Nepal Life Insurance Bonus Rate Calculator
Estimate your insurance policy maturity value based on current bonus rates
Annual Bonus Amount:
Rs. 0
Total Bonus Over Term:
Rs. 0
Guaranteed Sum Assured:
Rs. 0
Estimated Maturity Value:
Rs. 0
How Bonus Rates Work in Nepal Life Insurance
In Nepal, life insurance companies operate on a profit-sharing basis for "With-Profit" policies. The bonus rate is the portion of the company's surplus (profits) distributed to policyholders. These rates are declared annually after the actuarial valuation and are typically expressed as a specific amount per thousand of the Sum Assured.
The Formula for Calculation
The calculation for your total life insurance bonus in Nepal follows this mathematical logic:
Total Bonus = (Sum Assured / 1,000) × Bonus Rate × Policy Term
For example, if you have a policy of Rs. 1,000,000 (10 Lakhs) for a term of 20 years, and the company declares a bonus rate of Rs. 60 per thousand, your annual bonus would be Rs. 60,000. Over 20 years, your total accumulated bonus would be Rs. 1,200,000.
Key Factors Affecting Bonus Rates in Nepal
- Type of Policy: Endowment policies usually have different rates compared to Money Back or Whole Life plans.
- Policy Term: Often, longer-term policies attract higher bonus rates per thousand in the Nepali insurance market.
- Company Performance: Since bonuses come from surpluses, the financial health and investment returns of the insurance company directly impact the rate.
- Actuarial Valuation: The Beema Samiti (Nepal Insurance Authority) must approve the valuation before rates are finalized.
Example Table for Quick Reference
| Sum Assured | Rate (per 1000) | Term | Total Maturity |
|---|---|---|---|
| Rs. 5,00,000 | Rs. 65 | 15 Years | Rs. 9,87,500 |
| Rs. 10,00,000 | Rs. 70 | 25 Years | Rs. 27,50,000 |