Endowment Plans with profits like Jeevan Anand (815), New Endowment Plan (814), Jeevan Labh (836), are eligible to get share of profit earned by insurance company in the form of bonuses. These bonuses keep accumulating during policy term and known as vested bonus. The vested bonuses are scheduled to be paid in case of maturity or death.
In case of LIC, these bonuses are of two types:
It is main form of bonus which is declared per thousand of sum assured for each financial year during policy term and keeps accumulating. This accumulated bonus can be seen policy holder's account as vested bonus.
To understand this bonus, bonus history of LIC new Endowment plan (814) which was launched in year 2014 is listed below.
|Year||Bonus per 1000 of Sum Assured|
|12-15 Years Term||16-20 Years Term||21-35 Years Term|
To understand vested bonus, let's take an example of New Endowment policy (814) with sum assured as 10,00,000, policy term as 21 and commencement year as 2014. As this policy progresses, year-wise bonus keeps adding, following table indicates bonus up to 2016.
|Policy Year||Bonus Rate (per 1000 of Sum Assured)||Bonus|
So, above policy has accumulated Rs. 1,44,000 in three years (2014-16) and it is known as vested bonus and it will keep accumulating bonus for each year during policy year.
Final Addition Bonus (FAB) or terminal bonus is second type of bonus which is given to policy holders by insurance company from its earned profit. It is onetime bonus associated with year of maturity or death provided that policy has completed 15 year at time of death or maturity.
In case of maturity or death claim under endowment plans, total vested bonus is sum of simple reversionary bonus + Final Addition Bonus.
Wrote : 30-06-2017 11:45:36
How do I find the actual accrued bonus for a policy on current date ?
Replied : 01-07-2017 20:01:29
You can register your policy at lic website to create policy holder account, once you log in to your account, you will be able to see bonus and other details related to your policy. Please note, new registration is temporarily disabled, your can try it after some time.