Premium Bonus

In Indexed Universal Life (IUL) insurance, a Premium Bonus is an extra amount added by the insurer to the policyholder's cash value account. Key elements:

• Incentive for Premium Payments: Often a percentage of the paid premium, it encourages timely and consistent premium contributions.
• Cash Value Growth Enhancement: Aims to boost the policy's overall cash value growth, leading to increased loan amounts or death benefits.

Considerations:

• Terms and Conditions: Insurance companies may impose specific conditions or fees on the bonus, like vesting schedules or surrender charges.

Understanding the mechanics and conditions of the Premium Bonus is essential for policyholders to fully leverage its benefits in their IUL policy.