I have 2 NTUC Income Whole Life Policies from 20+ years ago. I bought them in different years. One has a critical illness rider (yes the agent managed to upsell me to include a rider) and one without.
20+ years ago, I wasn't that financially literate, so the NTUC Whole Life policy looked attractive to me. Total annual premium was less than 1 month take home salary at that time so making the wrong choice wouldn't have caused a financial disaster to me. My naive thought process 20+ years ago was that NTUC was govt-linked and would perform better than private insurers that are looking to maximise their own profits. Technically that's not correct but just sharing my thought process in going with NTUC.
I saw Kyith in Investmentmoats providing an update on his Limited Whole Life Policy and decided to do the maths on mine. Now, I can simply give AI all the info it needs to calculate the XIRR for me.
3.75% and 4.05% over 20+years is a decent return to me since I also got the benefit of term insurance and some CI coverage. As expected, the policy without rider had a slightly higher return. But this is not an apples to apples comparison since the entry year of the policies is different and that could affect the overall return.
No comments:
Post a Comment