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Pay special attention to the terminal bonus
28 May 2022 (329 views)  

It is important for the policyholder to pay special attention to the terminal bonus. 

Some insurance companies increased the terminal bonus by a large amount on the 20th or 30th anniversary of the policy.

If the policyholder is not aware about this feature, he might surrender the policy before these anniversaries and receive a low surrender value. 

In the example below, the terminal bonus was $14,152 on year 29 and $28,937 on year 30. 

If the policyholder surrender the policy just a few days before the 30th anniversary, he would get $14,785 less in surrender value. 

It is important for the policyholder to ask the insurance company to provide a post sale benefit illustration (PSBI) and to ask the staff or agent to explain the figures shown in the PBSI. 

The policyholder can also buy the following books to understand the life insurance policy.

https://tankinlian.com/cart.aspx?ID=66

Tan Kin Lian


Pay special attention to the terminal bonus
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It is important for the policyholder to pay special attention to the terminal bonus. 

Some insurance companies increased the terminal bonus by a large amount on the 20th or 30th anniversary of the policy.

If the policyholder is not aware about this feature, he might surrender the policy before these anniversaries and receive a low surrender value. 

In the example below, the terminal bonus was $14,152 on year 29 and $28,937 on year 30. 

If the policyholder surrender the policy just a few days before the 30th anniversary, he would get $14,785 less in surrender value. 

It is important for the policyholder to ask the insurance company to provide a post sale benefit illustration (PSBI) and to ask the staff or agent to explain the figures shown in the PBSI. 

The policyholder can also buy the following books to understand the life insurance policy.

https://tankinlian.com/cart.aspx?ID=66

Tan Kin Lian