Offering a little extra is a great way to retain customer interest. Insurers offer this by way of loyalty additions. These additions accrue to policyholders only if they stay in a policy for a defined term. Loyalty additions can be built into any type of insurance-cum-investment policy. Insurance bonus accrues in particular types of plans.
INSURANCE BONUS
If you buy a participating traditional plan, where the insurer declares the investment returns depending upon the performance of the participating life fund, a part of your investment benefit is paid in the form of bonuses.