The correct answer is D. For Non-par policies, returns are disclosed at the beginning of the policy.
A participating policy is a type of life insurance policy in which the policyholder shares in the profits of the insurance company. The amount of the bonus is based on the performance of the insurance company’s investment portfolio. The bonus is usually paid out annually, and it can be used to increase the death benefit, reduce the premium, or purchase additional benefits.
A terminal bonus is a type of bonus that is paid out when a participating policy matures. The amount of the terminal bonus is based on the performance of the insurance company’s investment portfolio over the life of the policy.
A non-participating policy is a type of life insurance policy in which the policyholder does not share in the profits of the insurance company. The premium for a non-participating policy is usually lower than the premium for a participating policy. However, the death benefit for a non-participating policy is also usually lower.
The new guidelines for traditional products state that for participating policies, bonus is linked
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