LIC Bonus Rates History. 10-Year Track Record
LIC's bonus is the 'extra money' added to your policy every year on top of the sum assured. It's a major reason people choose LIC over private insurers. But how consistent has it been? Let's look at the actual numbers.
What is LIC Bonus?
Every year, LIC invests your premium money in government bonds, stocks, and real estate. When these investments earn profits, LIC shares a portion with policyholders as 'bonus.' This bonus is added to your sum assured and paid out at maturity (or death).
There are two types: Simple Reversionary Bonus (declared every year, ₹X per ₹1,000 of SA) and Final Additional Bonus (one-time bonus at maturity for long-term policies).
Bonus Rates for Popular Plans (Last 5 Years)
Here are the approximate simple reversionary bonus rates declared by LIC:
- •New Jeevan Anand (915): ₹46-50 per ₹1,000 SA per year
- •Jeevan Lakshya (933): ₹46-49 per ₹1,000 SA per year
- •Jeevan Labh (936): ₹54-58 per ₹1,000 SA per year (highest among endowments)
- •Jeevan Umang (945): ₹45-48 per ₹1,000 SA per year
- •New Endowment (714): ₹42-46 per ₹1,000 SA per year
- •New Money Back 20yr (720): ₹42-45 per ₹1,000 SA per year
How Much Difference Does Bonus Make?
Let's take a real example. Suppose you have Jeevan Anand with ₹10 lakh SA, 20-year term, bonus rate ₹48/1000:
Sum Assured: ₹10,00,000. Annual Bonus: ₹10,00,000/1000 × ₹48 = ₹48,000 per year. Total Bonus over 20 years: ₹48,000 × 20 = ₹9,60,000. Plus Final Additional Bonus: ~₹1,00,000-2,00,000.
Total maturity: ₹10,00,000 + ₹9,60,000 + ₹1,50,000 = approximately ₹21,10,000. If you paid ~₹9,00,000 in total premiums, your effective return is about 2.3x what you paid.
Is LIC Bonus Guaranteed?
No. Bonus is not guaranteed. LIC declares it each year based on profits. However, LIC has declared bonuses EVERY SINGLE YEAR for decades without exception. The rates may vary slightly year to year, but they have never been zero.
This consistency is one of LIC's strongest selling points vs private insurers, who simply don't have enough history to show the same track record.
Should You Buy LIC Just for Bonus?
Bonus should be a secondary consideration, not the primary reason. Buy LIC for: life protection (primary), guaranteed savings discipline (secondary), and bonus as a cherry on top. If you're only chasing returns, mutual funds or PPF may give better numbers. But neither gives you life cover.
This article is for educational purposes. Premium rates and benefits are indicative. For official details, visit licindia.in.