A policyholder invest $10,000 a year in an investment linked policy. The benefit illustration showed following projected values at age 65 (after 40 years) based on a projected yield of 8%.
Non-guaranteed surrender value $1,060,000
Effect of deduction $1,792,000
The "effect of deduction" is the difference between the accumulated premiums and the surrender value.
What does this mean? It means that the accumulated premiums is $2,852,000. It means that the policyholder could get $2,852,000 by investing the same annual premium of $10,000 a year on his own.
Find out more here:
http://fisca.sg/Info/414/Beware-of-the-effect-of-deduction
Non-guaranteed surrender value $1,060,000
Effect of deduction $1,792,000
The "effect of deduction" is the difference between the accumulated premiums and the surrender value.
What does this mean? It means that the accumulated premiums is $2,852,000. It means that the policyholder could get $2,852,000 by investing the same annual premium of $10,000 a year on his own.
Find out more here:
http://fisca.sg/Info/414/Beware-of-the-effect-of-deduction
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