LIC Bonus Rates for 2019-20 and Calculation

Updated: Jan 22, 2020.

The main USP of LIC policies is Bonuses they offer on their plans. So, it becomes important to know the updated rates for better decision making.

The latest bonus rates announced by LIC were on 31st March 2019 for the year 2019-20 for all of its traditional plans.

Let’s first understand the types of bonuses declared by LIC and how to calculate the bonus on a plan based on these bonus rates.

Types of LIC Bonuses and Additions

There are four types of bonuses declared by LIC.

#1. Simple Reversionary Bonus

You get a bonus on your policy every year till your policy matures, which is the Simple Reversionary Bonus.

Simple Reversionary Bonus is declared per thousand of the Sum Assured Amount in each financial year and added to your policy amount. SRB is paid at the end of the maturity period or on the death of the policyholder, whichever is earlier.

For instance, if you are holding a Jeevan Laabh Policy with Sum Assured amount of Rs.10 lakhs and policy term for 25 years. The bonus declared this year (2019-2020) is Rs. 50, then your bonus amount would be Rs. 50,000 for the current year that you will receive on maturity.

Read: How much commission LIC agent earns

#2. Final Additional Bonus (FAB) or Terminal Bonus

Final Additional Bonus (FAB) is the second type of bonus declared by LIC. FAB is a one-time payment and paid only to those policyholders who have a policy of longer duration, and have paid premiums for the complete tenure. Policies having Guaranteed Additions are not eligible for FAB.

Given below is an indicative list Final Additional Bonus.

Final Addition Bonus FAB List

#3. Loyalty Additions

Loyalty Addition is a non-guaranteed bonus which is given as an appreciation of being a long-term loyal customer of LIC. Loyalty Addition is also declared per thousand of sum assured.

There are some exceptions, In some policies, Loyalty Addition is declared after completion of the certain policy period. For example, in Jeevan Saral Policy, policyholders get loyalty additions after completing a minimum of 10 years.

Similar to FAB, policyholders (or nominees) get LoyaltyAddition at the end of maturity period or on death whichever is earlier subject to completion of the minimum policy period.

Read: Top life insurance companies in India

#4. Guaranteed Additions (GA)

Some of the LIC Policies offer Guaranteed Additions which means that policyholder will get an assured amount of sum for a specific period.

For example, Jeevan Shree-1 policy provides Guaranteed Additions of Rs.50 per year (per thousand of sum assured) for the first five years of the policy. Another such policy is Komal Jeevan.

Similar to other bonuses, you get it at the time of maturity or claim.

How to calculate LIC Bonus

You are now aware that LIC declares bonuses as per thousands of sum assured. To calculate bonus, you have to divide your sum assured amount by thousand (1000) and then multiply it by the given bonus rates for that year (You will get the latest bonus rates in next section).

Bonus Amount = Bonus Rate x (Sum Assured/1000)

For instance, You have bought a policy New Children Money Back Plan (832) with sum assured Rs. 10 lakhs and policy term is 25 years.

Bonus declared for term above 20 years is Rs.48 (for the year 2019-20).

Let’s calculate:

Bonus Amount = Rs.48 x (10,00,000/1,000) -> Rs. 48 x 1,000 -> Rs.48,000.

Simple !!

LIC Simple Reversionary Bonus Rates for 2019-20

I am sharing the latest reversionary bonus rates as listed on LIC ‘s official website. You can go through the table below to understand how much reversionary bonus you are getting in the year 2019-20 on your insurance policy.

LIC Bonus Rates for 2019-20 and Calculation

LIC Bonus Rates for 2019-20 and Calculation


Now you can easily calculate bonus on your insurance plans and get a clear estimate of your returns. Any question? Let me know in the comments.

Comments (18)

  1. Raj Sep 1, 2019
  2. N.Chandraseakaran Sep 20, 2018
    • Nirav Nagjibhai Khunt Sep 4, 2019
  3. Chandana Banerjee Jul 12, 2017
  4. sanjay kumar sharma May 19, 2017
  5. krishan Apr 14, 2017
  6. Sabita limbu Jan 28, 2017
  7. DIPANJAN SAHA Aug 19, 2016
    • K N Saha. (M)9874752980 Sep 6, 2016
    • Patel kumar Sep 7, 2017
  8. srp Apr 27, 2016
    • Archana May 6, 2016
  9. . bskaran Mar 1, 2016
  10. Sunny Mamgai Feb 1, 2016
  11. Ganesh Jan 10, 2016
  12. Udayakumar Dec 14, 2015
  13. R J SARMA Sep 4, 2015
  14. R J SARMA Sep 4, 2015

Leave a Comment!