Monday, March 10, 2008

Satisfactory return on Endowment Policy

Hi Mr. Tan,

In Mar 1994, I bought a 14-year endowment with compound reversionary bonus insurance policy from company X, paying an annual premium of $2,390. The policy provides a basic sum assured of $30,000.

Today, this policy has matured. The company has now given a cheque of $45,350, comprising $30,000 sum assured, $12,792 accumulated bonus and $2,558 special maturity bonus. Do you think this is a reasonable return?

REPLY
The return is 4.0% per annum (based on annual premium, payable in advance). It is quite satisfactory.
at

2 comments:

  1. AnonymousMarch 10, 2008 6:40 PM

    4% is slightly above long term inflation. You should have gotten more than 4% considering the high past interest rate. In the future you likely to get about 3%. If you are reinvesting consider funds.

    ReplyDelete
  2. AnonymousMarch 10, 2008 8:53 PM

    sour grape

    ReplyDelete