Life Insurance Bonus

We may issue two types of bonuses to our policyholders:

• The annual bonus is an amount distributed yearly to all our participating policies1.
• A special bonus (sometimes called a terminal bonus) is an extra bonus which we pay at the time of a claim, or upon maturity, or if you surrender the policy.

1 Participating policy refers to the policy that is managed in the Participating Fund (“the Fund”). The policy shares in the profits or losses of the Fund, through bonuses added to your policy. For more information, please refer to this guide: Understanding Your Participating Policy.

The annual bonus is an amount distributed yearly to all our participating policies ¹.

The annual bonus declared each year is determined by the Appointed Actuary and approved by the Board of Directors. Once the annual bonus has been declared, it is guaranteed. The annual bonus is accumulated annually and will be payable upon maturity or death.

¹ Participating policy refers to the policy that is managed in the Participating Fund (“the Fund”). The policy shares in the profits or losses of the Fund, through bonuses added to your policy. For more information, please refer to this guide: Understanding Your Participating Policy.

A special bonus (sometimes called a terminal bonus) is an extra bonus which we pay at the time of a claim, or upon maturity, or if you surrender the policy.

You may send us an enquiry to obtain a copy of Bonus Encashment voucher. The voucher is valid for 14 days from the date of your voucher.

Documents required:

• Bonus Encashment voucher
• Personal identification document
• Documentary proof of admission to a tertiary education institution or a copy of marriage certificate of the Life Assured (required for bonus encashment with enhanced benefit)

You may request a direct credit to your personal bank account by providing a copy of your recent bank book/statement which reflects the Bank Name, account holder’s name and account number. 

The following personal identification document is needed for verification purposes.

For Singaporeans or Singapore permanent residents 

• Clear copy of NRIC (front and back)

For Foreigners staying, studying or working in Singapore

• Clear copy of passport showing validity dates, passport number, photograph, nationality, date of birth and name; and
• Clear copy of Singapore employment pass, S pass, work permit, student pass or dependent's pass (front and back); and
• Clear copy of a document (issued within the last 6 months e.g. utility bills, phone bill) that shows your name and address. The passport, passes or permits must be valid for at least 6 months.

Please the completed forms with your personal identification document by any of the methods below. We will process your request after we have received the completed documents. 

• Branch: Find an Income branch
• Emailing: csquery@income.com.sg
• Post to: 
  Income Centre
  75 Bras Basah Road
  Singapore 189557

If the policy is assigned under absolute assignment1, only the assignee can give the instruction to encash the bonus and proceeds will be paid to the assignee.

¹ An absolute assignment is the transfer of a life policy to another person. The person who transfers the policy is called the assignor. The person who takes over the ownership of the policy is called the assignee.

We need consent of all trustees plus beneficiaries (at least age 21) named under the policy. Proceeds will be paid to all trustees, or all beneficiaries (at least age 21).

Proceeds will be paid to the trustee (who is not the policyholder), or all beneficiaries (at least age 18). Parental consent is required if any of the beneficiaries is below age 18. The parent who gives consent must not be the policyholder.

There is an option for you to encash the accumulated bonus for the purpose of the Life assured’s tertiary education and legal marriage. We will pay the enhanced discounted value of the accumulated bonus at a rate which is 25% more than the normal discounted value. It must be encashed within six months after marriage or entry into/graduation from a tertiary institution.

Unless there is a real need, we do not encourage policyholders to encash their bonuses (even with the enhanced option) because of these possible consequences.

• The discounted value of the bonuses may be smaller than the face value of the annual bonuses given up.
• Future annual bonuses earned on the policy will be reduced due to the loss of the compounding effect of annual bonuses.
• A reduction in the face value of the annual bonuses means lesser bonuses (both annual and terminal) for a claim or maturity event in the future.

You may approach your advisor if you wish to evaluate this option.