What Is LIC’s Persistency Ratio?

The persistency ratio is an important indicator of how the policy has been performing based on the renewal premiums paid by policyholders. Growing competition and the recent pandemic have caused LIC’s persistency ratio to go down.

Read more
LIC Plans-
Buy LIC policy online hassle free
Tax saving under Sec 80C & 10(10D)^
Guaranteed maturity with life cover for securing family's future
Sovereign guarantee as per Sec 37 of LIC Act
LIC life insurance
We are rated~
6.7 Crore
Registered Consumers
Insurance Partners
3.4 Crore
Policies Sold
Now Available on Policybazaar
Grow wealth through
100% Guaranteed Returns with LIC
We don’t spam
View Plans
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on ''View Plans'' you, agreed to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp
We are rated~
6.7 Crore
Registered Consumers
Insurance Partners
3.4 Crore
Policies Sold

LIC has dominated the life insurance space in India for decades, creating one of the largest distribution networks over the last 65 years. It has continued to remain relevant amidst a lot of competition from private players. LIC reported a claim settlement ratio of 98.63% and a solvency ratio of 1.76, both equally important in assessing an insurer. Another important aspect to look at is the persistency ratio. Let’s look at this aspect in detail. 

What is persistency ratio in life insurance? 

In the simplest terms, the persistency ratio indicates the percentage of policyholders that have renewed their policies. A high ratio means that policyholders are satisfied and are choosing to continue their policies. A low ratio implies that not many people have paid renewal premiums to continue their policies at the end of the policy term. 

Persistency Ratio of LIC

The table below highlights LIC’s persistency ratios in the 13th month of a policy across different financial years. The 13th month is considered the baseline for measuring as it marks the end of the 1st policy year. Note that these ratios were calculated based on the annual renewal premium, and not the number of policies renewed. 

Financial Year Persistency Ratio
2019 77%
2020 72%
2021 79%

While the yearly trend in LIC’s persistency ratio may be increasing, it is reported to be lower than some of the leading life insurers in India. Lockdowns following the pandemic, newer products, and increasing competition in the insurance space may have contributed to this. Moreover, with several people losing their income during the pandemic, individuals may have chosen to discontinue payments for LIC insurance policies to pay for medical expenses. 

How is the persistency ratio calculated?

It is either calculated per the annualized premium or the number of policies renewed. Further, the ratio is calculated for a single financial year or a series of financial years. The persistency ratio of an LIC policy for the first year is calculated in the 13th month of the policy term. Similarly,  for 2 years, it will be calculated in the 25th month, for 5 years - it will be calculated in the 61st month, and so on. 

Why is the persistency ratio important?

Renewing a policy is very important if you want continued coverage against unforeseen circumstances. If you do not continue to pay premiums throughout the entire duration of the premium paying term, the policy lapses. Now people may have varying reasons to discontinue premium payments such as loss of income, low product performance in the case of ULIPs, better products, etc. Knowing the persistency ratio of an insurer will help you understand if other people are satisfied with its products and features. This information equips you to make an informed decision and choose the best life insurance policy for yourself and your family.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
++Returns are 10 years returns of Nifty 100 Index benchmark

LIC of India
LIC Plans
LIC Jeevan Utsav
LIC Jeevan Kiran
LIC Dhan Vriddhi
LIC Monthly Investment Plans
LIC Jeevan Azad
LIC 1 Crore Endowment Plans
LIC Jeevan Labh 1 Crore
LIC Crorepati Plan
LIC Dhan Varsha - Plan No. 866
LIC Pension Plus Plan
LIC New Jeevan Shanti
LIC Bima Ratna
LIC Group Plans
LIC Fixed Deposit Monthly Income Plan
LIC Savings Plans
LIC’s New Jeevan Anand
LIC New Jeevan Anand Plan 915
LIC's Saral Jeevan Bima
LIC's Dhan Rekha
LIC Jeevan Labh 836
LIC Jeevan Jyoti Bima Yojana
LIC Child Plans Single Premium
LIC Child Plan Fixed Deposit
LIC Jeevan Akshay VII
LIC Yearly Plan
LIC Bima Jyoti (Plan 860)
LIC’s New Bima Bachat Plan 916
LIC Bachat Plus Plan 861
LIC Policy for Girl Child in India
LIC Samriddhi Plus
LIC New Janaraksha Plan
LIC Nivesh Plus
LIC Policy for Women 2024
LIC Plans for 15 years
LIC Jeevan Shree
LIC Jeevan Chhaya
LIC Jeevan Vriddhi
LIC Jeevan Saathi
LIC Jeevan Rekha
LIC Jeevan Pramukh
LIC Jeevan Dhara
LIC Money Plus
LIC Micro Bachat Policy
LIC Endowment Plus Plan
LIC Endowment Assurance Policy
LIC Bhagya Lakshmi Plan
LIC Bima Diamond
LIC Anmol Jeevan
LIC Bima Shree (Plan No. 948)
LIC Jeevan Saathi Plus
LIC Jeevan Shiromani Plan
LIC Annuity Plans
LIC Jeevan Akshay VII Plan
LIC SIIP Plan (Plan no. 852) 2024
LIC Jeevan Umang Plan
LIC Jeevan Shanti Plan
LIC Online Premium Payment
LIC Jeevan Labh Policy-936
LIC Money Plus Plan
LIC Komal Jeevan Plan
LIC Jeevan Tarang Plan
LIC Bima Bachat Plan
LIC’s New Money Back Plan-25 years
LIC Money Back Plan 20 years
LIC Limited Premium Endowment Plan
LIC Jeevan Rakshak Plan
LIC New Jeevan Anand (Previously LIC Plan 149)
LIC New Endowment Plan
LIC Varishtha Pension Bima Yojana
LIC Investment Plans
LIC Pension Plans
Show More Plans
LIC Calculator
  • One time
  • Monthly
/ Year
Sensex has given 10% return from 2010 - 2020
You invest
You get
View plans
Download the Policybazaar app
to manage all your insurance needs.