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1. Bonus in Reduction of Premium: Instead of paying bonus in cash, the corporation may deduct the bonus from the premiums due from the insured. This is known as bonus in reduction of premium. It is shown both on the debit side (as an expense) and credit side (by adding to the premium) of revenue account.
2. Surrender value is the amount that a policyholder can get immediately in cash back from the life assurance company if he stops paying premiums. It is the present cash value of the policy. The other option to the policyholder is to get the policy.
Wilfykil answered the question on February 11, 2019 at 09:28
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