A life insurance company has launched a new product with a new angle. They claim to provide an income to the policyholder during retirement.

I saw a benefit illustration given to a young man at age 30. The life insurance policy has many complicated features that baffle me. The consumer asked for my views. Frankly, it is a waste of my time to analyse these types of products that are designed to distract consumers from the poor yield and to benefit the insurance agents and the insurance companies.

Anyway, I looked at the benefit illustration and found that the cash value at the end of 25 years is less than 60% of the accumulated premiums, i.e. the deduction is more than 40%. The yield is only 1.4%, which is terribly low. The insurance agent distracts the consumer by talking about the monthly income during retirement. The agent pressurized ......