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Home »  Customer Services »  Bonus Information »  How To Calculate »  How to Calculate

 LIC(Intl) declares bonus after the valuation as at the end of every financial year. The bonus is vested under the policies on a policy completed year basis, i.e. the bonus declared in the year 2004 is payable to the policies which are issued on or before  the year 2003.  Hence, to calculate the bonus vested under a policy as on 31/12/2004, the number of completed years as on 31/12/2004 should be calculated and then the bonus for the years has to be added.

Eg. Date of Commencement 28/08/1999
  First Unpaid Premium Due 28/08/2005
  SA  US$ 10000 Plan   PEN

The bonus vested as on 31/12/2004 is calculated as follows

Total number of completed policy years as at 31/12/2004 is 5 (28/08/1999 to 28/08/2004).

In case any payment arises under the policy during the year, due to maturity, death or Surrender, before the declaration of bonus for the year 2005, an interim bonus will be added, at the rate of bonus declared in the previous years.

The policy will be eligible for bonus from the 2000 year valuation onwards.

So the vested bonus calculated under the policy as at the end of each year will be as follows:

Valuation Year Bonus for the Year Amount Cumulative Amount
31.12.2000 20x10000/1000 200 200
31.12.2001 20x10000/1000 200 400
31.12.2002 21x10000/1000 210 610
31.12.2003 22x10000/1000 220 830
31.12.2004 23x10000/1000 230 1060

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