Bonus rates of LIC of India for the year 2018-19 has been declared for all its participating policies. Loyalty Addition (LA) of all the eligible policies are declared too, including Jeevan Saral (Plan No. 165). Loyalty addition in Jeevan Saral Policy is available when the policy exit through death, maturity or surrender after 10 years.
Loyalty Addition (LA) in Jeevan Saral (Plan No. 165) of LIC of India
Loyalty Addition (LA) in Jeevan Saral policy depends on the duration of the policy completed with full sum assured and, the annual premium band of the policy. An annual premium band can be calculated on the basis of monthly premium in Jeevan Saral. Higher the premium, higher is the loyalty addition in Jeevan Saral. In the case of the partial surrender annual premium band must be calculated at a reduced premium.
This year loyalty addition declared in Jeevan Saral is more than the loyalty addition declared last two years in all premium bands, you can compare both the rates are given below. Increased bonus rates are marked green in below chart.
Loyalty addition rates declared previous year (2016-2017) are given below
Loyalty addition rates declared previous year (2015-2016) are given below
For the purpose of determining the rate of loyalty addition for exits by death or surrender or maturity the duration in completed years for which premiums have been paid shall be considered. In the case of partial surrender in policy, the benefits will be proportionately reduced.
How to calculate Loyalty addition in Jeevan Saral
There are two types of Sum Assured in Jeevan Saral a) Death Sum Assured, b) Maturity Sum Assured. To calculate loyalty addition in your policy refer your policy bond to know the Maturity Sum Assured. Also refer premium of your policy and calculated annual premium of your policy (if other than yearly Mode).
Formula to calculate loyalty addition: (Maturity Sum Assured/1000)* Rate of Loyalty Addition as per annual premium band
Note: Maturity Sum Assured on policy bond is written according to the term you have chosen at proposal stage. It will not be used to calculate loyalty addition while surrendering the policy before term.
Under Plan 165, provided at least 10 years premiums have been paid under the policy and policy has been in force for at least 10 years, the loyalty addition is payable on exits by maturity or death or surrender per thousand maturity sum assured for the complete duration for which the premiums have been paid.
Where a policyholder discounts the policy within one year preceding the date of maturity, the policy will be eligible for Loyalty Additions provided other qualifying conditions are satisfied