What is LIC Bonus?
LIC Bonus (officially called Simple Reversionary Bonus) is an annual share of profits that LIC distributes to all its participating policyholders. Every year, after the annual valuation, LIC declares bonus rates for each plan. These bonuses are:
- Guaranteed: Once declared and added to your policy, LIC cannot take it back — even if future rates decrease
- Cumulative: Bonuses accumulate every year and are paid out together at maturity or on death claim
- Simple (not compound): Bonus is calculated on the basic Sum Assured only, not on previously declared bonuses
- Expressed as: ₹X per ₹1,000 Sum Assured per year
⚠️ Important: LIC bonus is NOT the same as interest. It is a share of profits and the rate can vary each year. The rates mentioned in this article are approximate and based on recent declarations. For exact rates, please visit licindia.in.
LIC Bonus Rates 2025-26 — All Plans
Below is the complete list of approximate Simple Reversionary Bonus rates for all popular LIC plans:
*Rates are approximate and based on recent LIC declarations. Single premium plans (Jeevan Utsav, Dhan Vriddhi, Bima Jyoti) use guaranteed additions instead of Simple Reversionary Bonus. Source: licindia.in
Final Additional Bonus (FAB) Rates
FAB is a one-time bonus paid at maturity or on death claim, in addition to the regular Simple Reversionary Bonus. The FAB amount depends on the policy term — longer terms get higher FAB. Here are the approximate FAB rates:
*FAB rates are expressed as ₹ per ₹1,000 Sum Assured. "—" indicates the plan is not available for that term. FAB is only applicable for qualifying policies with a term of 15 years or more.
How is LIC Bonus Calculated?
The bonus calculation is straightforward:
Total Bonus = Bonus Rate × (Sum Assured ÷ 1,000) × Policy Term
For the Final Additional Bonus (FAB):
FAB Amount = FAB Rate × (Sum Assured ÷ 1,000)
And the total maturity amount for an endowment plan:
Maturity = Sum Assured + Total Bonus + FAB
Bonus Calculation Example — ₹10 Lakh SA
Let's calculate the estimated bonus for a New Jeevan Anand (Plan 715) policy with ₹10,00,000 SA and 20-year term:
Key insight: Out of the ₹22.2 Lakh maturity, ₹12.2 Lakh (55%) comes from bonus alone! This shows why bonus rates are such an important factor in choosing an LIC plan.
🧮 Calculate Your Maturity Amount →
Bonus vs FAB — Key Differences
Frequently Asked Questions
This article is published by LIC-Calculator.com for educational and informational purposes only. LIC-Calculator.com is not affiliated with, endorsed by, or connected to the Life Insurance Corporation of India (LIC) in any way.
The bonus rates mentioned in this article are approximate and based on publicly available information from recent LIC declarations. Actual rates may vary. For official and exact bonus rates, please visit licindia.in or contact your nearest LIC branch.
This is not financial advice. Please consult a certified financial advisor (SEBI-registered or IRDAI-licensed) before making any insurance or investment decisions. Past bonus rates do not guarantee future rates.