Growth plan gives a fairly attractive return

A policyholder invested $50,000 in a Growth plan in 2001. It matured 5 years later with a maturity value of $58,000.

The policyholder earned a net return of 3.1% over the past 5 years on the Growth policy.

As the Growth policy has to be invested mostly in short term secure bonds, the return of 3.1% is quite attractive. During the past five years, Government bonds provide a return of around 3%.

Apart from giving a fairly good return, our Growth plan also give life insurance cover, which is built into the contract and not charged separately.

Our aim is to invest the funds prudently, get a fairly attractive return, and return most of the return to our policyholders.

Here is the good news for our policyholders of our Growth plan. The bonus rate has been increased recently. We expect to give better than 3.1% return in future years, based on the higher bonus rates. For a Growth plan that is invested for more than 10 years, the return should be higher than 4% per annum, based on our current bonus rates.