What are the final additional bonus rates for LIC policies in 2026?

The best LIC policy in 2026 depends entirely on your primary financial goal, whether it is pure life protection, guaranteed savings, or regular lifetime income.

🛡️ Pure Protection

• LIC New Tech-Term
  • Type: Pure Term Insurance
  • Best For: Maximum coverage at the lowest cost
  • Why it works: Offers high financial security for your family without mixing savings.

💰 Savings & Lifetime Income

• LIC Jeevan Utsav
  • Type: Whole Life Insurance
  • Best For: Regular guaranteed flexi-income
  • Why it works: Provides a 10% annual survival benefit and lifelong coverage.

📈 Market-Linked Growth

• LIC Index Plus
  • Type: Unit-Linked Insurance Plan (ULIP)
  • Best For: Market returns combined with life cover
  • Why it works: Links your investment to index-based funds for long-term wealth building.

🏖️ Retirement Planning

• LIC New Jeevan Shanti
  • Type: Deferred Annuity / Pension
  • Best For: Guaranteed post-retirement cash flow
  • Why it works: Secures a fixed, predictable income stream at a single premium.

The Final Additional Bonus (FAB)—often called a terminal bonus—is a one-time extra payout given by the Life Insurance Corporation of India (LIC) when a participating life insurance policy ends due to maturity, surrender, or death.

Key Facts About LIC's Final Additional Bonus

• Not Guaranteed: The FAB is not fixed. It depends entirely on the profits and actuarial surplus earned by LIC during financial evaluations.
• Minimum Term Required: It is generally paid only for policies that have been active and in force for 15 years or more.
• Scaling Rates: The bonus amount increases for longer policy durations (such as 20, 25, or 35+ years) and higher sum assured slabs (typically grouped above or below ₹2,00,000, with recent updates adding higher slabs for ₹5 lakh and ₹10 lakh).
• Exclusions: The FAB is not payable on reduced paid-up policies where regular premium payments were stopped before maturity, or in cases of suicide exclusions.
• Calculation: It is calculated per ₹1,000 of the basic sum assured using the specific rate declared by LIC for that policy year and term duration. You can estimate potential returns using resources like an LIC Bonus Calculator.

LIC New Jeevan Anand is a traditional insurance plan that combines savings with lifelong protection, making it a decent choice for conservative buyers, but it offers relatively low investment returns. You can read a detailed overview on Policybazaar.

How the Policy Works

• Dual Benefit: It acts as an endowment plan during the policy term and a whole-life plan afterward.
• Maturity Payout: If you survive the policy term, you receive the basic sum assured plus accumulated bonuses.
• Lifelong Cover: Even after the maturity payout, life cover continues for the rest of your life without extra premium payments.
• Death Benefit: If you pass away during the term, your nominee receives a death payout. If you pass away after maturity, the basic sum assured is paid out again.

The Advantages

• Guaranteed Protection: You get life cover that never truly expires as long as the policy remains active.
• Tax Savings: Premiums qualify for tax deductions under Section 80C, and maturity proceeds can be tax-free under Section 10(10D).
• Loan Facility: You can borrow money against the policy after it builds a surrender value.

The Drawbacks

• Low Returns: The estimated return rate is usually around 5% to 5.5% per year because part of your money pays for the lifelong risk cover.
• Uncertain Bonuses: Profits depend on bonuses declared by LIC, which are not legally guaranteed.
• Better Alternatives Exist: Financial experts often note that buying a cheap pure term insurance plan for protection and investing savings separately in instruments like the Public Provident Fund (PPF) or mutual funds can yield higher, inflation-beating returns.

The Final Additional Bonus (FAB)—also called the terminal bonus—for the LIC Jeevan Anand Plan (Table 149) is an extra one-time amount paid by LIC at the time of policy maturity or death, depending on how long the policy has run.

How Final Additional Bonus Works

• One-Time Payout: It is paid only once when the policy term ends or on earlier death, provided the policy has run for a minimum required period.
• Rate Application: It is declared per ₹1,000 of the Basic Sum Assured.
• Varying Rates: The amount depends heavily on the policy term and the size of the sum assured.

Estimated FAB Trends for Plan 149

• Shorter Terms (15 to 19 years): For a sum assured above ₹2 lakh, the average FAB typically ranges between ₹40 and ₹70 per ₹1,000 sum assured. For a sum assured below ₹2 lakh, it may drop to ₹20 to ₹40 per ₹1,000.
• Longer Terms (20+ years) & High Sum Assured: Higher FAB rates generally range from ₹75 to ₹100+ per ₹1,000 sum assured, depending on LIC's valuation and surplus profit declarations for that specific year.

The Final Additional Bonus (FAB) for LIC New Jeevan Anand (Plan 815) is a one-time special bonus paid at maturity or death, and it depends on the policy term and the year of claim.

How Final Additional Bonus Works

• One-Time Payout: It is not added every year. LIC declares it as a lump sum based on its valuation and financial performance.
• Eligibility: The policy must run for a specific minimum term and remain in full force (active with all premiums paid).
• Exclusions: Paid-up or surrendered policies generally do not qualify for a Final Additional Bonus.

Rates and Calculation

• Per 1,000 Sum Assured: LIC declares FAB rates per ₹1,000 of the Basic Sum Assured (BSA) depending on the chosen policy duration (e.g., higher terms like 20 to 35 years attract distinct declared rates).
• Variable Nature: Because LIC updates these rates periodically based on experience and profits, the exact FAB amount varies and can only be confirmed using the official LIC India discharge voucher or a certified branch calculation at the time of maturity or claim.