Calculation of Endowment Policy

[blurpandasg2014]

Can anyone advice on how the surrender value and non guaranteed projection is determined in the BI? Is there any way to calculate?

For example, this ntuc growth policy has been declaring 1% SA Accumulated at 1%.

Sum assured: $6088.55
Inception date : 7 September 2010
Maturity date: 6 September 2020
Current Net cash value: $6774.10

 

[tangent314]

The current surrender value is the current net cash value.
If you mean the maturity value, it's probably best to get the number from the latest RBI.

You can sort of estimate it by interpolating (6774.10-6563)/(6939-6463)*(7394-6781)+6781 = 7052.86

 

[henrylbh]

The current surrender value is the current net cash value.
If you mean the maturity value, it's probably best to get the number from the latest RBI.

You can sort of estimate it by interpolating (6774.10-6563)/(6939-6463)*(7394-6781)+6781 = 7052.86

I see stars *** on the numbers above.

Can just give the rate of return based on surrender value of 6774.10?

 

[blurpandasg2014]

Actually, what I was asking is how does the insurer determine surrender value and the non guaranteed portion? Is it comprised of only the reversionary bonus or is there more to it?

Any way to find the formula?

 

[littleredboy]

I'm just curious why all these companies have the same formats *

 

[henrylbh]

Actually, what I was asking is how does the insurer determine surrender value and the non guaranteed portion? Is it comprised of only the reversionary bonus or is there more to it?

Any way to find the formula?

If you surrender before maturity, likely you get the guaranteed amount and the latest accumulated reversionary only. Might as well stick to the end to get the terminal bonus as well.

 

[maple96]

This is a participating policy. When I bought mine, the agent already gave some indication on the expected effective yield upon maturity.

Looks like u will get it on maturity. Why bother so much?

Ntuc usually pay what they project, especially this policy (I had one matured a few years ago met target). I also have one maturing end of year, already met target!

 

[blurpandasg2014]

This is a participating policy. When I bought mine, the agent already gave some indication on the expected effective yield upon maturity.

Looks like u will get it on maturity. Why bother so much?

Ntuc usually pay what they project, especially this policy (I had one matured a few years ago met target). I also have one maturing end of year, already met target!

I am using this policy as an example. Want to know how insurers determine the non guaranteed portion and if we are able to determine the figures ourselves by calculation

Hope full this policy will pay the higher end currently is mid point between the 2 projections

 

[blurpandasg2014]

Anyone able to figure out how surrender value is determined?

Death payout is in line with declared rb+tb+sum assured. Surrender value totally doesn't correspond

 

[boredboiboi]

Anyone able to figure out how surrender value is determined?

Death payout is in line with declared rb+tb+sum assured. Surrender value totally doesn't correspond

Surrender value is determined by guaranteed amount+bonus and less off any surrender charges if early termination.

Death benefit is not equal to surrender benefit.

 

[blurpandasg2014]

Surrender value is determined by guaranteed amount+bonus and less off any surrender charges if early termination.

Death benefit is not equal to surrender benefit.

Are the surrender charges transparent to policy holders and able to find in the BI?

 

[boredboiboi]

Are the surrender charges transparent to policy holders and able to find in the BI?

Initially are all illustrated. But every year will send u a letter and update u of your values.