reversionary bonus

reversionary bonus

n
(Insurance) insurance a bonus added to the sum payable on death or at the maturity of a with-profits assurance policy
References in periodicals archive ?
In addition, in some of the participating products, Max Life Insurance also offers reversionary bonus. (ANI-NewsVoir)
The CDO has further said that Kotak Premier Life plan offers simple reversionary bonus throughout the premium payment term of the policyholders.
The company has also announced new Terminal Bonus first time along with Reversionary Bonus in history of Gulf Zone for its policy holders.
reversionary bonus rates on its participating products, Powering Life and New fulfilling Life.
For participating contracts, the different profit distribution methods are also discussed, such as the contribution method, the uniform reversionary bonus method, revalorization methods, and the accumulating with profits method.
The first is an annual reversionary bonus which, when added by the insurer, cannot be taken away.
Britannic's decision to declare a reversionary bonus on its with-profits policies is good news for investors, says Policy Portfolio, a specialist in traded endowments (TEPs).
They consist of the annual reversionary bonus (which sticks to the policy in the future years come what may) and a terminal bonus figure (which varies usually in line with the stock market).
In return for the payment of the single premium, the policyholder is entitled to a fixed guaranteed benefit, together with the so-called reversionary bonus which is added periodically (i.e., a variable component reflecting the individual policyholder's smoothed share of the insurance company's profits), and a second variable component, which is based on the final surplus earned by the insurance company.
The first is an annual reversionary bonus, which when added by the insurer cannot be taken away.
The beauty of the with-profits bond, on the other hand, is that once a reversionary bonus has been declared, the consumer can relax in the knowledge that it is a permanent addition to the bond.
Holders benefit from another 12 per cent annual reversionary bonus. That's the percentage of cash added to the policy's value at the end of each financial year.