Several life insurance companies have recently declared their highest-ever bonus for policyholders of participating plans.

Participating or par plans are life insurance policies that provide the policyholder with profit-sharing benefits in the form of bonuses. Let’s have a look.

Tata AIA Life Insurance Bonus

Tata AIA Life Insurance has declared a bonus of Rs 1,183 crore for Participating (PAR) policyholders for the Financial Year 2022-23. In a statement, the company said it has been paying bonuses to its eligible policyholders over the years, and the FY23 bonus was 37% higher than the Rs 861 crore bonus announced in FY22. A total of 7,49,229 Participating Policies are eligible for this bonus.

“At Tata AIA, we are driven by our core value of Consumer Obsession. Our endeavor is to partner our consumers in their financial well-being and this bonus announcement is a demonstration of our commitment to our policyholders in this regard. We will continue to work hard to ensure that Tata AIA’s consumers are financially secure and rewarded for their loyalty,” Samit Upadhyay, President and Chief Financial Officer, Tata AIA Life Insurance, said.

Also Read: Max Life insurance policyholders to get Rs 1,604 crore as participating bonus

PAR products of Tata AIA offer life insurance cover, income, as well as lump-sum benefits in the form of bonuses. According to the statement, investing in these solutions offers consumers the opportunity to grow their investments without taking on the risks associated with market-linked products. Cash bonuses provide liquidity and helps consumers generate wealth through a terminal bonus component in addition to a life cover throughout the term of the policy.

The total Assets Under Management (AUM) of Tata AIA as of 31st March 2023 was Rs 71,006 Cr crore. For the same period, 99.10% of the rated AUM of Tata AIA Life were rated either 4-star or 5-star on a 5-year basis, according to the international rating agency Morningstar. Out of the 11 funds available for new business, 7 were rated 5-star, and 4 were rated 4-star on a 5-year basis, the insurance company said.

PNB Metlife Bonus

Earlier this week, PNB MetLife also declared its highest-ever bonus of Rs 768.6 crore for eligible policyholders. The insurer said this bonus is 29% higher than that of the previous year and is set to benefit 5.52 lakh policyholders.

“The INR 768.6 crore bonus is the highest we have given out till date, and this is a testament to PNB MetLife’s robust financial performance, sound investment strategies, and efficient risk management practices. It highlights the company’s strong position and our ability to generate sustainable returns for our policyholders. This bonus will benefit approximately 5.5 lakh PNB MetLife policyholders and enable us to assist our clients in building a more secure and confident future,” said Ashish Kumar Srivastava, MD & CEO, PNB MetLife.

HDFC Life Bonus

Last month, HDFC Life declared its highest-ever bonus of Rs 3,660 crore on participating plans. The bonus was announced in the Company’s Board meeting held in April 2023. As many as 23.14 lakh policyholders are eligible for this bonus, the company said in a statement.

As per the statement, out of the total amount of Rs 3,660 crore, Rs 2,696 crore will be payable to policies in this financial year, as a bonus on maturing policies or as cash bonuses. The remaining bonus amount would be payable in the future upon policy cessation by way of maturity, death claim or surrender pay-outs.

Disclaimer: The above content is based on press releases issued by life insurance companies. Please consult your financial advisor before buying a life insurance policy.