$16.4m bonus

BSP Life has allocated $16.4million as payout bonuses to life insurance policyholders for the 2014 financial year.

Managing director Malakai Naiyaga said the 2014 bonus allocation was 9.3 per cent or $1.4m higher than 2013.

He said the allocation gave value to their customers’ life insurance policies and provided increased payout for policies maturing this year.

“As a team, we have worked hard to generate improved returns for our customers. Our investments grew by about $20m last year, taking the overall portfolio to more than $478m.

“Bonuses are allocated from returns generated through our investment portfolio and the increase for 2014 reflects the improving financial standing of our business.”

He said BSP Life declared a reversionary bonus rate of 2 per cent, which was the same rate as 2013. The terminal bonus rate, however, increased from 0.25 per cent in 2013 to 0.35 per cent in 2014, and this would be paid to maturing policies this year.

“Bonus rates are dependent on the investment environment and can change in future. With BSP Life, bonus declarations are based on the sum insured and previously accumulated bonuses. For example, if the sum insured is $100,000 and previous bonuses are $15,000, the 2 per cent reversionary bonus is applied to $115,000, to determine the new bonus for the year,” he said.

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