Meaning of the term "Bonus" in Life Insurance

Bonus:-

(applicable only to Life Insurance): A life insurance policy may be “with profit” or “without profits”. The holder of a “without profits policy is entitled to receive on maturity only the amount specified in the policy, but on a “with profits” policy he is entitled to receive in addition, the amount of bonuses declared on each valuation. On each valuation, the amount standing to the credit of Life Fund which is in excess of net liability, as determined by the actuary, is distributed among the shareholders and the policyholders. The share of the policyholders is paid to them as the bonus, either in cash on the declaration or by reduction of future premiums, or on the maturity of the policy. Until the bonus is paid, it does not figure in the Revenue Account and is not payable in cash immediately but is to be payable at the time of the claim; it is described as Reversionary Bonus. The amount of Reversionary Bonus is included in claims.