Unlocking Life Insurance Bonuses: A Simple Guide for 2025

Life insurance is not only about safeguarding. It has benefits as well. In 2025, knowing various types of bonuses could be beneficial in making good use of your policy. Here is the simple guide to the main types of bonuses you have in store for yourself:?

Reversionary Bonus

This bonus gets added to the policy amount each year and becomes a part of the amount payable. For instance, Bajaj Allianz Life's Elite Assure awards reversionary bonuses at varying rates ranging from 3.4% to 6.0%, depending on the policy term. ?

Terminal Bonus

A one-off bonus payable only at the end of the policy term or upon death. It is the extra price for a long stay in the investment. For example, for these Postal Life Insurance policies having a term of 20 years and above, the Indian government has ruled that there be a terminal bonus of ?20 for every ?10,000 sum assured. 

Cash Bonus

This bonus is paid out in kind or cash, annually, most time. It is also a flexible option because you can get immediate returns. Under this plan, the highest cash bonuses range between 7.5%-7.5%, depending on the premium payment term. 

Interim Bonus

If your policy gets terminated before the next bonus is declared, you may be eligible to receive an interim bonus. It will ensure you do not miss accrued benefits. For example, Aditya Birla Sun Life Insurance provides interim bonuses for policies that mature or are claimed before the next bonus announcement. 

Recent Highlights:

Shriram Life Insurance declared FY24's bonus of Rs 201 crores, benefiting 3.86 lakh policyholders.

Future Generali India Life also announced a bonus of Rs 59.80 crores for FY24, benefiting over 1.01 lac of policyholders.

Bottom Line: Bonuses can significantly enhance your returns from life insurance. Understanding the types of bonuses can help in choosing a life insurance policy that will help you achieve your financial goals. One must always contact their insurance advisor for proper decision-making.