The LIC Bonus Rate Calculator is designed to help policyholders determine the bonus amount they can expect on their life insurance policies. This tool calculates the bonus rate by considering the total bonus amount declared by LIC in a specific period and the total sum assured by all policies during the same timeframe. It's a straightforward yet powerful means to gauge the added value on your life insurance policy, allowing you to plan your finances with better precision.
Formula of LIC Bonus Rate Calculator
The formula to calculate the bonus rate is as follows:
Bonus Rate = (Total Bonus Amount / Total Sum Assured) * 1000
- Bonus Rate is the rate of bonus per thousand sum assure.
- Total Bonus Amount is the aggregate bonus declared by LIC for a specific duration.
- Total Sum Assured represents the collective sum assured across all policies for which the bonus is calculate.
Understanding this formula is pivotal in appreciating how the LIC Bonus Rate Calculator functions and its utility in your financial planning toolkit.
Table of General Terms
To further aid comprehension and application, below is a table encapsulating general terms associated with the LIC Bonus Rate Calculator. This table serves as a quick reference guide, enabling policyholders to grasp the calculator's functionality without delving into complex calculations each time.
| Term | Definition |
|---|---|
| Bonus Rate | Rate of bonus per thousand sum assured. |
| Total Bonus Amount | Aggregate bonus declared by LIC for a specific period. |
| Total Sum Assured | Collective sum assured for all policies in consideration. |
| Sum Assured | The guaranteed amount the insurer provides upon policy maturity or to the beneficiary upon the policyholder's demise. |
This table simplifies the essential terms, making the calculator more accessible and user-friendly.
Example of LIC Bonus Rate Calculator
To illustrate, let's consider a hypothetical scenario where LIC has declared a total bonus amount of ₹50,000,000 for a total sum assured of ₹500,000,000 in a year. Using our formula:
Bonus Rate = (50,000,000 / 500,000,000) * 1000 = 100
This means the bonus rate is ₹100 per thousand sum assure for that particular period.
Most Common FAQs
LIC typically declares bonus rates annually, factoring in its overall performance and profitability for the year.
Yes, the bonus rate can vary from year to year based on LIC's financial outcomes and the decision of its board of directors.
While the sum assure in a life insurance policy is guarante, the bonus is declare at the discretion of LIC based on its annual profits and cannot be guarantee.