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reversionary bonus meaning

"reversionary bonus" in a sentence

Meaningmobile phoneMobile

  • noun
      A bonus added to the sum payable on death or at the maturation of an insurance policy

  • [Economics]
    A sum added to the amount payable on death or maturity of a with-profits policy for life assurance. The bonus is added if the life-assurance company has a surplus or has a profit on the investment of its life funds. Once a reversionary bonus has been declared it cannot be withdrawn if the policy runs to maturity or to the death of the insured. However, if the policy is cashed, the bonus is usually reduced by an amount that depends on the length of time the policy has to run.

Examples

  • Vested reversionary bonus
  • Once a reversionary bonus is added it cannot be removed from the policy.
  • The basic sum assured attracts reversionary bonuses which are used to distribute profits to the policy.
  • Regular bonuses ( sometimes referred to as "'reversionary bonuses "') are guaranteed at maturity and a further non-guarantee bonus may be paid at the end known as a "'terminal bonus " '.

Other Languages

What is the meaning of reversionary bonus and how to define reversionary bonus in English? reversionary bonus meaning, what does reversionary bonus mean in a sentence? reversionary bonus meaningreversionary bonus definition, translation, pronunciation, synonyms and example sentences are provided by eng.ichacha.net.