Reversionary Bonus

Dear Mr. Tan

I had abstracted out the policy contract for you to vet through hope you can help us.

Bonus (All life and endowment policy from Income)
If the policy is with profit policy, a reversionary Bonus will be added to the policy each year out of the surplus arising from the actuarial valuation of the life assurance fund. The amount of bonus will be determined by our actuary. The Bonus will not vest until two years from the entry date and is paid at the same time as the sum assured.

Bonus (vivolife- New life policy from Income)
This is a participating policy. Bonus when declared will be added to the policy out of the surplus arising from the actuarial valuation of the life assurance fund. The amount of bonus will be recommended by our appointed actuary and approved by our Board of Directors. Bonus will not vest two year from the policy entry date.

Most of the policyholders policy contract are mention in paragraph
1 . A reversionary Bonus will be added to the policy each year out of the surplus arising from the actuarial valuation of the life assurance fund. That mean they should declare the annual bonus in full sum once declared.

Those who brought vivolife policy under paragraph 2 stated that Bonus when declared will be added to the policy out of the surplus arising from the actuarial valuation of the life assurance fund. Reversionary word is missing. It does not mention the bonus will added to the policy each year so it can be reversionary or terminal bonus once declare will be added to the policy.

Hope this piece of information will help you to prepare our case cheers.

JL