Yield on Endowment Plan

Dear Mr Tan,

I have a plan which I have paid a total of S$114,517 over 13 years using my CPF. I received a letter stating the projected value of maturity on 10 March, 2007 is S$136,271 and yield is 3.85%.

Looking at the amount of premium paid and the maturity value, I am sure the yield cannot be 3.85% as stated.

If I am right, can I bring the case up to either MAS, CPF or LIA. I am seeking your opinion because I trust only you in this insurance industry.

LC

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Dear LC

My calcuation shows the yield to be 2.45%, if you pay the premium yearly, and 2.63% if you pay the premium monthly.

Perhaps you should clarify with the insurance company. They might have made a genuine mistake in their calculation.

If it is a deliberate attempt to mislead you, then you have a case to make a complaint.