LIC FAB Calculator
Evaluate the terminal Final Additional Bonus (FAB) rates declared by LIC based on policy duration and sum assured levels.
₹50,000
One-time terminal loyalty addition.
• Final Additional Bonus (FAB) is declared by LIC annually based on corporate surplus valuation.
• It is payable only once at policy maturity or upon death claim, provided the policy has run for at least 15 years.
What is Final Additional Bonus (FAB)?
The Final Additional Bonus (FAB) is a one-time terminal loyalty addition paid by LIC to policyholders when a policy matures or is claimed as a death benefit, provided the plan has been active for a minimum duration.
- Minimum Duration: Typically paid on policies with a term of 15 years or more.
- Sum Assured Scaling: Higher rates apply to policies with a higher Sum Assured (e.g. above ₹2,00,000 or ₹5,00,000).
How is FAB calculated?
FAB Payout = (Sum Assured / 1000) * FAB Rate The FAB rate is declared per ₹1,000 Sum Assured and increases substantially for terms over 25 years.
Frequently Asked Questions (FAQ)
Why is FAB not paid for shorter terms?
FAB represents a loyalty surplus addition. Since shorter terms contribute less to LIC's long-term investment pool, FAB is reserved for policies running 15+ years.
Does my policy acquire FAB if I surrender it early?
No. FAB is only paid at full plan maturity or in the event of a death claim. Surrendered policies lose FAB benefits.
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