Hi, can I ask. My NTUC insurance life policy has 'Bonus', 'Net cash value'. I am not sure what the terms mean. Can explain in layman without any insurance jargons to me ?

In layman term:

• Net cash value is the amount you will receive when you surrender your life policy.
• Bonus is the amount the insurance company adds to your life policy cash value annually.

Hi Anonymous,

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• 'Net cash value' is the amount of cash that has been accumulated in your insurance policy since it started, minus any policy loan and any premium loan.

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• 'Bonus' has two parts:

  'Reversionary Bonus' is an annual bonus that are added to your insurance policy's cash value from the start of the calendar year after the policy’s second
  anniversary. Once declared, it will form part of the guaranteed benefits of the policy.

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-- 'Performance Bonus' is a one-off bonus which is a percentage of the accumulated Reversionary Bonuses. It may be paid when the policyholder surrenders the policy, or when the policy matures. The amount will vary depending on the policy termination date.

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Hope this helps.

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