Multiple choice

The most common form of bonus is

  1. cash bonus

  2. compound bonus

  3. dividend

  4. reversionary bonus

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Reversionary bonus is the bonus declared every year as a percentage of (Guaranteed Maturity Benefit/Sum Assured + Earlier Reversionary Bonuses). It is payable on death of the life assured or maturity of the policy.