I have a whole life Policy (death/tpd) and another 3 for CI/TPD/death. I no longer need insurance for death as I do not have any dependents and soon the whole life Policies to cover tpd will end. I will still need CI, so I intend to keep at least one.
So I decided to take a close look at the returns.
Using interest Rate calculator available on internet, I decided to work out the compound interest rate my policies are giving me.
One whole life policy which I am paying monthly premium for more than 30 years is giving me about 5% pa compound interest, while another is giving me about 4%.
I just received bonus payment on the policies and decided to work out the returns using the surrender values now compared to one year ago. Wow, one policy gives me a return of 11% pa for the past one year, while another 7% pa.
Wow, then I should continue to transfer monies from my bank account to the insurer every month to earn higher interest right?
