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Life Insurance Policy Bonus





1 A bonus is declared out of the valuation surplus of a life insurance fund, that is, the excess amount left in the fund after the insurer's requirements have been met.

2 Only `participating' or `with profit' policy holders are eligible for the bonus declared.The bonus varies across plans.

3 A simple revisionary bonus is declared and added to the sum assured of the insured.

4 A compounded revisionary bonus is calculated as a percentage of the sum assured including any past bonuses declared.

5 Terminal bonus is paid once in the life of the policy, when the policy has been in force for a long time.

6 Interim bonus is paid to compensate for policies that were in force at the time the valuation was made but became claims before the bonus was declared and paid.









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1. BNP Paribas Long Term Equity Fund

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6. ICICI Prudential Long Term Equity Fund

7. IDFC Tax Advantage (ELSS) Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. Birla Sun Life Tax Plan

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