LIC of India’s Bonus rate declared for 2017-18

LIC of India’s Bonus rate declared for 2017-18

Life Insurance

LIC of India has declared Bonus rate on 23/08/2017 for all its with profit policies. Every year Actuarial Department of LIC do the valuation and declares the bonus rates. These bonus rates are applicable for policy year entered upon during the inter-valuation period i.e. 01/04/2016 to 31/03/2017 and in force for full sum assured as at 31/03/2017. It will be applicable to policies resulting from claims by death or maturity (including those discounted within one year of maturity) or surrendered on or after 01/01/2018. Continue reading “LIC of India’s Bonus rate declared for 2017-18”

LIC declared one time Diamond Jubilee Bonus

LIC declared one time Diamond Jubilee Bonus

LIC, Life Insurance

Life Insurance Corporation of India has declared the Bonus rates for the valuation period 1st April 2015 to 31st March 2016. Along with it, LIC has also declared the one time Diamond Jubilee Bonus for its policyholders. Diamond Jubilee Bonus is declared from Rs. 5 per thousand sum assured to Rs. 60 per thousand sum assured. It mainly depends on the time of inception of the policy.

Diamond Jubilee Bonus

One time Diamond Jubilee year special Reversionary bonus rates

Which policies are eligible for One time Diamond Jubilee Bonus?

The One Time Diamond Jubilee Year Special Reversionary Bonus Rates payable per Rs. 1000/- Sum Assured [Cash Option in case of New Jeevan Suraksha I (Plan 147) and New Jeevan Dhara-I (Plan 148), Death Benefit Sum Assured in case of Jeevan Madhur (Plan 182) & Premium Paid for Jeevan Amrit (Plan 186)] for policies in force as on 31.03.2016 and subject to below conditions are as under:

  1. The One Time Diamond Jubilee Year Special Reversionary Bonus Rates will be applicable for policies which were in force on 31.03.2016 by payment of full premium and eligible for regular reversionary bonuses and continuing in the books of the LIC of India on or after 01.09.2016. Therefore, One Time Diamond Jubilee Year Special Reversionary Bonus will not be payable to policies during the free cover period if free cover period started before 31.03.2016 even though policies are in force in such period.
  2. One Time Diamond Jubilee Year Special Reversionary Bonus will be decided in the same manner as simple Reversionary bonus rates are decided for the plan.
  3. One time bonuses (or their surrender value in case of surrender) will be payable under policies maturing or becoming death claim or surrendered on or after 01.09.2016. The date of death or the date of receipt of application of surrender will be taken to decide eligibility condition for One Time Diamond Jubilee Year Special Reversionary Bonus. The deaths occurring prior to 01.09.2016 and intimated later, policies maturing before 01.09.2016 and settled after 01.09.2016 and surrender applications received prior to 01.09.2016 but pending or settled on or after 01.09.2016 are not eligible for this One Time Diamond Jubilee Year Special Reversionary Bonus. Further, One Time Diamond Jubilee Year Special reversionary Bonus will not be payable for policies discounted back prior to 01.09.2016.
  4. Policies which are in paid-up condition or have lapsed without acquiring paid-up value as at 31st March 2016 will also be eligible for this One Time Diamond Jubilee Year Special Reversionary Bonus if they are later revived for full sum assured and otherwise eligible for reversionary bonus as per terms and conditions of the policy.
  5. The One Time Diamond Jubilee Year Special Reversionary Bonus is not payable to without profit policies, the policies under which guaranteed additions have been added during the inter-valuation period and policies under which loyalty additions are payable as per terms and conditions of the plan.

Disclaimer: For any ambiguity in details and confusion related to eligibility of one-time diamond jubilee bonus in your policy, please contact your concerned LIC servicing branch or contact any of these LIC Customer Zones.

 

LIC of India’s Bonus rates declared for 2016-17

LIC of India’s Bonus rates declared for 2016-17

LIC, Life Insurance

This year LIC of India has declared Bonus rate for all its with profit policies before the usual time as LIC is celebrating its Diamond Jubilee year. Every year Actuarial Department of LIC do the valuation and declares the bonus rates. These bonus rates are applicable for policy year entered upon during the inter-valuation period i.e. 01/04/2015 to 31/03/2016 and in force for full sum assured as on 31/03/2016. It will be applicable to policies resulting from claims by death or maturity (including those discounted within one year of maturity) or surrendered on or after 01/01/2016.

Life Insurance Corporation of India has also declared the One time Diamond Jubilee Bonus.

Latest: LIC of India’s Bonus rate declared for 2017-18

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 on 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 Rates declared by LIC of India

The rates of Simple Reversionary Bonus declared in respect of participating policies issued by Life Insurance Corporation of India are as given in the table below

The above reversionary bonus rates are applicable for policy year entered during the inter-valuation period i.e. 01/04/2015 to 31/03/2016 and in force for full sum assured as on 31/03/2016. Bonus rates will be applicable to the policies resulting from claims by death or maturity (including those discounted within one year of maturity) or surrendered on or after 01/01/2017.

No cash bonus rate has been declared in respect of New Jeevan Akshay – I (Plan 146).

For General Annuity / Pension policies (Plans 147, 148 & 169), the bonus rates are applicable only during the deferment period. The bonus rates in case of Plan 147 & 148 are not applicable for policies exiting by death during the deferment period. However, the cash value of bonuses is payable in case of surrenders during the deferment period.

No bonus has been declared for any other General Annuity or Pension plans.

Disclaimer: I have taken utmost care while entering the bonus rates, but in the case of error or any ambiguity please consult your LIC Branch. 

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