The amount paid out by the insurer under a 30-year life insurance policy exceeded the sum insured plus revisionary bonuses. The excess is likely to result from?

The correct answer is: D. A terminal bonus.

A terminal bonus is a one-time payment that is made to the policyholder when the policy matures. It is typically based on the amount of premiums that have been paid over the life of the policy, as well as the performance of the underlying investments.

In the case of a 30-year life insurance policy, the policyholder would have paid premiums for 30 years. If the policy has performed well, the insurer may be able to pay out a terminal bonus that is significantly greater than the sum insured plus revisionary bonuses.

The other options are not correct.

• Charges refunded: This is not a common practice in life insurance. If charges are refunded, it is usually because the policy has been cancelled early.
• A frequency loading: This is a type of premium loading that is applied to policies that have a higher frequency of claims. It is not likely to result in an excess payment.
• A tax rebate: This is a refund of taxes that have been paid. It is not typically associated with life insurance policies.