LIC bonus rates for the year 2016-17 are recently declared by the life insurance Corporation of India. These latest bonus rates are applicable for the valuation amount from first April, 2015 to thirty first March, 2016.

This year LIC has declared a one-time jubilee Bonus, marking its sixtieth anniversary celebrations. This bonus is additionally to simple interest bonus, Final extra bonus (FAB) & Loyalty additions (LA).

The Investment Returns on traditional life insurance policies like Moneyback or Endowment ar largely dependent on the bonus rates declared by LIC. therefore it’s important to track the Bonus rates of the LIC Policies that you just have bought.

All insurance plans of LIC with the suffix ‘With Profits‘ ar eligible for allocation of annual interest bonuses. once the bonuses are allotted they become vested with the policy and are payable on maturity or on death of the assured throughout the term of the policy.

These new bonus rates are applicable on policies that are in-force as on 31-03-2016 and additionally applicable to all or any LIC policies where death claims or maturity claims ought to be paid (or) surrendered on or when first Jan, 2017.

The rate of bonus allotted on your LIC policy depends upon:

  1. The Plan and Term of the policy.
  2. LIC’s Investment experience and the surpluses generated during the year.
  3. Bonus declared is always based on Sum assured and not on the premium amount.

Latest LIC Bonus Rates 2016-2017

Below are the easy interest bonus rates declared by LIC of India for the financial year 2016-17.

Latest 2016-17 LIC Bonus Rates

Kindly note that except on the below mentioned plans, the 2016-17 bonus rates on most other previous plans of LIC are same as the bonus rates of 2015-16. (The bonus rates on the below plans are slightly raised.)

  • Jeevan Bharti Plan No. 60 (20 year term)
  • Jeevan Shree – 1 (Plan no. 162)
  • Jeevan Nidhi (Plan no. 169)
  • Jeevan Pramukh (Plan no. 167)
  • Jeevan Amrit (Plan no.186)

2015-16 LIC Plans & Bonus Rates

Below list has the LIC Bonus rates of a number of the new (during 2015-16) launched plans of LIC.

2015-16 LIC Plans & Bonus Rates

LIC Jubilee Year one-time Special Reversionary Bonus Rates

Below area unit the only once jubilee Year Special interest Bonus Rates on LIC policies;

LIC Jubilee Year one-time Special Reversionary Bonus Rates

(The just the once Special interest Bonus isn’t payable to without profit policies, the policies below that secured additions are added throughout the inter-valuation period and additionally on policies under that loyalty additions are payable.)

How to read the above tables? How to calculate the bonus amount on my LIC policy?

In the on top of table, on “New Jeevan Anand” fifteen years plan – LIC has declared Rs 41 per Rs 1000 total Assured. If you had bought the same plan for a total Assured of Rs 3,00,000 then the bonus amount on your policy would be Rs 12,300 ((SA/1000)*41). Like this, each year LIC declares bonus rates. But, the rates will vary. Remember, these bonus amounts aren’t paid to you immediately. they’re increased and paid on maturity or claim.

If you observe that the minimum bonus amount per Rs 1000 total assured on new plans is Rs 37 and the maximum being Rs 50. The returns area unit pretty low. it’s higher to avoid investment in these kind of low-yielding traditional plans (of any life insurance company’s) for long-term.

Besides simple interest Bonus, LIC additionally declares alternative types of bonuses like;

  • Final Additional Bonus (FAB) : It’s paid to those policies which are of a longer duration and has run for say more than 15 years. This is a one-time payment.
  • Loyalty Additions : These are similar to FAB.
  • Guaranteed Additions : The Guaranteed Additions are payable along with the Basic Sum Assured at the time of claim.