Life Insurance - Which policy qualifies for Bonus eligibility?

Bonus is payable on all profits' policies of LIC.

  • The amount of bonus for each Rs.1000/- sum assured in respect of Whole Life with Profits' policies is 125 percent of corresponding bonus amount for Endowment with Profits' Assurance policies.
  • Bonus is payable once a policy has been in force for the full sum assured for a period of 5 years from the date of commencement of the policy.
  • However, in case of a death claim within 5 years bonus is payable if the policy is in force for the full sum assured. Basically, a policy must be kept in full force for at least 5 years for it to be eligible for bonus unless a death claim were to arise within this period as a result of the death of a policyholder.