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‚Äôs Bonus rate declared for 2017-18”

Loyalty Addition in Jeevan Saral policy for 2016-17

Loyalty Addition in Jeevan Saral policy for 2016-17

LIC, Life Insurance

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

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