LIC OF INDIA BONUS TYPES AND RATES
Bonuses:To know Bonus information, first we need to know what types of bonuses lic pays to its customers. How Bonuses get calculated.
All LIC Plans with the suffix ‘With Profits’ are eligible for annual reversionary bonuses.
When the bonuses are allocated they become vested with the policy and are payable on maturity. Where a policy is surrendered for cash value, the vested bonuses are added to the ‘paid-up value’ under the policy only after the policy has completed three years from the date of commencement. The rate of bonus allocated depends upon:
1. The Plan and Term of the policy.
2. LIC’s Investment experience and the surpluses generated during the year.
Guaranteed Additions (GA):
In respect of some ‘without profit’ plans, LIC of India guarantees an annual addition to the policy at a predetermined rate which is made known to the policyholder even before he has signed the proposal papers.
Terminal Bonuses are payable only in respect of death and maturity claims and not for surrenders and premature cancellations of policies. The terminal bonus rates and conditions for allotment vary every year depending upon LIC’s investment experience and its bonus distribution policies.
AN IMPORTANT NOTE ON OUR BONUSES
While LIC of India will try to maximize the bonuses to its policy holders through prudent management of its funds, it does not however guarantee regarding the quantity of bonuses or bonus rates under any policy. Bonuses may increase or decrease year after year depending upon LIC of India's investment experience.
Bonus Rates of LIC of India
Comparison Chart of Bonus Rates for recent years
Bonus Rate of 2011-12