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%
The problem the yield is NEVER told to the customers and also because the so called executive consultants also don't know how to use the financial calculator. As a result the customers got conned but still don't know until reviewed by a third party like FISCA.
ReplyDeletePeople who bought Vivolife are paying too much even for protection. The saving element is a loss loss . The pitch is pay for 10 years and be protected for life.How long is for life. Many policyholder terminate at age 60-65 and they ares stupid to carry beyond because the insurer will be too happy to receive large revenue at the expense of the cash value.
I advise people with vivolife to have a check with FISCA and find out if the agents mis-sold or misrepresented the product.