Practice of Life Insurance Exam

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.
A unit linked insurance plan (ULIP) is an insurance plan which is a combination of insurance protection and investment. An ideal investment vehicle for people who are looking for the triple benefits of: insurance protection, investment and income tax benefits

Licentiate Exam - IC 02 Practice of Life Insurance Exam - Important Points