LIC Policy Bonus, Maturity & Loan Guide 2026 — All Types Explained
LIC policy bonus rates 2026, maturity amount calculation, loan against LIC policy, surrender value — Jeevan Anand, Jeevan Labh, New Endowment, Money Back plans explained.
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LIC Policy Bonus, Maturity & Loan Guide 2026
Understanding your LIC policy's maturity value, bonus accrual, and loan eligibility can help you make better financial decisions — whether to continue, surrender, or take a loan against your policy.
This guide explains LIC bonus types, maturity calculation, and loan rules for popular LIC plans.
LIC Bonus Types — How They Work
| Bonus Type | How Credited | Paid |
|---|---|---|
| Simple Reversionary Bonus (SRB) | Declared annually on Sum Assured | At maturity/death claim |
| Final Additional Bonus (FAB) | One-time at maturity | At maturity only |
| Guaranteed Additions | Fixed per ₹1,000 Sum Assured per year | At maturity |
| Loyalty Addition | Extra bonus for long-term policyholders (15+ years) | At maturity/death |
LIC Bonus Rates 2026 (Declared Annually)
Bonus rates vary by plan and policy term. Approximate 2025–26 rates:
| Plan | Annual Bonus per ₹1,000 Sum Assured |
|---|---|
| Jeevan Anand (Table 815) | ₹48–₹52 |
| Jeevan Labh (Table 836) | ₹54–₹58 |
| New Endowment Plan (Table 814) | ₹48–₹52 |
| New Bima Gold (Money Back) | ₹38–₹42 |
| Jeevan Umang (Whole Life) | ₹44–₹50 |
| New Jeevan Anand (Table 915) | ₹48–₹52 |
Official rates announced by LIC in Board meetings. Check licindia.in for current announced rates.
LIC Maturity Amount Calculation
Maturity Amount = Sum Assured + Total Accumulated Bonus + Final Additional Bonus
Example: Jeevan Anand (Table 815)
- Sum Assured: ₹5,00,000
- Policy Term: 25 years
- Annual Bonus Rate: ₹50 per ₹1,000 SA
- Annual Bonus: ₹50 × 500 = ₹25,000
- Total Bonus (25 years): ₹25,000 × 25 = ₹6,25,000
- Final Additional Bonus (FAB): ~₹1,50,000–₹2,00,000 (estimate)
- Total Maturity: ₹5,00,000 + ₹6,25,000 + ₹1,75,000 = ≈ ₹13,00,000
FAB depends on actual LIC declaration. Actual may vary.
Annual Premium for above policy: Approximately ₹20,000–₹25,000/year for a 30-year-old male.
Check Your LIC Policy Maturity Amount Online
- Go to licindia.in
- "Customer Services" → "Policy Status"
- Enter: Policy number + date of birth
- View: Sum Assured, Bonus Accrued, Maturity Date
OR: LIC Customer App
- Download LIC Customer app
- Login → My Policies → Select policy → "Policy Status"
- Shows: Accumulated bonus, premium due, maturity details
Loan Against LIC Policy
Eligibility: After paying premiums for minimum 3 years, you can take a loan against LIC policy.
| Feature | Details |
|---|---|
| Loan amount | Up to 90% of Surrender Value |
| Interest rate | 10%–10.5% per annum (currently) |
| Repayment | Flexible — pay interest regularly; principal at maturity/death claim |
| No credit check | Loan approved against policy value — no CIBIL check |
How to Apply for LIC Policy Loan
- Visit nearest LIC branch
- Fill Loan Application Form
- Submit: Policy bond (original), KYC documents
- Loan sanctioned: 1–2 working days
- Amount via NEFT to your bank account
OR: Online via LIC Policy Loan Service (select plans):
- licindia.in → Online Services → Policy Loan
- Enter policy number → Verify OTP → Sanction letter generated
- Amount credited in 2–3 days
LIC Policy Surrender Value
If you stop paying premiums and surrender the policy:
Conditions:
- Must have paid at least 3 years of premiums
- Surrender Value = [Paid-up Surrender Value] + [Special Surrender Value]
Approximate Surrender Values:
| Years Paid | Approx % of Total Premiums Paid (as SV) |
|---|---|
| 3 years | 30% |
| 5 years | 50% |
| 10 years | 65–70% |
| 15 years | 75–80% |
| Near maturity | 90%+ |
Decision: Don't surrender LIC policy unless absolutely necessary. The bonus accumulation in later years is highest — most returns come in the final years.
Paid-up Policy: Stop paying premiums but don't surrender. Policy continues at reduced Sum Assured proportional to premiums paid. Collects reduced bonus till maturity.
LIC Policy Maturity — Collection Process
- LIC sends intimation letter 6 months before maturity
- Submit: Discharge Voucher + Original Policy Bond + Bank account details (cancelled cheque) + KYC (PAN + Aadhaar)
- Amount credited to bank in 5–7 working days after submission
Online claim registration:
- licindia.in → Claims → Maturity Claims → Online registration → Upload documents
Taxation: LIC maturity amount is tax-free under Section 10(10D) if:
- Premium ≤ 10% of Sum Assured (for policies from April 1, 2012 onwards)
- If premium > 10%: Maturity is taxable (added to income)
Most traditional LIC policies fall within the tax-free limit.
LIC Policy Revival (Lapsed Policy)
If you missed premium payments and policy lapsed:
- Can be revived within 5 years from date of first unpaid premium
- Pay all outstanding premiums + interest + penalty
- May require fresh medical examination for large policies
Online Revival: licindia.in → Online Services → Online Premium Payment → Revival Mode
Frequently Asked Questions
How much will I get on LIC Jeevan Anand ₹5 lakh maturity? Approximately ₹12–14 lakh for a 25-year policy depending on annual bonuses declared. Check your specific policy details on LIC customer portal for accurate accumulated bonus.
Is LIC better than mutual funds for long-term? LIC (traditional plans) gives ~5–6% effective returns (factoring in premiums paid vs maturity amount). Equity mutual funds historically give 12–15% CAGR. LIC is safer but lower returns. For pure investment, ELSS/index funds beat LIC. LIC is for those who want life cover + guaranteed return.
Can I take LIC policy loan online? Select plans support online loan application via licindia.in. For most, branch visit is required for the initial loan. Subsequent top-ups may be online.
What happens to LIC policy if I don't pay premium for 3 years? Policy lapses but has acquired surrender value (since 3+ years paid). Options: Revive within 5 years, take paid-up policy, or surrender for the surrender value.
LIC agent says my policy will give ₹25 lakh at maturity — is that accurate? Ask for: Policy schedule document (issued by LIC, not agent) + official bonus rates from licindia.in. Agent projections often use optimistic bonus rates. Calculate using current declared rates for more accurate estimate.
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