Profits are payable as bonuses or dividends. Bonuses are normally paid as reversionary bonuses. They are declared as a proportion of the sum assured
Simple Reversionary Bonus - declared as amount per thousand sum assured.
Compound Bonus - bonus as a percentage of basic benefit and already attached bonuses. It is thus a bonus on a bonus.
Super Compound bonus - the bonus is arrived at as a percentage of basic benefit and applying another percentage for attached bonus.
Terminal Bonus - this bonus attaches to the contract only on its contractual termination (by death or maturity). It increases as the term increases. terminal bonus for a contract that has run for 25 years would be higher than one which has run for 15 years.
MODELEXAM® 
www.realsoftinfoplan.com