What is included in the payout on death for a whole of life with profit policy?

In a whole of life with profit policy, the payout on death is comprised of several components, which is why the most comprehensive option is the correct one. The sum assured, which is the guaranteed amount the insurer will pay upon the death of the policyholder, forms the foundational part of the payout. In addition, annual bonuses, which are declared by the insurer based on the company’s performance, accumulate throughout the life of the policy and contribute to the total value upon death. Finally, a terminal bonus may also be added, which is an additional payment made at the point of death, reflecting the insurer's profit performance over the lifetime of the policy.

This combination of the sum assured, annual bonuses, and the potential terminal bonus provides a more substantial financial benefit to the beneficiary, showcasing the policy's value as a whole of life assurance product with an investment element.