LIC India – Bonus Rates,Bonus History & Info

Personal Finance Blog India –

Oct 29, 2012

Life Insurance Corporation declares interim bonus every year and added in the account of respective policy holder.

Policies which are categorized as With Profit policy tend to get the bonus while non-profit policies like term insurance or term insurance with return of premium plans won’t get the bonus.

Bonus declared is generally depends on

• Type of policy like Whole life,Moneyback or Endowment plan.
• Bonus rates are better for whole life plans ,then endowment and then money back plan.
• profits made by insurance company.
• Interest rate scenario.
• Duration Of Policy – generally, more duration means better better rate.

Bonus info shown below is for policy duration of 16-20 years and interim and reversionary bonus.Bonus rates are skipped in between where rates are same as preceding year & to make the list as possible short.

Bonus declared is always based on Sum assured and not premium.

Rates of bonus per 1000 Sum Assured:

Sr.No	Valuation Year	Whole Life Plan	Endowment Plans
1.	1957	16	12.80
2	1959	16	12.80
3.	1961	16	12.80
4.	1963	17.50	14
5.	1965	20	16
6.	1967	20	16
7.	1969	22	17.60
8.	1971	22	17.60
9.	1973	22	17.60
10.	1975	22	17.60
11.	1977	25	20
12.	1979	31	24.80
13.	1981	35	28
14.	1983	42.5	34
15.	1985	55	44
16.	1986	65	52
17.	1987	72.50	58
18.	1988	77.50	62
19.	1989	80	64
20.	1990	82.50	66
21.	1991	84	67
22.	1992	84	67
23.	1993	84	67
24.	1994	84	67
25.	1995	86	69
26	1996	86	69
27.	1997	88	71
28	1998	91	71
29.	1999	91	71
30	2000	95	71
31	2001	80	71
32.	2002	80	65
33.	2003	80	58
34.	2004	80	51
35.	2005	71	45
36.	2006	66	40
37	2007	70	42
38.	2008	70	42
39	2009	70	42
40.	2010	70	42
41.	2011	70	42
42.	2012	70	42

Bonus declared for Money Back plan is always slightly lower than that for Endowment plans since money is regularly paid back to investor & sum assured remains same till the end of policy.