1. 4330 POINTS
    Jerry Vanderzanden, CLU, ChFC
    Co-Founder, Coastal Financial Partners Group, California
    Though 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, 2013
  2. 0 POINTS
    David RacichPRO
    Fountain Hills, Arizona
    Assuming 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
  3. 63333 POINTS
    Peggy Mace
    Most 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, 2013
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