Insurance glossary
Reversionary Bonus
Reversionary bonus is a type of non-guaranteed bonus that may be declared periodically and attached to the policy value base under product terms. Buyers often confuse it with terminal bonus, but the timing and value path can be very different.
What the term means
Reversionary bonus usually refers to bonus value that is declared from time to time and added to the policy under the insurer’s participating framework. Compared with terminal bonus, it tends to build earlier and more gradually.
That makes it useful when you want to understand whether a policy’s illustrated value is growing steadily over time or is mostly back-loaded toward the end of the plan.
Why it matters in product research
Two participating policies can show similar maturity value while using very different bonus structures. A product with more value built through reversionary bonus can behave differently from one that depends mainly on late terminal bonus.
When comparing plans, review historical fulfillment, guarantee ratio, and surrender value path alongside the bonus structure itself.
Reversionary bonus FAQ
Is reversionary bonus guaranteed?
Future declaration is usually not guaranteed. Buyers should read product terms carefully to understand how declared amounts are treated.
Is reversionary bonus always better than terminal bonus?
No. It simply creates a different pattern of value buildup and should be judged against your holding horizon and liquidity needs.
Why should buyers care about bonus structure?
Because the mix of reversionary and terminal bonus changes how value accumulates over time, not just the final illustration number.
Related product research topics
These directory pages group products, guides, and comparison paths behind the same term so you can move from the definition directly into product research.
Dividend fulfillment
Built for searchers asking how to evaluate dividend fulfillment for a specific product before moving into bonus and guarantee analysis.
Terminal bonus
Built for searchers asking how to evaluate a specific product’s terminal bonus and how late-stage non-guaranteed value changes the comparison.
Related insurance terms
Participating Policy
Understand what a participating policy means in Hong Kong insurance, how guaranteed and non-guaranteed benefits work together, and what to compare before buying.
Guaranteed Cash Value
Learn what guaranteed cash value means in Hong Kong insurance, how it differs from illustrated value, and why it matters when comparing savings and participating policies.
Non-Guaranteed Bonus
Learn what non-guaranteed bonus means in Hong Kong insurance, why illustrated benefits can change, and how to compare bonus-heavy products more carefully.