Monday, June 09, 2008

Cash value on education policy

Dear Mr. Tan
My child's education policy matured lately. However, the increase in cash value is lower than the previous three years. I though that the value should increase more, according to the duration.

Below are the cash values:

Year Cash value Increase
2005 $37,956
2006 $44,734 $6,778
2007 $49,461 $4,727
2008 $52,397 $2,936 (maturity)

Is the maturity amount applied to everyone in the same age group and sum insured? In 2003, the insurance company send a letter stating that the estimated maturity amount is higher than the $52,397.
JT

REPLY
I suggest that you write to ask the insurance company. Their actuary should be able to give you an explanation.

No comments:

Blog Archive