Life insurance is more than just a financial safety net; it's a powerful tool for long-term wealth creation. For many participating life insurance policies, this growth is significantly enhanced through the declaration of bonuses. These bonuses are additional amounts paid to policyholders, reflecting the insurer's robust financial performance and investment returns.
At PNB MetLife, we are committed to maximizing the value your policy delivers. This commitment is tangible, and we are thrilled to announce a significant milestone for our valued policyholders.
The recent declaration of our record-breaking ₹1,041 Crore Bonus is a clear testament to our:
This isn't just another bonus declaration; it represents "Our Largest Ever!" payout, a testament to PNB MetLife's strong financial performance, prudent investment strategies, and unwavering dedication to sharing success with our customers.
This significant bonus will directly benefit over 5.68 Lakh policies, enhancing their long-term value and reinforcing the trust placed in us by countless individuals and families across India. It underscores how investing in a PNB MetLife participating life insurance plan can actively contribute to your wealth creation journey, offering growth alongside comprehensive protection.
This record bonus reflects our enduring strength and our focus on delivering superior returns, ensuring that your policy is not just a shield against uncertainties, but also a powerful tool for building prosperity. As you explore the various types of bonuses available in life insurance, understand that at PNB MetLife, we are continuously striving to maximize the returns on your trust and investment.
The term “bonus” in life insurance refers to the additional amount which is offered to the insured when the insurance company earns good profits from its other revenue sources.
It is like a gift from the insurer’s side, which is payable to the policyholder based on the policy terms and conditions. However, the bonus accrued can be received by the policyholder on the maturity or surrender of the policy or the unfortunate demise of the insured (depending upon the terms and conditions of your chosen life insurance policy).
To understand the conditions in which a bonus is rewarded, you need to know the types of bonuses in life insurance.
The premiums paid by policyholders of a life insurance company become a part of its asset pool that is utilised for payment of claims in the future. A large portion of these funds is invested in debt instruments secured by the government while allocating little to equities.
The insurer’s claim experience and returns on investment together are responsible for profit, which it distributes as bonus payments at the end of the financial year. Any excess of assets after the company’s assets and liabilities are valued, may also generate an extra amount to be distributed as bonus.
Life insurance companies declare bonuses from the surplus generated by their participating fund, primarily through investment returns and efficient management. These bonuses add to the benefits payable under the policy, either at maturity, on earlier death, or as regular payouts, depending on the type.
A reversionary bonus is declared annually and, once declared, is added to the policy's sum assured or the accrued bonus. This amount then becomes a guaranteed part of the final payout at maturity or on the unfortunate event of death.
In a simple reversionary bonus, the bonus amount is calculated as a percentage of the original sum assured. This fixed amount is added to your policy each year.
A compound reversionary bonus is calculated not just on the original sum assured but also on the sum of all previously declared bonuses. This means you earn "bonus on bonus," leading to accelerated growth over time due to the power of compounding.
Bonuses are typically declared at the end of a financial year. An interim bonus is paid if a policy matures or a death claim arises between two consecutive bonus declaration dates. This ensures that the policyholder or nominee receives a proportional share of the bonus for the period covered since the last declaration.
Unlike reversionary bonuses that typically accrue within the policy, a cash bonus is paid out directly to the policyholder in cash at the end of each policy year. This provides immediate liquidity and can be a valuable source of regular income, depending on the policy terms.
A terminal bonus is a one-time bonus paid only at the time of policy maturity or on the policyholder's death, provided the policy has been maintained for a specified long duration (e.g., 10-15 years). It's a reward for the policyholder's long-term loyalty and persistence. It is not guaranteed and depends on the insurer's performance.
Some life insurance plans, particularly Unit-Linked Insurance Plans (ULIPs) or specific endowment plans, may offer "Loyalty Additions." These are extra units or a bonus amount credited to the policy at specific intervals (e.g., every 5-10 years) or upon maturity, encouraging policy retention and long-term commitment. These can be guaranteed or non-guaranteed depending on the policy terms.
Due to the uncertainties of life, purchasing a life insurance policy for yourself, your kids, your spouse, and your parents has become the need of the hour.
With numerous benefits, such as financial security, tax benefits on Term Insurance , and, most importantly, different types of bonuses, life insurance is the best path to a financially secure future for both the insured and his family members.
Choosing PNB MetLife for buying a life insurance policy means getting a multitude of options to choose from. From family protection solutions to long-term savings plans, PNB MetLife offers a great investment plans opportunity along with providing security against unfortunate incidents.
Don't miss out on the potential to grow your policy value!
Usually, a bonus is declared at the end of a financial year and is credited in the ensuing financial year.
Only those policyholders who have a “participating” or “with-profit” life insurance policy can be entitled to bonuses.
While a declared reversionary bonus typically becomes guaranteed once added to the policy, the declaration of future bonuses is generally not guaranteed and depends on the insurer's financial performance. Terminal and Loyalty bonuses are also typically non-guaranteed.
Bonuses are calculated based on the insurer's surplus from investment returns, efficient management, and claims experience. Simple reversionary bonuses are a percentage of the sum assured, while compound reversionary bonuses are a percentage of the sum assured plus accrued bonuses.
Bonuses are primarily offered on PNB MetLife's participating life insurance plans. For specific details on which plans offer bonuses and their terms, please refer to the respective product brochures or consult a PNB MetLife advisor.
You can typically check your PNB MetLife policy bonus information through your policy statement, by logging into your online policy account, or by visiting our dedicated Bonus Rates page for annual declarations.
A Simple Reversionary Bonus is calculated only on the original sum assured, while a Compound Reversionary Bonus is calculated on the sum assured plus all previously accumulated bonuses, leading to faster growth due to the compounding effect.
Disclaimer:
IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER.
The unit linked insurance products do not offer any liquidity during the First five years of the contract. The policyholder will not be able to surrender/withdraw the monies invested in unit linked insurance products completely or partially till the end of the fifth year.
Life Insurance coverage is as per the policy terms and conditions. Bonuses are declared based on the company's performance and are not guaranteed, except where specified in the policy terms. Please refer to the product brochure for complete details, exclusions, and terms and conditions. The bonus figures mentioned are for eligible participating policies as declared by PNB MetLife.
^Highest bonus declared year on year since inception for its participating policies in FY 24-25. #The number of participating policies as on 31st March 2025 is 568,0144. T&C Apply. PNB MetLife Company India Insurance Limited Registered Office: Unit No. 701,702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 MG Road, Bangalore -560001, Karnataka. IRDA of India Registration number 117. CIN. U66010KA2001PLC028883. The marks "PNB” and “MetLife” are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks. Call us on Toll-free 1-800-425-6969, Website: www.pnbmetlife.com Email: indiaservice@pnbmetlife.co.in or write to us at 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai - 400062. AD-F/2025-26/247
The past performance of the funds is not indicative of the future performance. Assumed rate of returns are not guaranteed and these are not the upper or lower limits. Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. PNB MetLife India Insurance Company Limited is only the name of the Life Insurance Company and PNB MetLife Goal Ensuring Multiplier is only the name of the unit linked insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. The policyholder can know the value of policy wise units as per the FORM D02 through a secured login on the PNB MetLife website (www.pnbmetlife.com).
At PNB MetLife we are delighted to offer a new fund, the “Nifty 500 Momentum 50 Index Fund” (ULIF03115/02/25NIFTYMOMEN117). The objective of the fund is to invest in a basket of stocks drawn from the constituents of NSE’s NIFTY 500 Momentum 50 Index, subject to regulatory limits. The Nifty 500 Momentum 50 Index aims to track the performance of the top 50 companies within the Nifty 500 selected based on their Normalized Momentum Score. Historical data from NSE suggests that the momentum strategy has outperformed vs broader indices in the past. Regulations may restrict us from investing in all the stocks/sectors in line with their weights in the index from time to time, resulting in tracking error. The index funds which track momentum strategies are best suited for individuals with very high risk tolerance and long-term investment goals.
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.
PNB MetLife India Insurance Company Limited Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
IRDAI Registration number 117 | CIN U66010KA2001PLC028883
Terms & conditions apply, Benefits stipulated are subject to premiums paid and policies in-force. For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details.
Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
Call us Toll-free at 1-800-425-6969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra.
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As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at claimshelpdesk@pnbmetlife.com or indiaservice@pnbmetlife.co.in. You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.
PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance Plans, Term Plan, Protection Plans, Long Term Savings Plans , Retirement Plans & Child Education Plan.
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