Final Additional Bonus (FAB) for LIC’s Policies for year 2015-16

Final Additional Bonus (FAB) for LIC’s Policies for year 2015-16

Life Insurance

Final Additional Bonus (FAB) is an additional bonus which is paid in participating policies, other than the simple reversionary bonus. Final Additional Bonus is paid only once in the policies resulting into claim by maturity or discounted claim (Surrender of policies with one year preceding the date of maturity) or death claim, during the period 01/01/2016 and ending 9 months from the date of next valuation (ie 31/12/2016)  at the rate declared by LIC, provided the policy is in force for full sum assured till the date of maturity or discounted claim or date of death. Final additional bonus depends upon the sum assured in policy and term of the policy. Continue reading “Final Additional Bonus (FAB) for LIC’s Policies for year 2015-16”

LIC of India’s Bonus rate declared for 2015-16

LIC of India’s Bonus rate declared for 2015-16

LIC, Life Insurance

LIC of India have declared Bonus rate for all its with profit policies. Evert year Actuarial department of LIC do valuation and declares the bonus rates. These bonus rate are applicable for policy year entered upon during the inter valuation period i.e. 01/04/2014 to 31/03/2015 and in force for full sum assured as on 31/03/2015. It would apply to policies resulting into claims by death or maturity (including those discounted within one year of maturity) or surrendered on or after 01/01/2016.

Latest: LIC Of India’s Bonus Rates Declared For 2016-17

Final additional bonus (FAB) and Loyalty addition (LA) are also declared with reversionary bonus rate. FAB and LA are not applicable to each policy. They are paid as per the policy conditions and depend upon the Sum assured and policy term.

How to calculate Bonus in your policy

Example: If you have a New Jeevan Anand Policy (Table No. 815), Sum Assured: Rs. 500000, Term: 21 years.  Bonus calculations Formula: (Sum Assured/1000)*Bonus rates

Bonus in above mentioned plan: (500000/1000)*49 = Rs. 24500.

Bonus Rate declared by LIC of India

LIC’s Bonus Rates for year 2015-2016