX 90000/-

WHAT WILL BE THE FINAL AMOUNT I CAN EXPECT FROM LIC INCLUDING BONUS ETC..

NOTE:

SUM ASSURED WAS 1000000.

Chandana Banerjee says

Can you kindly calculate the vested bonus for jeevan surabhi plan. It was 15 yrs plan. I invested 11831/- for 12 yrs.It means total I invested 141972/- till now.I got 100000/- in return. Can you pls calculate how much will I get as maturity amount. My plan is maturing on September 2017.

sanjay kumar sharma says

i have endowment policy (policy no-544855437) of s a-7.5 lakh but maturity amt-326000 of premium 9187 quarterly for 10 years,then could u tell me the matured amount at the end of 10 years?

krishan says

Feel free please call me any kind of Query regarding LIC policy , contact No. 9555533345

Sabita limbu says

Child plan has 65 / 1000 so s.a of 500000 for 20 years how much will i get at the end

DIPANJAN SAHA says

my age 41yrs. endowment plan taken on 2016 aug. SA 100000/-

what will l be the maturity value of endowment plan for 11 years.

K N Saha. (M)9874752980 says

For LIC SERVICE FEEL FREE CONTRACT

Patel kumar says

i shall suggest Please invest in NPS

srp says

what is the average bonus for endowment plans

Archana says

Avg bonus rates for endowment plan is Rs 48 per 1000 sa.

Archana prabhune

9879669386

. bskaran says

what will l be the maturity value of bima gold for 12 years. My policy is maturing in 2017;

Sunny Mamgai says

Hi,

I have two LIC policies:

1)Jeevan Anand (149): SA -1000000 / Policy Term:69(premium payment term:24yrs)

Question: What is Policy term: 69 and what will I be getting? Secondly will I be getting any FAB on Jeevan Anand Policy?

2)The Endowment Assurance Polcy(T.N.14): Under this I have 21 bonds and I pay one time payment each each year. Each Bond SA -70000, Term 24yrs

Question: Is this a good policy and will I be getting FAB on this other then the Bonus that I earn. Do you have a calculator for this policy.

Thanks a lot

Sunny

Ganesh says

If we take loan on policy and continue to pay interest as well as premium, will bonus gets affected. I have Jeevan Anand and paying since last 6 years. I pay premium of 10K per year and then take loan of 10K from LIC.

then continue to pay interst for 10K every year and also continue to pay 10K premium. Will there be any effect on bonus since loan is taken ?

Udayakumar says

Hi,

Thanks for posting this. From the above chart it looks like Final Additional Bonus (FAB) applies only to policy term of 17 or more. I thought of taking jeevan anand plan for 16 years. But after looking this, is it wise to go for 17 years since then only FAB is applicable?

Kindly suggest.

R J SARMA says

My emailid drrjsarma@gmail.com

R J SARMA says

Hi,Can you please send me the loyalty addition details for 2014-15,especially that of Jeevan Shree,plan 112