A with-profits policy is one in which the policyholder receives
benefits over and above the initial amount set out in the policy.
They are in effect sharing in the profits the insurance company
makes on its investments.
The premiums for with-profits policies are more than for
non-profit policies.
Profits are allocated in the form of bonuses which are
normally declared each year and depend upon the insurance company's
investment performance. Normally the bonuses are not payable until
the benefits under the policy are payable. However some with-profit
policies contain an option to surrender bonuses before the policy
matures.
