Definitions for "With Profits"
Participation in bonus declaration for with profits policies.
Relates to insurance policies that combine investment with protection. This type of policy is entitled to a share of the profits made by the insurance company. Premiums are invested in the with profit fund, reversionary bonuses are applied usually on an annual basis which reflect the investment growth of the fund assets. On death and/or maturity a further terminal bonus might be applied to the fund value.
A class of policy which participates in the distribution of surplus in the form of bonuses. Such policies are termed ‘with profits'.