ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In case of a non-participating policy, there is no bonus or dividend paid to the policyholder. However, there are guaranteed death benefits and maturity benefits. The most important benefit of participating policies is that it not only provides protection, but also provides returns in the form of a bonus.

Detailed explanation-2: -Simple Reversionary Bonus This type of Bonus declaration usually happens once a year. This bonus is instantaneously added to the value of your policy. They are only paid when the policy matures or when someone dies. For example, you have a life insurance policy that offers a sum assured of Rs.

Detailed explanation-3: -Terminal Bonus: A one-time bonus also referred to as persistency bonus is paid by the best life insurance policy in India to the policyholder for running the policy for a determined period as per the insurer’s discretion.

Detailed explanation-4: -In the insurance sector, a bonus is an additional sum which is accrued to the life insurance policy on an. This amount is paid out by the insurer to the policyholder at the time of either maturity or sudden demise.

Detailed explanation-5: -: not taking part in something : not participating.