What Is Terminal Bonus In Life Insurance?
4330 POINTSview profileJerry Vanderzanden, CLU, ChFCCo-Founder, Coastal Financial Partners Group, CaliforniaThough no longer common in US participating whole life insurance, a terminal dividend is an additional policy dividend paid to the policy-holder at policy maturity in addition to annual policy dividends. Mutual insurers (those owned by policy-holders) used to have such terminal "bonus" dividends on some whole life policies under certain conditions.Answered on April 29, 2013flag this answer
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaAssuming the phrase “terminal bonus” means terminal dividend, here is a basic explanation. Participating whole life insurance generally declares an annual dividend. But when a participating whole life policy is surrendered, reserves are freed up and the surrender cash value are enhanced.Answered on July 22, 2013+01+1 this answer
0flag this answerview more answers by David Racich.JPG)
63333 POINTSview profilePeggy MaceMost of the U.S.A terminal bonus (or capital bonus, or final bonus) can be paid upon maturity of a mutual policy. This is a feature of some "with-profit" Whole Life policies in Europe and Canada and other countries in the Commonwealth of Nations. It is comparable to a final dividend in the US.Answered on September 5, 2013flag this answer
Did you find these answers helpful?
Yes
No
Go!
Add Your Answer To This Question
You must be logged in to add your answer.
