Final Additional Bonus for LIC Policies (FAB)

Final Additional Bonus (FAB) is an additional bonus which is paid in LIC policies, other than the simple reversionary bonus. Final Additional Bonus is paid only once in the policies at the time of Maturity claim or discounted claim or death claim. The final additional bonus depends upon the sum assured in policy and term of the policy. In other words, the longer-term of the policy, the higher will be the FAB. Bonus rates for LIC of India policies are declared on 17/09/2020. To know about Loyalty Addition in Jeevan Saral please click on the link.

LIC of India’s plans are divided into groups as per the type of plans for declaring bonuses as per their conditions. All the plans of LIC in which the Final Additional Bonus (FAB) is payable are divided into different groups according to their eligibility for FAB. Though we have given FAB for some groups only.

Final Additional Bonus in Plans of Groups 1, 2, 11, 12 and 13

Plans in group 1 are Whole Life type (Plans 2, 5, 6, 8, 10, 28 (Before Conversion), 35, 36, 37, 38, 49,77,78, 85 & 86). Group 2 are Endowment type (Plans 14, 17, 27 (After Conversion), 28 (After Conversion), 34, 39 40, 41, 42, 50, 54, 79, 80, 81, 84, 87, 90, 91, 92, 95, 101, 102, 103, 109, 110 & 121). Next group 11 are Jeevan Mitra (Double Cover plan), Jeevan Saathi (Plans 88 & 89). Similarly, group 12 is Jeevan Mitra (Triple Cover Plan: Plan 133 ) and in group 13 is Limited Payment Endowment (Plan 48)

(#) In the case of death claims under Single Premium / Fully Paid-up Limited Premium Payment policies, the number of years in the first column indicates the number of policy years elapsed inclusive of the policy year in which the death takes place.

FAB in Plans of Group 7 (Money Back)

Plans in group 7 are Money Back Assurances (Plans 75 & 93)

** Duration = Policy anniversary following date of claim minus Date of commencement

FAB in Plans of Group 10 (Jeevan Surabhi)

Plans in group 10 are Jeevan Surabhi (Plans 106, 107 & 108)

** Duration = Policy anniversary following date of claim minus Date of commencement

FAB in Plans of Group 19 (Jeevan Anand, Plan 149)

Plans in group 19 is Jeevan Anand (Plan 149)

FAB in Plans of Group 30 (Jeevan Bharti)

Plans in group 30 is Jeevan Bharti (Plan 160)

Not all the policies are eligible for FAB, only policies which are participating in profit are eligible for FAB. The FAB totally depends upon the experience of LIC ie surplus made by LIC of India. Mostly the policies having more than 15 years of policy term are eligible for FAB. The Quantum of the Final additional bonus also depends upon the sum assured in policy, the higher the sum assured more the FAB.

Other Important conditions related to Final Additional Bonus (FAB)

1. Policies with the mode of payment of premiums other than yearly are deducted from maturity claim. In other words, this deduction is made to give full FAB benefits to the policyholders.
2. Multi-purpose policies in respect of death claims, the Final (Additional) Bonus will be paid only at the end of the original term along with the Reversionary Bonus. Though policy must fulfill all other terms and conditions.
3. Where a non-participating policy is altered to a participating policy. The final (Additional) Bonus is paid as per the date of alteration.
4. Convertible, Whole Life Policy converted to With Profit Endowment Policy after 5 years, the period for Final (Additional) Bonus will be taken from the date of conversion. In respect of Convertible Whole life With Profit Policy (Plan 28). The period will be taken from the date of commencement of the policy.
5. Marriage Endowment and Jeevan Chhaya policies, in respect of death claim, the final additional bonus will be paid at the end of the original term along with reversionary bonuses subject to other qualifying conditions mentioned above.
6. Where a policyholder discounts the policy within one year preceding the date of maturity, the policy will be eligible for Final (Additional) Bonus provided other qualifying conditions are satisfied.
7. Visit the LIC of India website for detailed circular.

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