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Commerce · Q138

Insurance

Graduate and Post Graduate · Commerce · question 138

Q138

Terminal bonus is payable at the time of

A.
Surrender
B.
Maturity/death
Answer
C.
Loan
D.
None of the three

Answer: Option B

Solution

Answer: Option B
Solution:
Terminal bonus is also known as persistency bonus which is paid once, i.e. at the time of maturity of the policy. It is a sort of loyalty bonus given to a policyholder for maintaining the policy till maturity.