LIC’s Bonus rates for 2015-16 and Comparison

LIC’s bonus rates for 2015-16 declared recently (August, 2015). LIC’s announced the bonus rates for all it’s traditional plans for the year 2015-16. This is usually announced by it’s actuarial department based on the valuations.

You note that your LIC policy return mainly depends on LIC bonus rates. Hence, it is very much important to track these rates. LIC will update the same data bit lately.

Below is the exhaustive list of LIC’s bonus rates for 2015-16 and a comparison of bonus chart since 2008 to 2015.

LIC Bonus Rates 2015-16

When you notice LIC’s bonus rates for 2015-16, there are no such major changes. I highlighted with red colour wherever they changed bonus rates. This time LIC declared the bonus rates for the few.

It is hard to believe that LIC maintaining the same bonus rates since long. The supporters of LIC claim that it is one of the best money managing company of it’s investors. But when you look at bonus rates, it is just following of last year bonus rates.

I will soon update the Loyalty Addition and Final Additional Bonus Charts.

95 thoughts on “LIC’s Bonus rates for 2015-16 and Comparison”

  1. i have a LIC new bima gold policy, purchased in 2011. annual premium 100000, policy term 20 yrs, sum assured is 2850000 rs
    as per policy, the maturity return will be = total premium paid till term – survival benefits paid + loyalty additions, if any
    How to know how much will be this LA ? nowhere it is mentioned
    i want to know the maturity return amount for this policy

                    1. im sorry. i had no knowledge while taking this policy 6 yrs back. i`m trying to understand it now. i need your valuable help. as per policy, the maturity return after 20 yrs will be = total premium paid till term – survival benefits already paid + loyalty additions, if any

                      so after excluding the paid premiums amount which u get back, u only get this LA as a earning at maturity ? isnt it true ? any other return in this policy ?

                    2. Ashish-At maturity it is INCLUSIVE of TOTAL premium paid till the end-Survival benefits already paid (money back you receive during policy period)+LA. Hence, this plan only offers LA but no bonus.

  2. Hi Basu,

    I have following LIC Policies –
    1. Marriage Endowment / Educational Annuity Plan started -Dec 2005 for 21 Year
    , SA= 8 Lacs Annual Premium – Rs 39266

    2. Jeevan Mitra double cover plan, Started Mar 2000 for 18 Yrs
    SA= 1 Lac , Annual Premium = Rs 5012

    3. Jeevan Saral ,Started Mar 2000 for 18 Yrs , started Jan 2013 for 15 Yrs.
    SA= 2,50,000 , Annual Premium = 12030

    4. Jeevan Suraksha 1 (Table No.147) , Stared April 2004 , last premium payment to be on 28-04-2032
    Annual Premium – Rs 9999

    Need you help and Guidance to
    A. Estimated return on my above policies (assuming I survived till policy maturity)
    B. If any of above is bad investment, recommendation for early exit ?

    Thanks in advance.


  3. Dheeraj Bharti

    Hello, I’d taken a Policy in which I can only read Endowment in the name. Policy No XXXXXXXX, Half yearly premium of 9767, Commenced Dec 2005, all payments regularly paid. I have the following questions.
    1. Is it better to surrender this or change over to some other, considering other coverage I get from Postal Life Insurance (SUM Assured :10 lakhs, Monthly premium 2750,Covered upto 2037 added to Group Insurance, Cover of Rs 75 lakh, Premium 5000 monthly).
    2. If I do surrender, what’s the likely payout /conversion to child education plan?
    3. Am I Over insured?

  4. Hi basu,
    I had taken a LIC policy ,JEEVAN ANURAG, premium 28000 yearly( paying 14142 half yearly)
    term 20 years,
    comencement : November 2012
    I had taken this policy long before coming across your informative blog. After reading through your article , I have opted for a pure term policy +mutual funds. i have also realised that ,the returns of this policy will be around 6%. Now, can you please inform whats the future course? surrender? paid up? if its surrender, when would be the best time? I have yet to pay the fifth years premium,though the due date is over.

      1. thanks for the reply. I forgot to mention that my last premium date should have been november 2016(which i didnt pay,since i was thinking of making it paidup). Please correct me if I am wrong,to be eligible for surrender, should we make payments for 5 years? If so, I would have paid payment only for 4 years.

  5. Hi Sir,

    I have a Jeevan Anand (149) plan with SA Rs5,00,000/-. My policy start date was May 2005 and my last payment date (on the LIC website) is shown as May 2034 (since 30 year policy). My accumulated bonus (on the LIC website) is Rs2,31,500. However, the maturity term is May 2084. Kindly help resolve my queries:

    1) Why is there a maturity date of 2084 ?
    2) How much will my family be paid if I die before 2034 ?
    3) How much will my family be paid if I die after 2034 and before 2084 ?
    4) What is the expected Surrender Value, if I surrender the policy now ?
    5) I have a pure-term policy with ICICI for Rs49lac. What is your recommendation ? Should I continue with Jeevan Anand (or) surrender it and invest in long-term mutual funds (as I am already covered by ICICI) ?

    Sorry for the long list of queries.

    1. SPB-1) They show like this because it is the combination of endowment and whole life.
      2) It is SA+Bonus till that period.
      3) It is SA.
      4) Better you contact the branch for the same.
      5) Recommendation for what? If you feel 5% to 6% the best return for long-term investment of up to 2034, then continue Jeevan Anand. Otherwise, strictly think of surrendering it. Option is in your hand.

  6. Hello,
    I have Jeevan Surabhi policy . Started on Year 2000 Poliy term is 20 yrs and paid for 15 years. COuld you please let me know my maturity amount. With details

    Thanks in advance

  7. Nikhil Kulkarni

    Dear Sir

    Now there are loyalty addition upto 14 years declared on Jeevan Saral . There is also benefit illustration available on lic website . Is it possible for you to coordinate them and then comment on expected rate of return.

    It seems that the actual returns are better than 10% illustration… Correlating to 6.75- 7% returns. This is for premium less than 5000 for higher premium returns could be more

    Please check & let me know

    1. Nikhil-Actual returns more than 10%? Can you elaborate of how you arrived at this value? Give me an example of age, premium, MSA and the maturity amount after 14 years. Do calculate the CAGR and let me in what way it is better or equal to 10%.

      1. Nikhil Kulkarni

        Dear Sir

        Please go through the LIC website for Jeevan Saral benefits illustration , as I am not able to copy paste the table or insert photos in comment.

        As per IRDA guidelines insurance companies can give example using 6% and 10% returns.

        If you check the same it shows Rs.18000 loyalty addition benefit after completing 10 years for 100000 Rs insurance value which translates into Rs 180 loyalty addition per 1000

        Similarly it shows Rs.41000 loyalty addition benefit after completing 15 years which translate into Rs. 410 per thousand.

        I am aware that these are not guaranteed but when you compare them with actual declared amount Rs 275 for 10 years and Rs. 375 for 14 years . The actual declared amounts are higher than illustration. Here also I have taken figures for premium below 5000 as the benefit illustration is of premium value below 5000 .

        In case we consider premium paid above 50000 ( Fifty Thousand) then the figures are much higher…

        Translating this into actual compounded interest is in the range of 6.75 – 7 % . Hence I requested you to kindly check

        Please do reply back. Also let me know how I can send pictures as well as excel sheet


        1. Nikhil-Are you judging your expected return from illustration example given in LIC portal? It shows how the plan works. But it never guarantees that you receive either 6% or 10%. Please provide me the term, premium, MSA and the LA rate you considered to calculate the maturity amount.

          1. Nikhil Kulkarni

            Dear Sir

            I am trying to correlate the LIC chart values v/s actual returns and pleasantly surprised to see the actual returns are better than highest projected returns.

            It actually means LIC Jeevan Saral has potential to provide much higher returns than most of the policies. Probably equal or more than old Jeevan Shree which had guaranteed returns of 75 per thousand for all years .

            Requesting your valuable opinion on the same



            1. Nikhil-Don’t through arrows at AIR. Give me an example like the insured age, term of plan, premium, MSA and LA you considered for calculation. Then show me how your claim of more than 10% is TRUE.

              1. Nikhil Kulkarni

                Dear Sir

                Following are the details

                Age of entry 35 years

                Policy term 25 years

                Mode of premium Yearly

                Amount of premium 4704

                LA 98000

                At the end of 10 years guarantee returns 43360

                Variable returns (non guarantee) @ 6% 7000

                Variable returns (non guarantee) @ 10% 18000

                It is the example mentioned on LIC website

                Do you need any further details

                In case you tell me how to insert pictures or excel sheet I can provide it in more systematic way. In case I can’t insert these things then you can check this example on LIC website by Googling jeevan Saral benefit illustration

                Writing only can lead to miscommunication and misunderstanding.



                1. Nikhil-The problem for you is that you dont know the difference between ILLUSTRATIVE example to actual returns… What more can I say?? It is illustrative example but not real one. I need the details of policyholder of whom you are claiming that returns will be more than 10%.

  8. Hi Sir,

    I am also trapped in one LIC money back policy as is the case with millions of Indians.

    The Policy term is 25 Years. S.A. is Rs. 1,00,000/- Premium is Rs. 5,413/- P.A.

    I have paid the premium for 9 years. (Hence, my investment is Rs. 48,717/- ). Premium for 10th year is due.

    I received 15% of S.A. in 2012 ie rs. 15,000/- as survival benefits.

    I am confused as to should I continue it further or surrender it right now. I checked at LIC website. However, I couldn’t find anything about Surrender Value calculation. Policy document also does not contain anything about surrender value factor calculation or table. I am interested to know approx. how much amount I will be able to get back.

    Pls. help


  9. Dear Sir,

    while trying to surrender my Jeevan Saral policy the agent explained me a logic that the this plan has recently completed 10 years so it is better to wait for few more years to get full benefit (more Loyalty Additions) from this policy.

    Is this a valid reason?


  11. Hi,

    When LIC credits the bonus in the user’s account? I am checking it after logging on LIC portal. But it’s not showing credited for this year.


      1. Thanks for your reply.
        I am not checking in the Bank Account but checking on LIC Portal. For the earlier years, I can see the Vested Bonus amount. But for the last year, I can’t see any amount credited.
        So my query was related to that when LIC credits the bonus amount?

        Thanks Again

  12. sir,I’ve earlier contacted u for some clarifications regarding some other plans.Now,I want to know that I’ve taken jivan saral in 4/2010 with a monthly premium of 1020/. Hence now 5 years has been passed,going by the very poor loyality addition,as the policy has of 16 years maturity,I’ve decided to surrender it.But the LIC is only paying me 50,000/ surrender value.My deposited amount in it 68340/.so,I m in confusion,whether to go for partial surrender and keep running the policy for 250/ per month.Then what will b the accumulated amount ,Lic will return me the partial surrender amount or they will it on return on maturity.whether to continue the policy for another 4 years,then surrender it with whatever I will get loyality addition.Please advice,Thanking u.

      1. it’s full srrender or partial surrender,because i need the surrendersd value 4 years later to cater my son higher education,who will b at that time should pass class 10.

  13. Sir, I had taken Jeevan Shree II (162) in 2008 with SA 5,00,000 and Policy Term of 25 and premium paying term 16 Years, Please suggest what will be return should i continue or exit. If possible can you please tell me approximate amount i will get at end of maturity.
    Thanks a lot sir.

  14. sir,

    Respected sir i have a jeevan saral 165 plan of mtly premium 2042 from dt 5th sep 2012 for 16 year policy term. so what amount of maturity value l will recieved after 16 year term complite on 2028. please please tell me.

  15. Hi Raj, Thanks for the article. Out of ignorance I opted for Jeevan Saral in 2013 with an Annual premium of 36,030 for maturity of 35 years with a sum assured of 7,50,000. Later I came to know that Term insurance would be a better option of insuring the life with less premium. And i also came to know that the rate of return would be merely 5-6%, just the return what you get from Savings Account (Yes Bank). Please let me know whether to continue with the policy ( as i paid for 3 years till now – 1,08,090) or to exit. If to continue please also let me know at what point should i exit the policy. Thanks in advance for your answer. Have a great day

      1. Raj – thanks for your response and for valuable suggestion. By the end of 5 years I would be paying 1,80,150. If I exit at that point how much will be my Surrender Value on an average I will get. Thanks in advance

  16. Dear, I am having policy JEEVAN SARAL of LIC since last three year. premium amount is 35500 p.a.
    My question is it worth to keep it continue or not. what will be approx. return , I am going to get at the end of 16 years.
    Pls suggest

  17. Dear Basu, I have invested in LIC Money Plus Growth policy (180) in 2007 to 2013 … is it worth to continue or close this.



  18. Hi.
    Please tell me . The 5 new rule of insurance launch by IRDA on 31,march-015 is applicable on my exiting policy . That is essued in 2012.
    please tell me i am confused.
    Thank you.
    yusuf khan

  19. Wonder how the most “Safe and Secured” insurance giant in India keeps same bonus rates for years. Does LIC really manages people’s hard earned savings? Or it destroys their wealth?

    CAGR on most of their widely propagated plans works out to be less than 4%. With this pathetic rate, how an average investor is going to secure his future when retail inflation is more than 8%?

    A worried investor who was also a blind follower of LIC till some months ago.


    1. Ritesh-First culprit in this endowment plan is the expenses. These endowment or traditional plans are most dangerous than ULIPs. Second, LIC always act like a scapegoat to Govt’s disinvestment policy. The recent one is 86% of buying in Indian Oil.

  20. Hi Basu,

    Can you please provide the bonus rates for Jeevan Saral as well. Also, if possible please share a example to calculate the maturity amount as well for same.

  21. Hi Sir,

    I took Jeevan Anand (old) policy in 2009 Sep..SA is 500000..can you please explain how they calculated the bonus for this? I know the actual bonus available form the LIC web site..but would like to see how they will be useful to others as well..


    1. Ram-Bonus for Jeevan Anand will be per Rs.1,000 Sum Assured. Let us say for example, LIC declared Rs.50 as a bonus then for Rs.5,00,000 it will be (Rs.50*Rs.5,00,000)/Rs.1,000=Rs.25,000. This will be for a year. Like this, they will declare and go on add up to your policy period and finally (at maturity or at death) they pay with you along with sum assured.

      1. Thanks for explaining this Basavaraj..

        So if had a 20 year policy say money back plan 75 and in 2014 the bonus is showing as 35000 and If SA is 300000 then in 2015 my bonus will be (39*300000)/1000 +35000 = 46700. Is this how bonus gets incremented year by year ?

          1. Hi, i have a policy Jeevan Shree 1(162) for 500000/- SA since 2004 Prmium paying 16, Maturity term is 25. as per your calculations my bonus needs to be more than 200000/- but it is showing it as 101000/- only. have i calculated it wrong or something went wrong?

              1. Since 2008 the average for this policy is 50 per 1000/- based on your calculation(Rs.50*Rs.5,00,000)/Rs.1,000=Rs.25,000) it is 25000/- per year and its just parked without earning anymore bonus on bonus. so for last 7 years(since 2008) its summed up to 7*25000=175000/- . but i have the policy since 2004 so i thought they would have given around the same 50 per 1000.for the years 2005 to 2007, 3 years i put 75000/- , so it should be around 250000/- right? but i am seeing 101000/- only in my account. Is there something very wrong in my calculation? or how should i be calculating?

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