The latest bonus rates declared for all the with profit in force plans are provided here. The greatest difference from the previous year’s declarations is that LIC has declared separate rates for policies with a sum assured higher than one lakh. The introduction of slightly lower rates for small sum assured policies is understandable as the expense ratio to premium will be higher in lower sum assured policies.
Table of Contents The sum total of all the declared bonus amount thus added to the policy account, in with-profits policies, will become payable at the time of exit from the policy by way of death or maturity. On the other hand, loyalty additions are one-time payment which becomes payable at the time of exit by way of death or maturity. LIC Bonus Rates 2020 – 2021(as per 2020 March Valuation) – All details with charts and illustrations. LIC of India has declared the latest bonus rates for the valuation period 1 st April 2019 to 31st March 2020. You may be knowing that LIC shares its valuation surplus or profit to the policyholders in the form of Bonus and Loyalty Additions. Bonuses as per the rates declared will get added to the respective policy accounts as a valuation surplus for the current financial year. Bonus for the particular year will be 10,00,000 X 45/1000 —> Rs. 45,000
Easy Compare – Drag and Drop tool to compare LIC Plans easily. Sign up and get new posts delivered right in your mailbox… The LIC’s Bonus rate chart for withdrawn plans (plans which are not available for sale now) as per 2020 march valuation is given below. The bonus rates of withdrawn plans also have been reduced sightly owing to the change in the market rates. If you want to know more about the bonus rates declared by LIC in previous years, please read this article. Read more: As we have seen earlier, Final Addition Bonus (FAB) is a one-time additional bonus paid along with the final payment of the policy. Final Additional Bonus rates are dependant on certain factors that are often ignored at the time of purchasing an insurance policy. The minimum term required for the eligibility of the Final Additional Bonus is 15 years.
Sign up and get new posts delivered right in your mailbox… LIC has decided to maintain the FAB rates declared in the last financial year for the policies (exiting by death and maturity) in the current financial year also. Insurance and financial maters made simple – Personal Finance Blog Thank you for sign up!