Bonuses in insurance come in many forms, it is regarded as return on investment , in short means profits derived from investment, saving and etc.
Namely there are a few types of them, the reversionary bonus, simple bonus, cash bonus, terminal bonus, maturity bonus and etc.
However many are not aware of this type of bonus, and tend to term them as interest and so forth.
The reversionary bonus or cash bonus, as the case may be, declared by the company in the past is GUARANTEED. This reversionary bonus or cash bonus that have been declared and allocated by the company to your policy will not be affected by any bonus revision in the future, if any.
Terminal bonus on teath is an additional bonus that is valid for one year only once declared by the company. Future terminal bonus could change significantly from year to year and may be different from those originally illustrated to you.
All future bonuses are NOT GUARANTEED and very much depending on the future operating experience and investment results of the company's participating fund as well as the company's view on future environment. As the future is unknown, the future bonuses are not guaranteed and the amount to be declared in the future may be more or less than previously illustrated to you.
(Note: This type of bonuses is applied majority of the company but does not represent the companies in the whole industry)
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