Vested Bonus

Also called: accrued bonus, vested reversionary bonus

The cumulative bonuses already credited to your participating policy — payable on death or maturity.

Once the insurer declares an annual Simple Reversionary Bonus, it becomes 'vested' — guaranteed to be paid out on death or maturity, but not before. Vested Bonus is the running total of all such annual bonuses credited to your policy so far.

For LIC endowment plans, vested bonus is calculated as: (declared rate per ₹1,000 SA) × (Sum Assured / 1,000) × (years vested). The rate is reset every financial year by LIC's actuarial committee — historical rates have ranged from ₹40–₹55 per ₹1,000 SA for most endowment plans in recent years.

Worked example

If LIC declares ₹47 per ₹1,000 SA for Jeevan Labh and you hold a ₹5 L SA policy, each year adds ₹47 × 500 = ₹23,500 to your Vested Bonus. After 21 years, vested bonus is roughly ₹4.93 L (assuming the rate holds).

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Last updated 28 Apr 2026 · site changelog