By MoneyBees
The yearly return (IRR) of a guaranteed savings plan from its benefit illustration, at maturity and if you surrender early, next to SSB, T-bill and CPF rates.
An endowment policy that promises a set sum at maturity, sometimes with payouts along the way. You pay a single premium or premiums over a few years. The guaranteed figures are in the benefit illustration.
Use the guaranteed maturity value and the premiums from the benefit illustration. The calculator finds the yearly compounded return, the IRR, that turns those premiums into that payout.
You get the surrender value, which can be less than you paid or even zero. MoneySense notes some plans have no cash value in the first three years. Enter the guaranteed surrender value to see the return if you stop.
The calculator sets the plan's return next to the latest Singapore Savings Bond and T-bill rates from MAS, and CPF interest. SSBs can be redeemed in any month without penalty; a policy's surrender value is set by the insurer.
SDIC's Policy Owners' Protection Scheme covers guaranteed benefits of life policies, up to S$500,000 of guaranteed sum assured and S$100,000 of guaranteed surrender value per life assured per insurer.
They are the illustration rates LIA Singapore caps for Singapore dollar participating plans since 1 Jul 2021. They show what non-guaranteed bonuses might add if the insurer's fund earned that much.
compareFIRST, run by LIA, CASE, MAS and MoneySense, lists endowment policies side by side and sorts them by guaranteed payout, total premium and premium term.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).