We went through some policies such as Aviva’s MyRetirement Choice and OCBC PremierLife Generation showing the projected returns the policy holder could potentially get.

Through the article, the biggest determinant of the policy performance is in the investment return of the participating fund.

So how is the reality versus projection.

We take a look at some historical data today

The Return Performance of your Cash Value Policies

For the uninitiated, we can group insurance protection into 2 groups:

  1. those with cash values
  2. those without cash values.

Your whole life insurance, limited whole life insurance, insurance savings endowments and universal life policies are policies with cash values.

When you buy such policies with cash values, you are TRANSFERRING the job of building wealth to the insurance company.

Your insurance premiums paid contribute to participating funds, which are either the main funds or sub funds formed by the investment managers in …