Policyholder decided to keep the Growth policies

A policyholder invested in our Growth policies (ie single premium endowment policies).

She was approached to invest in a fixed deposit at a preferential rate of 3.45% for one year. She wanted to surrender the Growth policies to re-invest in this deposit. Based on the current surrender values, the yield for the past 4 years was about 2.5% per annum.

I sent to her the following facts. If she continued the Growth policies to the maturity date, the average return for the entire period increases to 3.5% per annum, based on our current bonus rates.

However, if we measure the cash value now now and the projected value at the maturity date, the return increased to an average of 5.2% per annum. It was clear that the policyhholder will get a better return by keeing the Growth policy to maturity.

She replied,

Dear Mr Tan

Thanks for dispensing good advice and information. I really do appreciate the efforts taken by you, and Jessie Wong.