Hi. May i check is the 3%-4.25 on benefit illustration inclusive of reversionary and terminal bonuses? Beside reversionary and terminal bonus is there any other returns from par policy?

Hi anon,

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The illustrations will account for both reversionary and terminal bonuses.

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The values do not represent the upper or lower bound of the payouts.

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There can be scenarios whereby an insurer has a far better than expected returns and you get a maturity amount even higher than the maximum projections, although that is a rare event.

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You might be more familiar with the news about insurers cutting bonuses, so typically you would want to project a figure between 3% and 4.25% to be conservative. If you do get the 4.25% figure it's a plus.

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Terminal bonuses are only known at point of claim, surrender or maturity. Reversionary bonuses will be declared (or not) every year and added to the policy yearly.

The non-guaranteed portion of the BI does include projected reversionary and terminal bonuses. And once reversionary bonus is declared every year, it becomes guaranteed.

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I'm not aware of any other bonuses from par policy.