Vested Bonuses
All the LICI Plans with the suffix ‘With Profits’ are eligible for allocation of annual reversionary bonuses (Endowment Plans – 14F, 48F; Whole Life Plans – 2F, 5F & 28F; Money Back Plans – 74F, 75F & 93F; and the Aspire Children’s Plans – 601, 602, & 603)When the bonuses are allocated they become vested with the policy and are payable on maturity or on death of the assured during the term of the policy. Where a policy is surrendered for cash value, the vested bonuses are added to the ‘paid-up value’ under the policy only after the policy has completed five years from the date of commencement. The rate of bonus allocated depends upon:

1. The Plan and Term of the policy.
2. LICI’s Investment experience and the surpluses generated during the year.

Terminal Bonuses
Terminal Bonuses are payable only in respect of death and maturity claims and not for surrenders and premature cancellations of policies. The terminal bonus rates and conditions for allotment vary every year depending upon LICI’s investment experience and its bonus distribution policies.

While LICI will try to maximize the bonuses to its policyholders through prudent management of its funds, it does not however guarantee regarding the quantity of bonuses or bonus rates under any policy. Bonuses may increase or decrease year after year depending upon LICI’s investment experience.

Guaranteed Additions
In respect of some ‘without profit’ plans (example, Smart Life and Smart Life 2 – Table Nos. 134 & 135), LICI guarantees an annual addition to the policy at a predetermined rate which is made known to the policyholder even before he has signed the proposal papers. In respect of Smart Life 2 plan, the guaranteed addition is @$30 per thousand sum assured for the ten year term of the policy.