Q243
The most common form of bonus is
A.
Cash bonus
B.
Compound bonus
C.
Dividend
D.
Reversionary bonus
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
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.