Terminal Bonus would _________ with the duration/term of the policy.

Increase
Decrease
Either increase/decrease
Bear no connection

The correct answer is: A. Increase

A terminal bonus is a lump sum payment that is made to the policyholder when the policy matures. The amount of the terminal bonus is typically based on the amount of premiums paid into the policy and the length of time the policy has been in force. Therefore, the longer the duration of the policy, the larger the terminal bonus will be.

Here are some explanations for each option:

  • Option B: Decrease. This is not the correct answer because the terminal bonus typically increases with the duration of the policy.
  • Option C: Either increase/decrease. This is not the correct answer because the terminal bonus typically increases with the duration of the policy.
  • Option D: Bear no connection. This is not the correct answer because the terminal bonus typically increases with the duration of the policy.
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