terminal bonus

If they are paying bonuses, yes. I had one from NPI paid-up in 1963. It matured in 1993, with a terminal bonus amounting to about 5 times the sum assured, and reversionary bonuses of twice the sum assured.

Don't expect that from NPI these days, though.

Endowments -

It also depends on the product and the provider.

In the past, annual bonuses were usually small because they were usually irrevocable. Once declared, they're yours. This being so, it made sense to keep the annual bonus low and the terminal bonus huge. That way the product still looked good in the comparison tables but the company also got to avoid writing cheques it might be unable later to cash.

My fear with endowments is that once the press decided they were rubbish - idiotically, IMHO - their sales collapsed and there remains little reason for an ES or anyone else to pay good TBs. This being so I suspect a lot won't, so why hang on for 25 years? Might as well take the cash back and retain some control.

Reversionary bonuses still are irrevocable if the company stays solvent. Don't forget that terminal bonuses are a relatively new invention. 60 years ago they were unheard of, as far as I can tell.

I've just looked at the records of my various endowments, and the net premiums have always totalled less than the basic sum assured. Obviously it depends on your age, and the older you get, the smaller the difference. Consequently, anyone who complains about not getting their money back is planning to bail out early, when they will suffer the effects of charges and MVAs.

The adverts I've look at would generally suggest that I would be better off putting the money under the mattress if they only paid out the basic sum assured. Of course these are the ones that resort to junk mail, so they may not be representative.