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Cash Bonus vs. Revisionary Bonus

Firstly, a Bonus is an annual payment from the Company’s Participating Life Fund given to Participating policies. A participating policy shares in the profits of the Participating Life Fund.
Most saving (endowment) plan gives bonus, but you much check whether it is Cash Bonus or Revisionary Bonus.
The following FAQs are from Great Eastern website:
Can I withdraw the Reversionary Bonus in my policy?
We do not encourage you to withdraw the Reversionary Bonus as you will not get the full bonus. We will pay only the surrender value of the Bonus. If you have short term financial needs, we recommend you to apply for a policy loan instead.
Is the Annual Reversionary Bonus the same as Cash Benefits (Cash Bonus/Survival Benefits) that I receive at regular interval?
No, this Annual Reversionary Bonus is not the same as Cash Benefits.
What is the relationship between the Company’s profits and my policy bonus?
Bonuses are declared only from Life Insurance operations – PAR Fund. Therefore, while the Company's results reflect the overall financial performance of the whole company, the amount of bonus declared for the year depends on the investment performance, actual and projected, of PAR Fund.
In short, a plan that gives CASH BONUS is better than a plan that gives REVISIONARY BONUS
- You have control over it.
- You can decide how to spend it or reinvest with it.
- You can withdraw it.