Question

When is the terminal bonus payable in with-profit policies?

a.

At the beginning of the policy term

b.

At the end of each policy year

c.

When a policy matures or on the death of the life assured

d.

When the policyholder decides to surrender the policy

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).When a policy matures or on the death of the life assured Explanation:The terminal bonus in with-profit policies is payable when a policy matures or on the death of the life assured, representing the policyholder's entitlement to a proportion of the fund held back for the purpose of smoothing or earning higher returns.

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Q. When is the terminal bonus payable in with-profit policies?
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