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Insurers keeping annual bonus rates unchanged
Life funds post poor 2018 returns but smoothing mechanism keeps bonus rates intact
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Published Sun, Jul 7, 2019 · 09:50 PM
POLICYHOLDERS of traditional life insurance plans can heave a sigh of relief.
Despite a relatively poor showing among life funds in 2018, insurers are maintaining their annual bonus rates, reflecting the benefits of the "smoothing" mechanism that applies to participating policies.
Two insurers - Prudential and Aviva - are adjusting terminal bonuses (TBs) on some products. The terminal bonus is a one-time bonus paid when policies mature. Aviva is raising TB rates on some products but cutting on others. Prudential is cutting TB rates for some products.
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