There are two bonuses that are added.
(i) The Reversionary Bonus This is an amount declared each year
that is added to all existing savings and investment policies. The
declared bonus rate, for example 2%, is calculated on the sum insured
plus previously accumulated bonuses. This bonus is calculated on a
compounding basis ensuring returns are maximised for customers.
For example, if the sum insured is $100,000 and previous
bonuses are $15,000, the 2% Reversionary Bonus is applied to $115,000,
to determine the new bonus for the year.
|Total sum insured and accumulated bonuses
|Multiplied by the bonus rate
|New annual bonus
(ii) The Terminal Bonus This is an additional bonus that is
added to the policy in the actual year the policy matures or is paid
out. It is based on the number of years a policy has been maintained
with BSP Life until the date of the pay-out. The value of the Terminal
Bonus allocation for 2015 is approximately $2M which is in addition to
the $17.2M allocated under the Reversionary Bonus.
The Terminal bonus will be added to all policies maturing or to
be paid out in 2016. Mr Naiyaga stated, "The ability to continue to pay
bonuses is a reflection of the strong financial standing of BSP Life
specifically, our investment portfolio. We will continue to seek ways to
grow our investment portfolio so that we can deliver sustainable
returns to our customers."
Benefit Payouts In terms of other customer benefits, BSP Life
had earlier announced that customers received $49.1m in benefit
pay-outs for 2015 averaging $944,000 a week. These pay-outs enabled
thousands of customers to fulfil their life goals including retirement,
education, starting a business, paying off debts or taking a
well-deserved holiday. BSP Life paid $42.8m for life insurance policies
and $6.3m for health insurance.
Benefits Paid to BSP Life Customers in 2015
|Life & Health Insurance Pay outs
|Maturities & policy withdrawals
- Approximately 1000 policies matured.
|Death & Disability
- $7.3m was for 373 death claims.
- 200 or 54% were aged below 55 yrs.
$3m used for 70 insureds who were evacuated overseas for life threatening conditions.
|Total Pay outs
Mr Naiyaga noted, "There are times when customers face
financial hardships and question whether it is worthwhile retaining
their policies. Customers who are able to prioritise their spending and
diligently continued their insurance payments are reaping just rewards."
He encouraged those who do not have life or medical insurance policies
to consider investing in one to ensure financial security for themselves
and their loved ones.