with profit policy
 - form of life assurance policy which, on maturity, entitles the beneficiary to participate in the profits of the life assurance or pension fund involved.

Under a conventional policy the insurance company declares bonuses during the life of the contract (known as reversionary bonuses) which once allocated to the policy cannot be taken away. In addition a final (terminal) bonus may be paid at the end of the policy term. Under a unitised policy the investment purchases units within a unitised with-profits fund. Some companies reserve the right to adjust the value of such units in extreme circumstances, this is known as a market value reduction.