Bonuses in life insurance are extra amounts added to your policy by the insurance company. They are given when the company earns a profit and are usually found in participating life insurance plans like endowment or whole life policies.
There are two main types:
- Reversionary Bonus – added to your policy every year and paid on maturity or death.
- Terminal Bonus – a one-time bonus paid when the policy ends.
Bonuses increase your final payout. For example, if your sum assured is Rs. 5 lakh and bonuses add Rs. 1 lakh, your family receives Rs. 6 lakh.
The amount of bonus depends on the company’s performance and your policy type. Not all plans offer bonuses, especially term insurance.
If you want steady returns along with insurance protection, choose a plan with bonus benefits.
