Whether Mr. Anand is entitled to receive the bonus amounts on any of the two policies? What is the difference between interim bonus and terminal bonus ?

Yes, Mr. Anand is entitled to receive both Interim and Terminal Bonus amounts in whole Life Insurance Policy. Interim bonus will be entitled for two valuation dates in a year and Terminal Bonus is Final Bonus declared on maturity. In this case, with death of Mr. Anand terminal bonus is also added. Interim Bonus declaration is to be done by the end of a financial year, however in this case where the death of the insured Mr. Anand happens the life insurance company declares an interim bonus. This is because while the policy might have accrued a bonus from the last financial year, the maturity or claim date falls between two bonus declaration dates. Hence there may be a short duration for which the policy may miss out on the bonus. To ensure that the policyholder or their beneficiaries are not at a disadvantage, a bonus is added on a pro rata basis as per interim bonus rates announced by the insurer. Terminal Bonus is paid only when the policy matures or upon the death of the insured. In this case Mr. Anand is entitled to receive terminal bonus. This bonus is dependent on the performance of the policy over the years and is subject to the insurer declaring it, in order to benefit policyholders. Interim Bonus Terminal Bonus Purpose Compensates for the period from the last bonus declaration date to the date of claim (death or maturity). Provides an additional reward to policyholders who have held the policy until its maturity or to the beneficiaries if the policyholder dies. Timing Paid during the interim period when the policyholder dies or the policy matures before the next regular bonus declaration Paid at the end of the policy term or upon death. Calculation Typically calculated on a pro-rata basis for the period since the last declared bonus. Based on the insurer's performance over the entire term of the policy and is usually a percentage of the sum assured or accrued bonuses.