Participating policies offer policyholders the opportunity to receive a portion of the company's profits through bonuses. These bonuses are typically divided into two types for insurance policies. The first is a reversionary bonus, which is declared at the beginning of the policy and paid out at the time of maturity. The second is a terminal bonus, which is only paid out upon the policy's termination or claim. Both types of bonuses serve as an added incentive for policyholders to invest in participating policies.
