The company said the bonus will benefit around 22.2 lakh participating policyholders. It added that this is its highest-ever bonus declaration to date.
Out of the total amount, an estimated ₹3,761 crore is expected to be paid out in FY27 through maturity or survival benefits, while the remaining portion will accrue to policyholders and be payable in subsequent years as per policy terms.
The bonus applies to participating policies, where policyholders share in the profits of the insurance fund. The company attributed the declaration to its investment performance, risk management framework and long-term financial outcomes.
HDFC Life said the annual bonus reflects its financial position and is determined based on policy performance and regulatory guidelines applicable to participating business.
Bonuses are typically paid at policy maturity or exit, depending on policy conditions, while cash bonuses may be paid on policy anniversaries or accumulated as per product features.
Earlier this month, Bajaj Life Insurance also declared a record bonus of ₹1,939 crore for participating policyholders for the financial year 2025–26 (FY26), its highest ever so far. The company said the payout will benefit over 11.89 lakh policyholders holding eligible participating policies.
The bonus is 5.8% higher compared with ₹1,833 crore declared for FY25.
