LIC Policy is great when it comes to providing the Policyholder with the returns and protection that the insurance policy offers. LIC is known for having the highest Claim Settlement ratio and benefit that the insurer gets. LIC provides various plans that offer an additional payment apart from the Sum Assured. When the LIC Policy attains maturity or a claim under the death then apart from the Sum Assured an additional Bonus is also added to provide the policyholder with maximum benefit. In this article, we will discuss the types of bonus, How to calculate LIC Bonus amount and the Bonus rate for the year 2018-19.
Types of LIC Policy Bonus
LIC differentiate the Bonus mainly into three different categories which depend on the policy type. The following are the LIC Policy Bonuses
Simple Revisionary Bonus
Simple Revisionary Bonus is the bonus added every year to the policy account. This bonus is available at full to the policyholder and is provided at the end of the policy term either through death claim or maturity. In the case of policy surrender, only a portion of the total bonus will be payable depending on the Surrender value
Final Addition Bonus
Final Addition Bonus is paid only one time which is paid along with the Simple Revisionary Bonus and Sum Assured. In the case of surrender, the final additional bonus is paid depending upon the surrender value.
Loyalty Addition
Loyalty Bonus Addition is a onetime payment which is paid by LIC on some of the policy schemes. The loyalty bonus is only available to the policyholder at the time of exit from the policy.
LIC Bonus Calculation Formula
The calculation of the LIC Policy Bonus is very straight forward and it is calculated on the Sum Assured per Rs.1000/-. The bonus amount calculation formula is as follows-
“Bonus Amount= Bonus Rate X Sum Assured/1000”
For Example- the basic sum assured for LIC Jeevan Nidhi for the Year 2019 is Rs.15 Lakhs and the bonus rate for the policy is 46 therefore, the calculation for the Bonus Amount is as follows-
Bonus Amount= 46X 15,00,000/1000= Rs.69,000/-
LIC Bonus Rate 2018-19
Simple Revisionary Bonus Rate
Simple Revisionary Bonus is provided by the LIC of India every year as it is the bonus amount available every year on the policy. The LIC policy official Bonus rates are available in the PDF format which can be downloaded from the official website of the LIC of India. The link for the Bonus Rate PDF Download can be used to download the Bonus Rate.
Final Addition Bonus Rate
Final addition bonus is a one-time addition of the bonus to the Sum Assured. The minimum requirement of the addition of the Final Addition Bonus is of 15 years of the Policy term. The following are the Final Addition Bonus for the sum assured
| Policy Term | Up to 25,000 | 25001 to 50000 | 50000 to 199999 | 200000 & above |
| 15 | 0 | 0 | 10 | 20 |
| 16 | 0 | 0 | 15 | 25 |
| 17 | 0 | 10 | 20 | 30 |
| 18 | 10 | 15 | 25 | 35 |
| 19 | 15 | 20 | 30 | 50 |
| 20 | 20 | 25 | 40 | 70 |
| 21 | 25 | 30 | 50 | 100 |
| 22 | 30 | 50 | 80 | 150 |
| 23 | 35 | 100 | 150 | 250 |
| 24 | 70 | 150 | 230 | 350 |
| 25 | 170 | 250 | 330 | 450 |
| 26 | 270 | 350 | 430 | 550 |
| 27 | 370 | 450 | 540 | 670 |
| 28 | 470 | 550 | 650 | 790 |
| 29 | 570 | 650 | 760 | 910 |
| 30 | 670 | 750 | 900 | 1100 |
| 31 | 800 | 900 | 1100 | 1300 |
| 32 | 950 | 1050 | 1300 | 1550 |
| 33 | 1100 | 1200 | 1550 | 1800 |
| 34 | 1250 | 1350 | 1700 | 2050 |
| 35 | 1400 | 1500 | 1850 | 2300 |
| 36 | 1550 | 1650 | 2050 | 2550 |
| 37 | 1700 | 1800 | 2250 | 2800 |
| 38 | 1850 | 1950 | 2500 | 3050 |
| 39 | 200 | 2100 | 2750 | 3300 |
| 40& above | 2150 | 2500 | 3000 | 3550 |
Loyalty Addition Bonus Rate
The following are the Loyalty Bonus Rate for the Premium Band
| Premium Band | Upto 5000 | 5001 to 20000 | 20001 to 50000 | Above 50000 |
| Duration | 2018 | 2018 | 2018 | 2018 |
| 10 | 300 | 360 | 425 | 475 |
| 11 | 350 | 415 | 475 | 515 |
| 12 | 375 | 450 | 500 | 550 |
| 13 | 400 | 475 | 550 | 600 |
| 14 | 430 | 500 | 570 | 625 |
| 15 | 460 | 520 | 600 | 650 |
| 16 | 490 | 560 | 640 | 690 |
| 17 | 530 | 600 | 680 | 730 |
