A bonus in participating life insurance is an addition allocated according to the insurer's product rules and financial results. It may be attached to benefits or payable at a defined event, rather than being immediate cash. Declared, vested, and projected bonuses can have different levels of certainty.
A Nepalese customer should check how bonus is calculated and when it becomes payable on death, maturity, or surrender. A past declaration does not guarantee the same future rate. Keep this concept separate from a no-claim bonus, which rewards qualifying claim-free periods under other insurance products.