Insurance glossary
Non-Guaranteed Bonus
A non-guaranteed bonus is a benefit that the insurer may declare in the future but does not promise contractually. It often forms a large part of long-term savings policy illustrations.
This page summarizes public information for research and comparison. It is not personalized financial advice.
What the term means
Non-guaranteed bonus refers to policy value that is illustrated based on assumptions rather than fixed contract entitlement. Different products can use annual dividends, reversionary bonuses, or terminal bonuses to build that non-guaranteed layer.
Because these amounts depend on future experience, the final outcome can differ from the original sales illustration.
How to use the term in product research
The practical question is not whether a product has non-guaranteed bonus, but how much of the final outcome depends on it. A policy with a low guarantee base is more exposed to future bonus changes.
When reviewing a plan, compare the guarantee ratio, dividend fulfillment data, and the policy years where surrender value starts to become meaningful.
Non-guaranteed bonus FAQ
Can the insurer reduce non-guaranteed bonus later?
Yes. Future bonuses may be adjusted based on experience and the insurer’s bonus declaration policy.
Does a high projected maturity value mean high guaranteed value?
Not necessarily. A product can show high projected value while relying heavily on non-guaranteed assumptions.
How should buyers read non-guaranteed value?
As a scenario to study, not as a fixed promise. It should always be paired with guarantee analysis and historical disclosure review.
Sources and methodology
Definitions and comparison frameworks reference the Hong Kong Insurance Authority and public insurer disclosures. Check the latest official documents before making a decision.