Bonus rates of LIC of India for the year 2016-17 has been declared on 1st September 2016 for all its participating policies. Loyalty Addition (LA) of all the eligible policies are declared too, including Jeevan Saral (Plan No. 165). Loyalty addition in Jeevan Saral Policy is available when the policy exit through death, maturity or surrender after 10 years.

Loyalty Addition (LA) in Jeevan Saral (Plan No. 165) of LIC of India

Loyalty Addition (LA) in Jeevan Saral policy depends on the duration of the policy completed with full sum assured and, the annual premium band of the policy. An annual premium band can be calculated on the basis of monthly premium in Jeevan Saral. Higher the premium, higher is the loyalty addition in Jeevan Saral. In the case of the partial surrender annual premium band must be calculated on reduced premium.

This year loyalty addition declared in Jeevan Saral is more than the loyalty addition declared last year, you can compare both the rates are given below.

Loyalty addition rates declared previous year (2015-2016) are given below

Loyalty Addition in Jeevan Saral  Policy (Plan No. 165) for the year 2015-2016

For the purpose of determining the rate of loyalty addition for exits by death or surrender or maturity the duration in completed years for which premiums have been paid shall be considered. In the case of partial surrender in policy, the benefits will be proportionately reduced.

How to calculate Loyalty addition in Jeevan Saral

There are two types of Sum Assured in Jeevan Saral a) Death Sum Assured, b) Maturity Sum Assured. To calculate loyalty addition in your policy refer your policy bond to know the Maturity Sum Assured. Also refer premium of your policy and calculated annual premium of your policy (if other than yearly Mode).

Formula to calculate loyalty addition: (Maturity Sum Assured/1000)* Rate of Loyalty Addition as per                                                                                                                                         annual premium band

Note: Maturity Sum Assured on policy bond is written according to the term you have chosen at proposal stage. It will not be used to calculate loyalty addition while surrendering the policy before term.

Under Plan 165, provided at least 10 years premiums have been paid under the policy and policy has been in force for at least 10 years, the loyalty addition is payable on exits by maturity or death or surrender per thousand maturity sum assured for the complete duration for which the premiums have been paid.

Where a policyholder discounts the policy within one year preceding the date of maturity, the policy will be eligible for Loyalty Additions provided other qualifying conditions are satisfied


  •' Subash Mohapatra

    Hello, I am paying a premium of INR 40,000 per year for Jeeven Saral T 165 , today completed10 Years , The policy is for 35 Yrs and Sum Assured is 8,50,000 . Is it good to close the policy now? If I will surrender this in Just completing 10 Yrs what will be the return that i will get from LIC ? Is it the right time to exit ?

  •' SK

    Hi Sir
    Greetings of the day

    I have a jeevan saral(with profits) policy plan. I am paying a monthly premium of Rs.6125(including accident benefit premium of Rs.125/-).
    Policy details:

    The MSA on policy is near : 1600000/-
    Policy taken date : 28 december 2013
    Terms : 20 year
    My age was that time: 26 year
    current age : 30 year 29 year

    1. I would like to know the final amount I will get on maturity (in year 2033) with LA rate of @525 ?

    is it MSA +(1600000/ 1000)* 525 = 1600000 + 840000 = 2440000?

    2. and secondly if I surrender the policy after 10yrs (2023) with LA rate @400 of this policy what will be the amount i get?

    is it MSA for 10 year + LA for this 10 year MSA with @400

    So I am confused here that agent told me to that I will get 4800000 in year 2033.
    He show me Jeevan Saral table chart that is showing if I will pay 6125 per month for 20 years, then I will get near about 4800000/- in year 2033 ?

    Please let me know the exact amount I will get from point 1 and point 2.

  •' Ashok Shah

    Refer to the Policy Jeevan Amrit.
    I understand it is a Term Policy with return of Premiums along with interest @ 3 %.
    I have a friend who has a 5 Pay 25 yr Term Plan for Rs.50 Lac. There is confusion in the Maturity Amt Payable.
    Maturity Amt is Sum Assured + Loyalty Bonus OR
    Premiums Paid + 3% interest on premiums paid + Loyalty Bonus.
    Pl clarify. Thanks

Comments are closed.