The main USP of LIC policies is the 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 for the year 2020-21 for all of its traditional plans. LIC has not revised the bonus rates for the 2023-24 fiscal year as well. So you can continue to use the previous rates for your calculations.

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 a Sum Assured amount of Rs. 10 lakhs and policy term for 25 years. The bonus declared this year is Rs. 47, then your bonus amount would be Rs. 47,000 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 of Final Additional Bonus.

### #3. Loyalty Additions

Loyalty Addition is a non-guaranteed bonus that 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 a 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 the 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 policyholders will get an assured amount of sum for a specific period.

For example, the 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.

**Check out** – LIC Jeevan Shanti review

## How to Calculate LIC Bonus

You are now aware that LIC declares bonuses as per thousands of sum assured. To calculate the 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 the next section).

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

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

The bonus declared for terms above 20 years is Rs. 38 (for the year 2021-22).

Let’s calculate:

Bonus Amount = Rs. 38 x (10,00,000/1,000) -> Rs. 38 x 1,000 -> Rs. 38,000.

Simple !!

Check out – How to find LIC policy number

## LIC Simple Reversionary Bonus Rates for 2022-23

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 2021-22 on your insurance policy.

Also read – How to surrender LIC policy

## Conclusion

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

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

My emailid [email protected]

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.

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 ?

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

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

what is the average bonus for endowment plans

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

Archana prabhune

9879669386

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

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

For LIC SERVICE FEEL FREE CONTRACT

i shall suggest Please invest in NPS

Jee van sathi 20 yrs endowment policy maturing in 28.02.2023.sa 300000.may i know the maturity amount incl of bonus.

Please get in touch with a LIC official.

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

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

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?

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.

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.

Sir How much did you get finally? Just curious to know. I have a Jeevan Anand plan too similar to your plan.

It depends on your age At the policy time

I have a policy jeevan shree 1 table 162 ,sum assured 700000, premium paying term 10 policy for 15 years.what will be the maturity value of this plan

The disadvantage of bonus system is that bonus is payable only on maturity or death or after some specific period while units system add return on investments etc on yearly cash value which can be withdrawn any year in addition to on maturity or death.