LIC Death Benefit Calculator
Model policy death claim settlements under Plans 914, 915, 936, and 945. Accurately estimate Sum Assured on Death (SAD), reversionary bonuses, terminal FAB, and rider benefits.
Adjusting this slider simulates death at different durations. Vested simple reversionary bonuses accumulate year-by-year, and Final Additional Bonus (FAB) triggers for completed durations of 15 years or more.
Doubles payout on accidental death.
Adds ₹5,00,000 extra death cover.
Total Projected Death Claim
₹7,10,000
The chart above visualizes your total death payout composition: fundamental life cover vs. accumulated reversionary & terminal bonuses.
Interactive Claim Settlement Timeline Simulator
Click on each stage below to step through LIC's standard claims process, detailing nominee procedures, document checklists, and the final payment clearing.
Nominee submits Death Intimation form stating the policy number, date, place, and cause of death to the home LIC branch.
LIC Death Claims & Benefits: Technical Formulas, Eligibility, & Slabs
A death claim is the ultimate test of any life insurance contract. When an unfortunate event occurs, LIC of India provides the designated nominee with a robust financial shield, composed of the **Sum Assured on Death (SAD)**, **vested Simple Reversionary Bonuses (SRB)**, and a **Final Additional Bonus (FAB)** (if eligible), plus any active rider claims.
| LIC Plan | Sum Assured on Death (SAD) Formula | Bonus Structure | Rider Eligibility |
|---|---|---|---|
| Plan 914 (Endowment) | Highest of: 100% Basic SA, or 7x Annualized Premium | Simple Reversionary Bonus + Terminal FAB | ADB & Term Assurance Riders |
| Plan 915 (Jeevan Anand) | Highest of: 125% Basic SA, or 7x Annualized Premium | Simple Reversionary Bonus + Terminal FAB + Post-Maturity Cover | ADB & Term Assurance Riders |
| Plan 936 (Jeevan Labh) | Highest of: 100% Basic SA, or 7x Annualized Premium | High Yield Reversionary Bonus + Premium FAB Slab | ADB & Term Assurance Riders |
| Plan 945 (Jeevan Umang) | Highest of: 100% Basic SA, or 10x Annualized Premium | Accumulates up to age 100 (or till claim year) | ADB & Term Assurance Riders |
Understanding Actuarial Bonuses: SRB vs. Terminal FAB
The death cover is not static; it grows year-by-year as bonuses accrue. Here is how LIC designs these growth slabs:
Simple Reversionary Bonus (SRB)
- Accrues at the end of each policy year, as declared by LIC's annual valuation.
- Rates are per ₹1,000 Sum Assured. For example, a rate of ₹45 per thousand on a ₹5,00,000 policy yields a vested annual bonus of **₹22,500**.
- Once declared, this bonus becomes a guaranteed asset under the policy, to be paid in full to the nominee upon a claim.
Final Additional Bonus (FAB)
- A one-time terminal loyalty reward added to policies during final payout.
- **Minimum Duration Rule:** The policy must complete at least **15 years of active status** before a death event to qualify for FAB.
- **Minimum Cover Rule:** Basic Sum Assured must be **₹2,00,000** or higher to qualify. Higher covers (e.g. ₹5L, ₹10L) trigger exponentially higher FAB rates.
LIC Claims Documentation & Checklist Slabs
To initiate a claim, the beneficiary must submit a designated documentation pack to the servicing LIC branch. Delays are usually avoided by submitting all original elements early:
Standard Claim Forms
- Form No. 3783: The primary Death Claim Intimation and application form.
- Form No. 3784: Medical Attendant's Certificate (required for early claims).
- Form No. 3801: Certificate of identity and burial/cremation.
- Form No. 3816: Employer certificate (if policyholder was employed).
Primary Policy Certificates
- Original Policy Bond: The physical policy document. If lost, standard indemnity bonds apply.
- Municipal Death Certificate: Certified original from local government authority.
- Nominee Bank Details: Cancelled cheque and NEFT mandate form to credit proceeds directly.
- ID & Address Proof: Aadhar and PAN cards of both deceased and nominee.
Section 10(10D) Tax Immunity for Death Claims
While maturity benefits of standard life policies have premium-to-cover ratio thresholds (e.g. annual premium must stay below 10% of SA to avoid taxation), **death claim benefits settled under LIC are 100% tax-free under Section 10(10D) of the Income Tax Act**.
- No Surcharges: All components—including SAD, accrued reversionary bonuses, terminal loyalty sums, and accidental riders—are entirely exempt from tax.
- No TDS Caps: Unlike maturity payouts, no TDS is ever deducted at source for death benefit claims.
- Estate Duty: India currently does not levy estate duty, so the entire payout is transferred to the family without government deductions.
Frequently Asked Questions (FAQs)
How is Sum Assured on Death (SAD) calculated for LIC Jeevan Anand (Plan 915)?
What are the eligibility criteria for the Final Additional Bonus (FAB)?
- The policy must have completed a minimum premium payment duration of 15 years before the claim event.
- The Basic Sum Assured must be ₹2,00,000 or higher. Slabs of ₹2L, ₹5L, ₹10L+, and higher qualify for progressively larger rates per thousand Sum Assured.
Is the death benefit taxable if premiums exceeded the Section 10(10D) limits?
What is the difference between an early and non-early death claim?
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