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What is meant by a 'with profit plan'?

A policy issued under a with profit scheme is eligible to participate for bonus addition arising out of surplus revealed on conducting an actuarial valuation. Premium under a with profit plan is always greater than the rate for a with out profit plan. that is while computing the structure of a premium table a bonus loading is made to the rate determined by the other three factors viz., Mortality, Interest and expenses.

LIFE INSURANCE - FAQ :

What is a term assurance?
What is whole life plan?
What is an endowment assurance plan?
What is money back plan?
What is an assignment?
What is a nomination?
Can I take a loan on my policy ?
How can I revive a policy?
What is the procedure in case of a lost policy?
What are the Tax benefits available?
What is surrender value?
How much life insurance should an individual own?
When does a policy acquire paid up value?
What is meant by "mortgage redemption policy"?
What is the benefit of opting riders/add ons?
What is permanent total disablement?
What is meant by a 'with profit plan'?
At what intervals are actuarial valuations conducted?
What is the system of bonus calculation?
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