reversionary bonus: meaning, definition, pronunciation and examples
LowTechnical/Formal
Quick answer
What does “reversionary bonus” mean?
A bonus added to a life insurance policy that is payable upon the policyholder's death or at a specified future date.
Audio
Pronunciation
Definition
Meaning and Definition
A bonus added to a life insurance policy that is payable upon the policyholder's death or at a specified future date.
In broader financial contexts, it can refer to any deferred bonus or benefit that reverts to a beneficiary under certain conditions, such as in trust funds or annuity contracts.
Dialectal Variation
British vs American Usage
Differences
The term is used similarly in both UK and US English, with no significant variations in meaning or spelling.
Connotations
In both regions, it conveys a sense of deferred financial gain within insurance and financial planning.
Frequency
More common in UK insurance terminology; in the US, it may be less frequently used but is still understood in professional contexts.
Grammar
How to Use “reversionary bonus” in a Sentence
the reversionary bonus on [policy]a reversionary bonus payable to [beneficiary]reversionary bonus accumulationVocabulary
Collocations
Examples
Examples of “reversionary bonus” in a Sentence
verb
British English
- The insurer may revert to allocating bonuses annually based on profits.
American English
- The company will revert to distributing bonuses upon the policyholder's death.
adjective
British English
- The reversionary interest in the trust fund was carefully documented.
American English
- She holds a reversionary claim to the investment portfolio.
Usage
Meaning in Context
Business
Common in insurance contracts, financial advisory sessions, and policy documentation.
Academic
Used in actuarial studies, insurance economics research, and finance textbooks.
Everyday
Rarely encountered in casual conversation; specific to financial or insurance discussions.
Technical
Standard term in life insurance for bonuses that are not immediately payable, often involving actuarial calculations.
Vocabulary
Synonyms of “reversionary bonus”
Strong
Neutral
Weak
Vocabulary
Antonyms of “reversionary bonus”
Watch out
Common Mistakes When Using “reversionary bonus”
- Confusing it with 'terminal bonus', which is paid at policy maturity, not necessarily upon death.
- Using it to refer to any type of bonus without the deferred or death-related context.
FAQ
Frequently Asked Questions
To provide additional benefits to beneficiaries or the policyholder at a future date, often upon death, enhancing the policy's value over time.
A reversionary bonus is payable upon death or at a specified future event, while a terminal bonus is paid at the end of the policy term upon maturity.
Generally, no; it is designed to be payable only under specific conditions like death or maturity, unless the policy terms allow for early surrender under certain circumstances.
They are not always guaranteed; they depend on the insurer's profits and policy terms, often declared discretionally based on financial performance.
A bonus added to a life insurance policy that is payable upon the policyholder's death or at a specified future date.
Reversionary bonus is usually technical/formal in register.
Reversionary bonus: in British English it is pronounced /rɪˈvɜːʃənəri ˈbəʊnəs/, and in American English it is pronounced /rɪˈvɜːrʒəneri ˈboʊnəs/. Tap the audio buttons above to hear it.
Learning
Memory Aids
Mnemonic
Think of 'reversion' as something that reverts or returns in the future, and 'bonus' as extra money, so it's extra money that becomes available later, like a future reward.
Conceptual Metaphor
A planted seed that grows into a future harvest; representing deferred reward or delayed gratification.
Practice
Quiz
What best describes a reversionary bonus?