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Max Enhanced Growth Policy
01 Mar 2022 (224 views)  

A policyholder asked for my views about the Max Enhanced Growth policy that be bought 8 years ago.

He sent the benefit illustration to me. 

Here is my analysis.

The annual premium is $17,200 and is payable for 10 years. 

For the last 5 years, there is a guaranteed SB payment of $17,200 which can be used to pay off the premium due. So, the policyholder is only required to pay $17,200 for 5 years, giving a total premium of $86,000.

The maturity benefit consisted of $74,787 (guaranteed) plus a non-guaranteed portion of $22,884 giving a total of $97,671. This is $11,671 more than the total premium paid for 5 years. 

Considering that the premium was paid during the first 5 years and the maturity benefit is paid at the end of the 10th year, the return is about 1.6% p.a.

I consider this return to be poor, but it is the nature of the contract. 



 


Max Enhanced Growth Policy
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A policyholder asked for my views about the Max Enhanced Growth policy that be bought 8 years ago.

He sent the benefit illustration to me. 

Here is my analysis.

The annual premium is $17,200 and is payable for 10 years. 

For the last 5 years, there is a guaranteed SB payment of $17,200 which can be used to pay off the premium due. So, the policyholder is only required to pay $17,200 for 5 years, giving a total premium of $86,000.

The maturity benefit consisted of $74,787 (guaranteed) plus a non-guaranteed portion of $22,884 giving a total of $97,671. This is $11,671 more than the total premium paid for 5 years. 

Considering that the premium was paid during the first 5 years and the maturity benefit is paid at the end of the 10th year, the return is about 1.6% p.a.

I consider this return to be poor, but it is the nature of the contract.