Kotak Mahindra Life Insurance declares 20% higher bonus for over 7 lakh policyholders
Kotak Mahindra Life Insurance has announced a bonus of ₹1,007 crore for more than 7 lakh eligible policyholders for FY 2023-24. This is the 23rd consecutive year that Kotak Life has declared a bonus on participating products.
The bonus declared is 20% higher than the bonus amount of FY2022-23.
Participating plans provide policyholders with profit-sharing benefits in the form of bonuses.
This announcement follows a recent trend among major life insurance companies in India declaring substantial bonuses.
Just days earlier, on May 15, HDFC Life announced its highest-ever bonus of ₹3,722 crore, benefiting over 22.23 lakh policyholders.
Last month, Bajaj Allianz Life declared its all-time high bonus of ₹1,383 crore for over 11.66 lakh policyholders for FY 2023-24.
Understanding life insurance bonuses
Life insurance bonuses are additional amounts declared by life insurance companies on participating policies.
These bonuses are essentially a share of the profits made by the insurer, distributed among policyholders.
They come in various forms, such as reversionary bonuses, which are added to the policy's sum assured, and terminal bonuses, which are paid out at the end of the policy term or on the death of the policyholder.
Who benefits?
Policyholders with participating plans benefit from these bonuses.
These plans allow them to share in the company’s profits, thereby enhancing the value of their insurance cover over time.
The declared bonuses increase the policy's maturity or death benefit.
This profit-sharing aspect makes participating plans a popular choice for those looking for both protection and a steady accumulation of wealth.
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