I posted the case of a policyholder who paid an annual premium of $2,000 and received $54,000 after 21 years (yield of 2.2%).
A similar policy, taken with another insurer, would have given a yield of 5% p.a. giving a payback of $75,000. The difference is $21,000 or 39%.
Where did the $21,000 disappear to? It went into high expenses or are retained in the fund to "smooth the bonus". There is lack of transparency and fairness. The policyholders are at the mercy of the insurance company!
A good way to overcome this problem is to introduce the calculation of asset share for each individual policy, as implemented in Malaysia.
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