Bonus rates for LIC Plan – Comparision over 5 years

Published on Feb 01 2012 // Life Insurance 51,679 views

LIC India Bonus and Loyalty Additions
We shall compare the Bonus rates of different LIC plans over 5 years on how much the corporation has given out and how it has performed.

First, we shall look out for the last 5 years because during this time we have seen lot of markets up and down. In 2008-09 the market crashed, then there recovery, but not to the what we had seen in 2007. So, let us compare the Bonus rates on how LIC has given to it’s policy holder.

What is Bonus on a LIC Life Insurance Policy?

Almost every Life Insurance policy (except Term life), generates cash value every year. LIC distributes its profits among it policyholders every year in the form of a bonus/profit share. An insurance policy can be “with” or “without” profit.

For a Life Insurance Policy which is “with” profit, any bonus declared is allotted to the policy and is paid at the time of maturity/ death (with the contracted amount).

In a “without” profit plan, the contracted amount is paid without any profit share. The premium rate charged for a “with” profit policy is therefore higher than for a “without” profit policy.

LIC distributes its profits among it policyholders every year in the form of a bonus. Bonuses are credited to the account of the policyholder and paid at the time of maturity. Bonus is declared as a certain amount per thousand of sum assured.

An Interim bonus is paid between two successive annual declarations of bonus. It is paid on ‘with profit’ policies that mature or result into claim during the currency of a financial year. Final bonus is declared only at the end of the financial year when the final accounts of LIC are made up. Therefore, the policies maturing during the year are paid proportionate interim bonus for the period from the immediately preceding March 31 till the date of maturity or claim of the policy. This bonus is generally paid at the same rate as the last bonus declared by LIC on the policy.

Bonus rates for different LIC Life Insurance Plans

Today LIC India has got around 30+ different Life Insurance plans in the market. Not all of them are successfull nor do they perform well compared to the others. As earlier discussed, only plans ‘with’ profit and ‘without’ profit are eligble for Bonus.

  • LIC Jeevan Anand
Year 2007 2008 2009 2010 2011 2012

 Bonus for
11-15 year policy

 37  37  37  37  37  39

 Bonus for
16-20 year policy

 41  41  41  41  41 43

 Bonus for
21 & Above
year policy

45 45 45 45 45 47

The bonus has increased for this year(2012) by Rs 2.00 per thousand. So, if you have a Sum Assured of Rs 100000.00, that means 1000 thousands, your bonus for this year has increased by Rs 2000.00

  • LIC JEEVAN SHREE-1
Year 2007 2008 2009 2010 2011 2012

Bonus for
10-15 year policy

37 40 40 40 40 42

Bonus for
20 year policy

41 44 44 44 44 46

Bonus for
25 year policy

45 48 48 48 48 50

This year (2012), there is an increase in bonus. So, expect your Life Insurance maturity to give u a better return on maturity.

  • LIC Endownment Plans
Year 2007 2008 2009 2010 2011 2012

Bonus for
11-15 year policy

38 38 38 38 38 38

Bonus for
16-20 year policy

42 42 42 42 42 42

Bonus for
21 & Above
year policy

48 48 48 48 48 48
  • LIC Surabhi (money Back)
Year 2007 2008 2009 2010 2011 2012

Bonus for
15 year policy

34 34 34 34 34 34

Bonus for
20 year policy

41 41 41 41 41 41

Bonus for
25 year policy

50 50 50 50 50 50
  • LIC Money Back
Year 2007 2008 2009 2010 2011 2012

Bonus for
Money Back & Anticipated
12 or 15 years

32 32 32 32 32 32

Bonus for
Money Back & Anticipated
20 years

39 39 39 39 39 39

Bonus for
Money Back & Anticipated
25 years

44 44 44 44 44 44
  • LIC Pension Plan (New Jeevan Suraksha-I)
Year 2007 2008 2009 2010 2011 2012

Deferment Period
6-10 years

27 27 27 27 27 27

Deferment Period
11-15 years

31 31 31 31 31 31

Deferment Period 
> 15 years

35 35 35 35 35 35

The pension plan is fixed. As I understand, if we do our calculations we should know what would be the approx amount when we retire. We should expect LIC to boost up the Bonus rates for Pension plans, as cost of living is increasing.

  • LIC Child Future Plan
Year 2007 2008 2009 2010 2011 2012

Bonus for
11-15 year policy

36 36 36 36 36 38

Bonus for
16-20 year policy

40 40 40 40 40 42

Bonus for
21 & Above year policy

42 42 42 42 42 44

This year (2012), there is an increase in bonus. So, expect your Life Insurance maturity for your child to grow and have a better return on your child policy.

We have seen few of the LIC Plan Bonus. To know more for other plans, click here.

Apart from Bonus, LIC also adds Loyalty Addition at the end of the term (maturity). This Loyalty Addition (LA) will be different every year and is one time. it doesnot add up to the Sum Assured year on year.

Finally, a life Insurance policy will mature as below:

Keep Paying Premiums every year for a defined Sum Assured” plan will return you “Sum Assured + Bonus (every year almost) + Loyalty Addition (Final year) + Final Additional Bonus + Gauranteed Additions

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