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HomeEducation Education Types of bonuses in Life Insurance: #4 Interim Bonus Types of bonuses in Life Insurance: #4 Interim Bonus

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Types of bonuses in Life Insurance: #4 Interim Bonus

Types of bonuses in Life Insurance: #4 Interim Bonus

Wednesday, July 12, 2017, 4:03 PM
Bonuses are declared at the end of the financial year. But, what if a policy matures or death occurs before the end of that period? Insurers declare interim bonus to take care of such situations and to avoid putting such policyholders at a disadvantage. The amount of bonus, however, is added to the policy on pro-rata basis for that specific year.
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