An extra dividend to the shareholders of a joint stock company, out of accumulated profits.
Added to with profit policies. The amount is determined by life company's actuary and represents a distribution to with profit policyholders of investment return achieved by fund. Payment of bonus is not guaranteed. Reversionary bonuses, normally declared annually, cannot be removed once added. Terminal bonuses added on death or maturity.
Amount of money added to the sum insured of a "with-profits" policy. It may be added during the term of the policy (reversionary) or when the policy matures (terminal), or both.
The insurance company periodically values its assets and liabilities. The premium payments that it receives from you are used for three purposes: to settle claims, to make investments, and to pay expenses. If the insurance company makes profits, it declares a bonus for a certain period for its policyholders. It can disburse this bonus to you in three ways: the bonus is added to the value of the policy;the bonus is distributed to you physically; or your future premium payments are reduced. In India, generally the first method is adopted for with profit policies, and is paid to you upon maturity of the policy.
In life assurance terms, taken to refer to the investment return on a with profits policy which, once declared, is secure. Bonuses are not guaranteed until the declaration is made final. Most usually take the form of annual or reversionary bonuses, or terminal bonuses. The amount depends on the value of the assets of the company in question, and the ‘discretion' of the appointed actuary.
If the policy holder has a with profits life insurance policy the bonus is the payments made under the policy as a bonus, which is dependant on the profits that are made by the life insurance company.
The amount paid as return in a â€˜with-profitâ€™ policy. The bonus, expressed as a percentage of the sum assured, is generally declared every year. The amount is linked to the profits earned by the insurer. Depending on the time of withdrawal, there are two kinds of bonuses â€“ reversionary and cash. A reversionary bonus can be encashed only on maturity of the policy; a cash bonus can be withdrawn when declared
The yearly share of a policy holder's profit declared by L.I.C. based on its profit which gets added to the policy amount and is payable upon its maturity.
Bonus is the amount added to the basic sum assured under a with-profit life insurance policy.
Amount of money to be added to the guaranteed part of the sum insured of a With Profit Insurance policy. Bonus's can be added at different times throughout the lifetime of a contract either during the policy term or at the end of it
Returns from insurance is normally given through Bonuses. The bonuses are based on the surplus of the company after meeting its liabilities. You would get higher bonuses depending on the returns on the investments of the insurance company, the interest rates and the costs of the firm. If the insurance has a larger base of policies and premiums, then the costs as a percentage of the revenues are likely to be lower.
An additional benefit in excess of the basic benefit, paid from a WITH PROFIT POLICY.
An amount added to a basic figure. For instance bonus is added each year to a with-profit life insurance policy, thus increasing the amount ultimately payable when a claim arises. See also: Dividend
A part of the surplus of an insurance company distributed to policyholders / A free distribution of shares or money.
Relates to a with-profits policy. The amount of money added to the benefit payable under the policy. The amount is dependent upon the profits made by the insurance company. Added bonuses cannot be taken away.
An amount that is added to a "with profits" life assurance policy. It can be added within the term of the policy (reversionary) or when the policy matures, is surrendered or paid out following death (terminal).
An amount that is added to a "with-profits" life assurance policy. It can be added within the term of the policy (regular) or at the end of a policy (final).