Assume that the policy was issued on 1 January 2020:
| End of Policy Year | Benefit Illustration at the Point of Sale | Actual Declaration | ||
| Non-Guaranteed | Non-Guaranteed | |||
| Accumulated Dividends and Interest | Terminal Dividend | Accumulated Dividends and Interest | Terminal Dividend | |
| 1 | 1,000 | 0 | 1,000 | 0 |
| 2 | 2,030 | 100 | 1,830 | 70 |
If on 1 January 2021, the annual dividend declared is $1,000, the fulfillment ratio for the annual dividend for Policy Year 1 is 1,000/1,000 = 100%. The fulfillment ratio for the terminal dividend is not applicable, as there is no terminal dividend amount illustrated at the point of sale and actually declared.
If the policy is still in force on 1 January 2022, the annual dividend declared is $800, together with the accumulated interest of $30, so the total accumulated dividend and interest is $1,830. The fulfillment ratio for the annual dividend at Policy Year 2 is 1,830/2,030 = 90.1%. If the policy is terminated at this time point with an actual declared terminal dividend amount of $70 (compared to $100 illustrated at the point of sale), the fulfillment ratio for the terminal dividend at the end of Policy Year 2 is 70/100 = 70%.
Assume that the policy was issued on 1 January 2020:
| End of Policy Year | Benefit Illustration at the Point of Sale | Actual Declaration | ||
| Non-Guaranteed | Non-Guaranteed | |||
|
Accumulated Reversionary Bonus (Cash Value) |
Terminal Bonus (Cash Value) |
Accumulated Reversionary Bonus (Cash Value) |
Terminal Bonus (Cash Value) |
|
| 1 | 1,000 | 0 | 950 | 0 |
| 2 | 2,000 | 100 | 1,720 | 50 |
If on 1 January 2021, the accumulated reversionary bonus at cash value declared is $950, the fulfillment ratio for the reversionary bonus for Policy Year 1 is 950/1,000 = 95%. The fulfillment ratio for the terminal bonus is not applicable, as there is no terminal bonus amount illustrated at the point of sale and actually declared.
If the policy is still in force on 1 January 2022 and the accumulated reversionary bonus at cash value is $1,720, the fulfillment ratio for the reversionary bonus for Policy Year 2 is 1,720/2,000 = 86%. If the policy is terminated at this time point, with an actual declared terminal bonus with a cash value amount of $50 (compared to $100 illustrated at the point of sale), the fulfillment ratio for the terminal bonus for Policy Year 2 is 50/100 = 50%.
It should be noted that only the cash value of the bonuses is used in the calculation.