Guide to calculation on Benefit Illustration

[lewissac]

I recall sometime back in 2010 there's some good article/ guide that explains on how to calculate the RIY, effect of deduction, etc from the benefit illustration to determine if the policy is worth it or not. However I couldn't find it anymore.

I wonder if any kind souls that can lead me to those guides? As I need to reevaluate my policy again.

Thanks!

 

[Mecisteus]

So did you manage to find the thread?

Just tabulate your cashflows with their date into an Excel file. 1 of the rows will be the date and maturity value.

Make use of the XIRR function to calculate the yield of your policy.

The effect of deduction is generally the same for all participating insurance policies. The first 2 years of premiums will go to the insurance company.

 

[dendii]

I recall sometime back in 2010 there's some good article/ guide that explains on how to calculate the RIY, effect of deduction, etc from the benefit illustration to determine if the policy is worth it or not. However I couldn't find it anymore.

I wonder if any kind souls that can lead me to those guides? As I need to reevaluate my policy again.

Thanks!

You can post the figures up if you are unsure and we can help as well.