LIC Bonus Rate Information
LIC bonus is a key part of your maturity amount. If you have a traditional LIC endowment plan, your final payout includes the Sum Assured plus bonus. This guide explains everything about LIC bonus in simple terms.
What is LIC Bonus?
LIC bonus is the share of LIC's profits that it distributes to policyholders every year. It is added to your policy and paid at maturity (or on death).
Only "participating" (with-profit) LIC plans get bonus. Term plans and ULIPs do not get bonus.
Types of LIC Bonus
1. Simple Reversionary Bonus (SRB)
This is the main annual bonus. LIC declares it every year as a percentage of Sum Assured.
Example: SRB = ₹45 per ₹1,000 SA, Sum Assured = ₹10 lakh
Bonus = 45 × 1000 = ₹45,000 per year
2. Final Additional Bonus (FAB)
FAB is a one-time bonus given at maturity or death (after minimum 15 years). It is much larger than SRB and significantly increases your total payout.
Current LIC Bonus Rates (Recent Rates)
LIC declares bonus rates every year after March (financial year end). Below are approximate recent rates:
| Plan | SRB Rate (approx) |
|---|---|
| Jeevan Labh (936) | ₹45 – ₹50 per ₹1,000 SA per year |
| Jeevan Anand (815/915) | ₹40 – ₹48 per ₹1,000 SA per year |
| Endowment (914) | ₹40 – ₹46 per ₹1,000 SA per year |
| Jeevan Umang | ₹42 – ₹48 per ₹1,000 SA per year |
*These are approximate. Actual rates are declared by LIC every year and vary by plan and term.
FAB Rates (Approximate)
| Policy Term | FAB (approx per ₹1,000 SA) |
|---|---|
| 15 years | ₹200 – ₹350 |
| 16 years | ₹350 – ₹550 |
| 20 years | ₹500 – ₹800 |
| 21 years | ₹650 – ₹950 |
| 25 years | ₹900 – ₹1,500 |
How Bonus Grows Over Time
Example: Jeevan Labh (936), Sum Assured = ₹10 lakh, SRB = ₹48 per ₹1,000
| Year | Annual Bonus | Accumulated Bonus |
|---|---|---|
| 5 | ₹48,000 | ₹2,40,000 |
| 10 | ₹48,000 | ₹4,80,000 |
| 16 | ₹48,000 | ₹7,68,000 |
| 21 | ₹48,000 | ₹10,08,000 + FAB ₹9,50,000 |
Why Does Bonus Vary Year to Year?
LIC declares bonus based on its financial performance. If LIC earns more profits, bonus rates go up. If profits are lower, rates may go down slightly. Historically, LIC bonus has been very stable.
How to Check Your Policy's Accumulated Bonus
- Login to LIC portal (licindia.in)
- Ask your LIC agent to check from the LIC system
- Visit your LIC branch and request a Policy Status Report
Bonus and Tax
- Bonus paid at maturity is part of the maturity amount
- Maturity amount is tax-free under Section 10(10D) (if premium is within 10% of Sum Assured)
- Bonus is NOT taxed separately
Final Summary
Disclaimer: Bonus rates are declared by LIC of India and can change annually. All figures here are for educational purposes only.