By: Adrian Khiat I received a letter from one of the big insurance company, which I have a Life policy, with regards to their 2008 bonus declaration. I am disappointed to see that bonuses had not increase despite the equities bull run since 2004. I am not too optimistic in the next few years if the global economy do not do perform and when the effect of the industry-wide recent change in tax treatment of participating policies is felt. Well. I'm not going to discuss on the Participating Funds returns today, I just like to share with you guys what exactly is a "Life Participating Fund". 1) What is a Life Participating Fund? 2) What is main aim and objective of such Fund? 3) What returns can we expect from such Fund? 4) What bonuses are declared from such Fund? 5) Will bonuses be reduced when global economy is bad? 6) How are bonuses declared? 7) Must Insurers give good bonuses when economy is booming? 8) Are Participating Fund Returns important? Click here for Adrian's answers.