What is a Bonus in Life Insurance?

By | June 22, 2013
Bonus is the cash value added as a percentage of sum assured to a participating life insurance policy.

There are different types of bonuses. 
They are usually declared at the end of the year. They are issued out of the surplus  arising out of investment made by the company after making due allocations to various account heads.
Bonus once declared, cannot be taken back by the company if the policy is in force. .

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