The net yield to the policyholder is between 1% to 2% and the reduction from the gross yield is almost 3%. I find this policy to be too expensive and gives a poor yield to the policyholder. The cash value comprise of a guaranteed portion and a non-guaranteed portion. If the bonus is reduced in the future, i.e. the non-guaranteed portion, the net yield will be even lower. It is better to buy a term insurance and invest the difference in a low cost fund. See Practical Guide on Financial Planning.
Year Premium Cash Value Gross Yield Net Yield Reduction 25 2727 77021 3.75% 0.93% 2.82%25 2727 90419 5.25% 2.11% 3.14%