Bonus

Bonus is paid as an addition to the basic benefit payable under a contract

Types of reversionary bonus

Simple Reversionary Bonus
Insurer declares bonus on the sum assured

Compound Bonus
Compute the annual bonus on a compound interest

Terminal  Bonus
As incentives to the insured to continue with the company for long term. It increases as the duration increases.


Assets are valued in one of the following three ways:

At Book Value
This is the value at which the life insurer has purchased or acquired its assets

At Market Value
The worth of the life insurer's assets in the market place

Discounted present Value
Estimating future income stream from various assets & discounting them to present.