LIC Bonus Rates Explained: Comprehensive Analysis

LIC Bonus Rates Explained: Comprehensive Analysis

Introduction

In the realm of life insurance, the annual declaration of bonus rates by the Life Insurance Corporation of India (LIC) is a much-anticipated event, not just for the millions of policyholders but also for financial experts and market observers. For the fiscal year 2022-2023, LIC's announcement of the bonus rates has again brought into focus the significance of these figures in shaping the financial planning of countless individuals who rely on LIC for securing their future.

LIC, as India's premier insurance conglomerate, holds a place of reverence and trust in the hearts of its customers. The corporation's policies are not just financial instruments but are often seen as integral components of one's financial security. The bonus rates declared by LIC, thus, are more than just numbers; they are indicators of the corporation's financial health, investment acumen, and commitment to sharing its success with its policyholders.

Understanding the Essence of LIC Bonuses

At the core, LIC bonuses represent the share of profits that the corporation allocates to its policyholders. These bonuses are added to the policyholder’s benefits and are payable upon the maturity of the policy or as part of the death claim. The significance of these bonuses is profound, as they enhance the returns on the premiums paid, making traditional life insurance policies not only tools for risk coverage but also for investment.

The computation of these bonus rates is a complex process, deeply intertwined with LIC’s investment performance and overall profitability. Each year, LIC undertakes a thorough valuation to assess its financial standing. Based on this assessment, the corporation declares its bonus rates. This process underscores LIC's commitment to transparency and accountability in its operations.

A Glimpse into LIC Bonus Rates for 2022-2023

The bonus rates for the year 2022-2023 cover a diverse range of plans, each with its specific rate based on the policy term and the sum assured. These rates are applicable for policies that are both currently active and open for new investments, as well as for older plans that are no longer available for new policyholders but are still operational.

For instance, the New Endowment Plan, a popular choice among policyholders, has varying rates for different combinations of policy terms and sum assured amounts. Similarly, the Single Premium Endowment Plan and the Moneyback Plans have their specific rates based on the aforementioned factors. The diversity in these rates illustrates the tailored approach LIC adopts to cater to the varying needs and expectations of its vast customer base.

The Calculation and Impact of LIC Bonuses

The method of calculating LIC bonuses is straightforward yet significant. It is based on the sum assured and the declared bonus rate. For example, a policy with a sum assured of Rs 10 lakh and a bonus rate of Rs 42 per Rs 1,000 sum assured would yield an annual bonus of Rs 42,000. This bonus accrues each year and is payable either at the policy’s maturity or upon a death claim.

What makes these bonuses particularly compelling is their role in the overall returns from LIC policies. For many policyholders, the annual bonus is a critical factor in their long-term financial planning, often shaping decisions related to education, retirement, and other major life events.

Exploring Different Types of LIC Bonuses

LIC bonuses come in various forms, each with its distinct characteristics and implications. The Simple Reversionary Bonus, for instance, is declared annually and adds to the policy’s value, payable at maturity. The Guaranteed Additions and the Final Maturity Bonus/Final Additional Bonus/Loyalty Addition are other forms of bonuses that play a significant role in enhancing the policy's value over time.

Final Additional Bonus (FAB) Rates for 2022-2023

An essential component of LIC’s bonus structure is the Final Additional Bonus (FAB), which is an extra payment made at the policy’s maturity. The FAB rates for 2022-2023, like the regular bonus rates, vary based on the policy term and the sum assured, further emphasizing the customized approach LIC adopts in its policy structuring.

The LIC bonus rates for 2022-2023 are not just figures on paper; they are a testament to the corporation’s enduring commitment to its policyholders. They reflect the trust millions of individuals place in LIC to secure their financial future. This detailed analysis aims to demystify these rates, offering clarity and insight into how they influence the returns on LIC policies. Understanding these rates is crucial for any LIC policyholder or potential investor, as it enables informed decision-making and strategic financial planning. As we delve deeper into the specifics of these bonus rates, their calculation, and their impact, it becomes evident that LIC's role in shaping the financial landscape of countless individuals is both profound and enduring.

In the vast and intricate world of insurance, LIC (Life Insurance Corporation of India) stands as a towering entity, especially in the Indian market. It's a name synonymous with trust, security, and long-term financial planning. The announcement of LIC bonus rates for the fiscal year 2022-2023 has been eagerly anticipated by policyholders and financial analysts alike. These bonus rates are a critical component of traditional insurance policies, significantly impacting the returns policyholders can expect on their investments.

LIC's bonus declaration is more than just a set of numbers. It's a reflection of the corporation's financial health, its investment strategies, and its commitment to policyholders. This comprehensive guide aims to delve into the depths of the LIC Bonus Rates for 2022-2023, offering a detailed look at the rates for various policies, how these bonuses are calculated, and their significance in the broader context of life insurance.

Understanding LIC Bonuses

Before we explore the specifics of the 2022-2023 bonus rates, it's crucial to understand what these bonuses represent and how they are formulated. In simple terms, a bonus in an LIC policy is a share of the profits generated by the Corporation’s life fund. These bonuses are declared annually and are added to the policyholder's benefits, payable on maturity or death claim.

The LIC bonus rates are determined based on the performance of LIC's investments and the overall profitability of its life fund. The Corporation conducts a yearly valuation to assess its financial standing and declares bonuses accordingly. These bonuses are a key attraction for traditional life insurance policies, as they enhance the returns on the premiums paid by policyholders.

LIC Bonus Rates for 2022-2023

For the fiscal year 2022-2023, LIC has announced varied bonus rates across different plans and policy terms. These rates are applicable for the valuation period from April 1, 2021, to March 31, 2022, and are based on the financial outcomes of this period.

Active Plans

The bonus rates for active plans, which are still open for new investments, vary based on the policy term and the sum assured. For instance:

  • New Endowment Plan: For a policy term of 12-15 years with a sum assured of less than Rs 1 lakh, the bonus rate is Rs 34 per thousand of sum assured. This rate increases for higher sum assured and longer policy terms.

  • Single Premium Endowment Plan: Here, the bonus rates range from Rs 37 to Rs 48 per thousand of sum assured, depending on the policy term and the sum assured amount.

  • Moneyback Plans and New Jeevan Anand Plan: These plans offer bonus rates that increase with the length of the policy term and the amount of sum assured.

Old Plans

For older plans, which are no longer available for new investments but are still active for existing policyholders, the bonus rates again vary. For example, the Whole Life type Plans offer a bonus rate of Rs 65 per thousand of sum assured for policies with a term of 20 years and a sum assured of less than Rs 1 lakh.

Calculating LIC Bonuses

The calculation of the LIC bonus is straightforward. It is based on the declared bonus rate and the sum assured of the policy. For example, if the bonus rate is Rs 42 per Rs 1,000 sum assured for a policy of Rs 10 lakh, the annual bonus would be calculated as follows:

(Rs42×Rs10,00,000)/Rs1,000=Rs42,000

This bonus accrues each year but is payable only at the time of policy maturity or upon a death claim.

Types of LIC Bonuses

LIC declares different types of bonuses:

  • Simple Reversionary Bonus: Accrues annually and is paid at maturity or death claim.

  • Guaranteed Additions: These are certain additions promised by LIC, irrespective of its yearly profits.

  • Final Maturity Bonus / Final Additional Bonus / Loyalty Addition: A one-time bonus paid at the maturity of the policy.

LIC Final Additional Bonus (FAB) Rates for 2022-2023

The Final Additional Bonus is an extra payment made at the time of policy maturity. These rates vary based on the policy term and the sum assured. For instance, for a policy term of 15 years and a sum assured up to Rs 25,000, the FAB rate might be Rs 0 per thousand of the sum assured. These rates increase with higher sums assured and longer policy terms.

Conclusion:

Navigating the Landscape of LIC Bonus Rates (2022-2023)

The declaration of LIC bonus rates for the fiscal year 2022-2023 is more than a routine financial update—it's a reflection of LIC's financial health and its commitment to its policyholders. These rates are crucial for millions who see their LIC policies not just as safety nets but also as vehicles of financial growth and stability. As we conclude this comprehensive overview of LIC's latest bonus rates, it's imperative to grasp the broader implications and the strategic importance of these figures.

The Strategic Importance of LIC Bonuses

For policyholders, the announced bonus rates represent potential growth in their investments. The bonuses, accumulated over the years, significantly enhance the maturity value or the death benefit of the policies. In essence, these bonuses are a crucial component of the returns on LIC policies, making them attractive as long-term investment options. The varied bonus rates across different plans and terms underscore LIC's commitment to catering to diverse financial needs and goals.

Understanding the Bonus Structure

The bonus structure of LIC is thoughtfully designed. The Simple Reversionary Bonus, which accrues annually but is payable at the end of the policy term, allows policyholders to benefit from LIC's annual profits. The Final Additional Bonus (FAB), a one-time benefit paid at the policy's maturity, is a reward for long-term policyholders, encouraging sustained investment in LIC policies. This structure not only boosts the total corpus accumulated but also aligns with the long-term financial aspirations of the policyholders.

Long-Term Financial Planning with LIC Bonuses

For many, the announcement of LIC bonus rates is a pivotal event in their financial calendar. These rates directly impact their long-term financial planning, be it saving for retirement, children's education, or other major life goals. The bonuses, when viewed as part of a broader financial plan, can significantly contribute to achieving these objectives. Policyholders, therefore, must understand how these bonuses fit into their overall financial strategy.

LIC's Role in India's Financial Ecosystem

LIC's bonus rates also reflect its role in India's broader financial ecosystem. As a major investor in various sectors of the economy, LIC's financial performance, indicated partly by its ability to declare bonuses, has broader economic implications. Thus, the declared bonus rates are not just vital for policyholders but are also indicators of the financial health and stability of a key player in India's financial landscape.

Navigating the Future with LIC

Looking ahead, policyholders need to stay informed about the trends in LIC's bonus rates. This knowledge is crucial for making informed decisions regarding policy renewals, purchases, or adjustments in their financial planning. Future prospects of LIC's bonus rates hinge on several factors including market performance, economic policies, and LIC's investment strategies.

The Road Ahead for Policyholders

For existing and potential policyholders, a detailed understanding of LIC's bonus rates is essential. It helps in making informed decisions about choosing the right policies, understanding the returns on their investments, and aligning their insurance choices with their long-term financial goals. This knowledge empowers them to optimize their investments in LIC policies, ensuring they make the most of the opportunities these bonuses present.

Final Thoughts

In conclusion, the LIC bonus rates for 2022-2023 are a critical aspect of financial planning for millions. These rates not only signify LIC's promise to share its financial success with its policyholders but also play a pivotal role in shaping their financial future. As policyholders navigate through the complexities of financial planning, understanding and leveraging these bonus rates can lead to more informed and fruitful investment decisions. LIC continues to stand as a pillar of stability and reliability in India's financial landscape, and these bonus rates reaffirm its commitment to serving the financial needs and aspirations of its vast customer base.

The LIC bonus rates for 2022-2023 reflect the corporation's financial health and its ability to generate profits from its investments. For policyholders, these rates are a critical factor in determining the overall returns from their insurance policies. Understanding these rates, how they are calculated, and their impact on insurance returns is essential for making informed decisions about life insurance investments.

As LIC continues to be a dominant player in the Indian insurance market, its annual bonus declarations remain a matter of significant interest and importance to millions of policyholders. By staying informed about these rates and their implications, policyholders can better manage their insurance portfolios and plan for their financial futures.

Introduction

In the realm of life insurance, the annual declaration of bonus rates by the Life Insurance Corporation of India (LIC) is a much-anticipated event, not just for the millions of policyholders but also for financial experts and market observers. For the fiscal year 2022-2023, LIC's announcement of the bonus rates has again brought into focus the significance of these figures in shaping the financial planning of countless individuals who rely on LIC for securing their future.

LIC, as India's premier insurance conglomerate, holds a place of reverence and trust in the hearts of its customers. The corporation's policies are not just financial instruments but are often seen as integral components of one's financial security. The bonus rates declared by LIC, thus, are more than just numbers; they are indicators of the corporation's financial health, investment acumen, and commitment to sharing its success with its policyholders.

Understanding the Essence of LIC Bonuses

At the core, LIC bonuses represent the share of profits that the corporation allocates to its policyholders. These bonuses are added to the policyholder’s benefits and are payable upon the maturity of the policy or as part of the death claim. The significance of these bonuses is profound, as they enhance the returns on the premiums paid, making traditional life insurance policies not only tools for risk coverage but also for investment.

The computation of these bonus rates is a complex process, deeply intertwined with LIC’s investment performance and overall profitability. Each year, LIC undertakes a thorough valuation to assess its financial standing. Based on this assessment, the corporation declares its bonus rates. This process underscores LIC's commitment to transparency and accountability in its operations.

A Glimpse into LIC Bonus Rates for 2022-2023

The bonus rates for the year 2022-2023 cover a diverse range of plans, each with its specific rate based on the policy term and the sum assured. These rates are applicable for policies that are both currently active and open for new investments, as well as for older plans that are no longer available for new policyholders but are still operational.

For instance, the New Endowment Plan, a popular choice among policyholders, has varying rates for different combinations of policy terms and sum assured amounts. Similarly, the Single Premium Endowment Plan and the Moneyback Plans have their specific rates based on the aforementioned factors. The diversity in these rates illustrates the tailored approach LIC adopts to cater to the varying needs and expectations of its vast customer base.

The Calculation and Impact of LIC Bonuses

The method of calculating LIC bonuses is straightforward yet significant. It is based on the sum assured and the declared bonus rate. For example, a policy with a sum assured of Rs 10 lakh and a bonus rate of Rs 42 per Rs 1,000 sum assured would yield an annual bonus of Rs 42,000. This bonus accrues each year and is payable either at the policy’s maturity or upon a death claim.

What makes these bonuses particularly compelling is their role in the overall returns from LIC policies. For many policyholders, the annual bonus is a critical factor in their long-term financial planning, often shaping decisions related to education, retirement, and other major life events.

Exploring Different Types of LIC Bonuses

LIC bonuses come in various forms, each with its distinct characteristics and implications. The Simple Reversionary Bonus, for instance, is declared annually and adds to the policy’s value, payable at maturity. The Guaranteed Additions and the Final Maturity Bonus/Final Additional Bonus/Loyalty Addition are other forms of bonuses that play a significant role in enhancing the policy's value over time.

Final Additional Bonus (FAB) Rates for 2022-2023

An essential component of LIC’s bonus structure is the Final Additional Bonus (FAB), which is an extra payment made at the policy’s maturity. The FAB rates for 2022-2023, like the regular bonus rates, vary based on the policy term and the sum assured, further emphasizing the customized approach LIC adopts in its policy structuring.

The LIC bonus rates for 2022-2023 are not just figures on paper; they are a testament to the corporation’s enduring commitment to its policyholders. They reflect the trust millions of individuals place in LIC to secure their financial future. This detailed analysis aims to demystify these rates, offering clarity and insight into how they influence the returns on LIC policies. Understanding these rates is crucial for any LIC policyholder or potential investor, as it enables informed decision-making and strategic financial planning. As we delve deeper into the specifics of these bonus rates, their calculation, and their impact, it becomes evident that LIC's role in shaping the financial landscape of countless individuals is both profound and enduring.

In the vast and intricate world of insurance, LIC (Life Insurance Corporation of India) stands as a towering entity, especially in the Indian market. It's a name synonymous with trust, security, and long-term financial planning. The announcement of LIC bonus rates for the fiscal year 2022-2023 has been eagerly anticipated by policyholders and financial analysts alike. These bonus rates are a critical component of traditional insurance policies, significantly impacting the returns policyholders can expect on their investments.

LIC's bonus declaration is more than just a set of numbers. It's a reflection of the corporation's financial health, its investment strategies, and its commitment to policyholders. This comprehensive guide aims to delve into the depths of the LIC Bonus Rates for 2022-2023, offering a detailed look at the rates for various policies, how these bonuses are calculated, and their significance in the broader context of life insurance.

Understanding LIC Bonuses

Before we explore the specifics of the 2022-2023 bonus rates, it's crucial to understand what these bonuses represent and how they are formulated. In simple terms, a bonus in an LIC policy is a share of the profits generated by the Corporation’s life fund. These bonuses are declared annually and are added to the policyholder's benefits, payable on maturity or death claim.

The LIC bonus rates are determined based on the performance of LIC's investments and the overall profitability of its life fund. The Corporation conducts a yearly valuation to assess its financial standing and declares bonuses accordingly. These bonuses are a key attraction for traditional life insurance policies, as they enhance the returns on the premiums paid by policyholders.

LIC Bonus Rates for 2022-2023

For the fiscal year 2022-2023, LIC has announced varied bonus rates across different plans and policy terms. These rates are applicable for the valuation period from April 1, 2021, to March 31, 2022, and are based on the financial outcomes of this period.

Active Plans

The bonus rates for active plans, which are still open for new investments, vary based on the policy term and the sum assured. For instance:

  • New Endowment Plan: For a policy term of 12-15 years with a sum assured of less than Rs 1 lakh, the bonus rate is Rs 34 per thousand of sum assured. This rate increases for higher sum assured and longer policy terms.

  • Single Premium Endowment Plan: Here, the bonus rates range from Rs 37 to Rs 48 per thousand of sum assured, depending on the policy term and the sum assured amount.

  • Moneyback Plans and New Jeevan Anand Plan: These plans offer bonus rates that increase with the length of the policy term and the amount of sum assured.

Old Plans

For older plans, which are no longer available for new investments but are still active for existing policyholders, the bonus rates again vary. For example, the Whole Life type Plans offer a bonus rate of Rs 65 per thousand of sum assured for policies with a term of 20 years and a sum assured of less than Rs 1 lakh.

Calculating LIC Bonuses

The calculation of the LIC bonus is straightforward. It is based on the declared bonus rate and the sum assured of the policy. For example, if the bonus rate is Rs 42 per Rs 1,000 sum assured for a policy of Rs 10 lakh, the annual bonus would be calculated as follows:

(Rs42×Rs10,00,000)/Rs1,000=Rs42,000

This bonus accrues each year but is payable only at the time of policy maturity or upon a death claim.

Types of LIC Bonuses

LIC declares different types of bonuses:

  • Simple Reversionary Bonus: Accrues annually and is paid at maturity or death claim.

  • Guaranteed Additions: These are certain additions promised by LIC, irrespective of its yearly profits.

  • Final Maturity Bonus / Final Additional Bonus / Loyalty Addition: A one-time bonus paid at the maturity of the policy.

LIC Final Additional Bonus (FAB) Rates for 2022-2023

The Final Additional Bonus is an extra payment made at the time of policy maturity. These rates vary based on the policy term and the sum assured. For instance, for a policy term of 15 years and a sum assured up to Rs 25,000, the FAB rate might be Rs 0 per thousand of the sum assured. These rates increase with higher sums assured and longer policy terms.

Conclusion:

Navigating the Landscape of LIC Bonus Rates (2022-2023)

The declaration of LIC bonus rates for the fiscal year 2022-2023 is more than a routine financial update—it's a reflection of LIC's financial health and its commitment to its policyholders. These rates are crucial for millions who see their LIC policies not just as safety nets but also as vehicles of financial growth and stability. As we conclude this comprehensive overview of LIC's latest bonus rates, it's imperative to grasp the broader implications and the strategic importance of these figures.

The Strategic Importance of LIC Bonuses

For policyholders, the announced bonus rates represent potential growth in their investments. The bonuses, accumulated over the years, significantly enhance the maturity value or the death benefit of the policies. In essence, these bonuses are a crucial component of the returns on LIC policies, making them attractive as long-term investment options. The varied bonus rates across different plans and terms underscore LIC's commitment to catering to diverse financial needs and goals.

Understanding the Bonus Structure

The bonus structure of LIC is thoughtfully designed. The Simple Reversionary Bonus, which accrues annually but is payable at the end of the policy term, allows policyholders to benefit from LIC's annual profits. The Final Additional Bonus (FAB), a one-time benefit paid at the policy's maturity, is a reward for long-term policyholders, encouraging sustained investment in LIC policies. This structure not only boosts the total corpus accumulated but also aligns with the long-term financial aspirations of the policyholders.

Long-Term Financial Planning with LIC Bonuses

For many, the announcement of LIC bonus rates is a pivotal event in their financial calendar. These rates directly impact their long-term financial planning, be it saving for retirement, children's education, or other major life goals. The bonuses, when viewed as part of a broader financial plan, can significantly contribute to achieving these objectives. Policyholders, therefore, must understand how these bonuses fit into their overall financial strategy.

LIC's Role in India's Financial Ecosystem

LIC's bonus rates also reflect its role in India's broader financial ecosystem. As a major investor in various sectors of the economy, LIC's financial performance, indicated partly by its ability to declare bonuses, has broader economic implications. Thus, the declared bonus rates are not just vital for policyholders but are also indicators of the financial health and stability of a key player in India's financial landscape.

Navigating the Future with LIC

Looking ahead, policyholders need to stay informed about the trends in LIC's bonus rates. This knowledge is crucial for making informed decisions regarding policy renewals, purchases, or adjustments in their financial planning. Future prospects of LIC's bonus rates hinge on several factors including market performance, economic policies, and LIC's investment strategies.

The Road Ahead for Policyholders

For existing and potential policyholders, a detailed understanding of LIC's bonus rates is essential. It helps in making informed decisions about choosing the right policies, understanding the returns on their investments, and aligning their insurance choices with their long-term financial goals. This knowledge empowers them to optimize their investments in LIC policies, ensuring they make the most of the opportunities these bonuses present.

Final Thoughts

In conclusion, the LIC bonus rates for 2022-2023 are a critical aspect of financial planning for millions. These rates not only signify LIC's promise to share its financial success with its policyholders but also play a pivotal role in shaping their financial future. As policyholders navigate through the complexities of financial planning, understanding and leveraging these bonus rates can lead to more informed and fruitful investment decisions. LIC continues to stand as a pillar of stability and reliability in India's financial landscape, and these bonus rates reaffirm its commitment to serving the financial needs and aspirations of its vast customer base.

The LIC bonus rates for 2022-2023 reflect the corporation's financial health and its ability to generate profits from its investments. For policyholders, these rates are a critical factor in determining the overall returns from their insurance policies. Understanding these rates, how they are calculated, and their impact on insurance returns is essential for making informed decisions about life insurance investments.

As LIC continues to be a dominant player in the Indian insurance market, its annual bonus declarations remain a matter of significant interest and importance to millions of policyholders. By staying informed about these rates and their implications, policyholders can better manage their insurance portfolios and plan for their financial futures.

FAQs 🤔

1. What are LIC Bonus Rates?

Answer: LIC Bonus Rates are additional amounts declared by the Life Insurance Corporation of India, based on its annual profits. These rates are applied to various LIC policies, adding to the policy's value. They are calculated per thousand of the Sum Assured and are paid at the time of policy maturity or on the policyholder's death.

2. How are LIC Bonus Rates for 2022-2023 calculated?

Answer: LIC Bonus Rates for 2022-2023 are calculated based on the sum assured of the policy. For instance, if the bonus rate is Rs 40 per thousand of sum assured and your policy's sum assured is Rs 1 lakh, the bonus for that year would be Rs 4,000. These rates vary across different policies and terms.

3. Are LIC Bonus Rates guaranteed?

Answer: While LIC has a history of consistently declaring bonuses, they are not guaranteed. These bonuses are declared from the valuation surpluses and depend on LIC's financial performance. However, certain types of bonuses like Guaranteed Additions are pre-decided and guaranteed.

4. Can I receive the LIC bonus annually?

Answer: No, the LIC bonus accrues annually but is not paid out each year. It is added to the policy and paid at the time of policy maturity or on the occurrence of the death claim. The bonus accumulates each year but is only payable at the end of the policy term.

5. How does the Final Additional Bonus (FAB) work in LIC policies?

Answer: The Final Additional Bonus (FAB) is a one-time bonus paid at the maturity of a policy, provided the policy term is a minimum of 15 years. It varies based on the policy term and sum assured. The FAB rates increase with the increase in the sum assured and the duration of the policy term. This bonus is in addition to the regular bonuses accrued over the policy term.

1. What are LIC Bonus Rates?

Answer: LIC Bonus Rates are additional amounts declared by the Life Insurance Corporation of India, based on its annual profits. These rates are applied to various LIC policies, adding to the policy's value. They are calculated per thousand of the Sum Assured and are paid at the time of policy maturity or on the policyholder's death.

2. How are LIC Bonus Rates for 2022-2023 calculated?

Answer: LIC Bonus Rates for 2022-2023 are calculated based on the sum assured of the policy. For instance, if the bonus rate is Rs 40 per thousand of sum assured and your policy's sum assured is Rs 1 lakh, the bonus for that year would be Rs 4,000. These rates vary across different policies and terms.

3. Are LIC Bonus Rates guaranteed?

Answer: While LIC has a history of consistently declaring bonuses, they are not guaranteed. These bonuses are declared from the valuation surpluses and depend on LIC's financial performance. However, certain types of bonuses like Guaranteed Additions are pre-decided and guaranteed.

4. Can I receive the LIC bonus annually?

Answer: No, the LIC bonus accrues annually but is not paid out each year. It is added to the policy and paid at the time of policy maturity or on the occurrence of the death claim. The bonus accumulates each year but is only payable at the end of the policy term.

5. How does the Final Additional Bonus (FAB) work in LIC policies?

Answer: The Final Additional Bonus (FAB) is a one-time bonus paid at the maturity of a policy, provided the policy term is a minimum of 15 years. It varies based on the policy term and sum assured. The FAB rates increase with the increase in the sum assured and the duration of the policy term. This bonus is in addition to the regular bonuses accrued over the policy term.

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