1) Investment Return %
All the Life/Endowment policy will indicate the projected return based on around 3.25% and 4.75% ( Different Insurance companies may indicate slightly different % return )
Please take note, if you like to compare it with the saving bank interest rate. This is not the info you looking for. You should zoom into to small Note below the Benefit Illustration table looking for the yield at maturity % p. a return to compare it with the bank saving interest rate or other investment returns.
Example as below
2) Participating Fund Performance
This information is important as from the information you can judge whether the Insurance company can meet the higher projected investment return E.g 4.5% (Maturity yield of 3.44%) using the above example.
Following are the Participating Fund Performance for Some of the Singapore Insurance Companies :
a) GE
b) Manulife
From the above four Insurance companies fund performance analysis, Manulife's average 3 years return is the worst. NTUC is the only Insurance company in Y2018 that generated positive returns.
3) Expense Ratios
Expanse rations are the cost of managing the participating fund, so the lowest the % the better.
Following are the Expense Rations for some of the Singapore Insurance Companies :
a) GE
From the above four Insurance companies Expense Ratios analysis,
Manulife's is the worst as it incurred higher costs. NTUC incurred the lowest costs.
4) Total Distribution Cost
The Total distribution cost is how much you are paying for the distribution cost. The lowest cost the better.
E,g a) You dived the distribution cost by the Premium paid ($12376/$180073) you get 6.87% which is a very high cost!
E.g b) $5828/$160000 only 3.6% !!!
In Summary, do your homework, no need to rush, take your time to find out all the similar policies from all insurance companies, did the analysis , and invest in the most value for money policy.
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