Bonus Rates for LIC Child Career Plan

LIC Child Career Plan is no longer sold by LIC. The product was designed to help parents save funds for their children’s higher education. It came with regular payouts in the form of survival benefits that covered key milestones in a child’s life. Bonuses attached to the assured benefit amount enabled parents to not only save but also grow their savings. The final maturity benefit came with the bonus amount accumulated over the years. 

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Knowing the LIC bonus rate will help you calculate the maturity value of the LIC Child Career Plan. This will offer you good visibility on the returns to expect.

What Are the Bonuses Available With LIC Child Career Plan?

This child education plan by LIC participates in the profits of the company. In simpler terms, the LIC Child Career Plan adds a percentage of the profits earned by LIC to the basic sum assured. This means that the final amount that the child will receive when the policy term gets over will be higher than the original amount. This extra percentage is the bonus rate of the policy.

Please note that the bonus rates for LIC child career plan are not fixed or guaranteed as the profits vary every year based on market performance and other factors.

Here are the bonuses that come with LIC’s Child Career Plan.

  1. Simple Reversionary Bonus

    It is fixed at a rate per Rs.1000 sum assured. You can expect this bonus rate to be anywhere between Rs.35 to Rs.55 for every Rs.1000 of the sum assured. This bonus accumulates every year based on the company’s performance.

    Simple Reversionary Bonus Rates for LIC Child Career Plan

    Valuation Year Policy Term Bonus Rates
    If SA is less than Rs. 1 Lakh If SA is more than Rs. 1 Lakh
    2020-2021 11-15 years Rs. 29 Rs. 30
    16-20 years Rs. 33 Rs. 34
    Above 20 years Rs. 35 Rs. 36
    2019-2020 11-15 years Rs. 29 Rs. 30
    16-20 years Rs. 33 Rs. 34
    Above 20 years Rs. 35 Rs. 36
    2018-2019 11-15 years Rs. 34
    16-20 years Rs. 38
    Above 20 years Rs. 40
    2017-2018 11-15 years Rs. 34
    16-20 years Rs. 38
    Above 20 years Rs. 40
  2. Final Additional Bonus or FAB

    Unlike the Simple Reversionary Bonus, this bonus is a one-time addition to the sum assured. It is a reward for the policyholder for continuing with the policy and is, therefore, added to the final maturity benefit amount. Note that the final additional bonus is only added to participating policies such as the LIC Child Career Plan.

How Is the LIC Bonus Value Calculated?

The bonus amount will be calculated as Bonus Rate X (Sum Assured / 1000). Assuming that the bonus rate is Rs.30 for a sum assured of Rs.10,00,000, the bonus value will be equal to 30 X (10,00,000 / 1,000) = Rs.30,000.

How Is The Maturity Value for LIC Child Career Plan Calculated?

Based on the formula above, you can calculate each bonus amount as per the bonus rate declared by the company for LIC Child Career Plan and add it to the sum assured.

Here is how your child will benefit from the plan along with information on the bonus applicable.

  1. Survival Benefits

    • Five years before the policy matures - 30% of the SA (Sum Assured) plus Simple Reversionary Bonus

    • Four years before the policy matures – 15percent of the SA

    • Three years before the policy matures - 15percent of the SA

    • Two years before the policy matures - 15percent of the SA

    • One year before the policy matures - 15percent of the SA

  2. Maturity Benefit

    When the policy term gets over, 15% of the Sum Assured plus FAB (if any) is paid to your child.

    Thus, on the whole, your child gets 105% of the original sum assured plus additional bonuses. All you have to do is figure out the latest bonus rates for LIC Child Career Plan and use them with the formula mentioned above.

What is the Diamond Jubilee Bonus Rate for LIC Child Career Plan?

On 1st September 2016, LIC marked its 60th year in the industry. On this day, the company announced a special bonus for all its participating plans whose premiums were paid in full by 31st March 2016. This was a one-time bonus and is not applicable on plans with pending premiums or those that were bought after 31st March 2016. Here is the Diamond Jubilee Bonus Rates for LIC Child Career Plan -

Start of the Policy Bonus Rate
April 2006 to March 2011 Rs. 10
April 2011 to March 2016 Rs. 5


  • Q: What does the simple reversionary bonus mean?

    Ans: It is a bonus amount declared for every LIC policy that participates in the profits of the company. LIC declares the rate every year after its valuation as an incentive for its policyholders. The SRB bonus rate is calculated at a rate per Rs. 1000 sum assured. The formula for calculating the LIC simple reversionary bonus is Bonus Rate X (Sum Assured / 1000).
  • Q: How much is the Diamond Jubilee Bonus?

    Ans: It was a one-time bonus amount declared by LIC on its founding day 1st September 2016. Here are some of the conditions of the Diamond Jubilee Bonus -
    • It is only applicable in the case of participating policies. 
    • For policies that started between April 2011 to March 2016, the LIC bonus rate is Rs.5 per Rs.1000 sum assured. 
    • For policies that started between April 2006 to March 2011, the LIC bonus rate is Rs.5 per Rs.1000 sum assured.
  • Q: Am I eligible to get a bonus with my LIC policy?

    Ans: Simple reversionary bonuses and final additional bonuses only come with policies that participate in the company’s profits. These are not guaranteed by the company. You have to check with the insurer and the policy brochure to see what kind of benefits you are entitled to.
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