BT WealthWise Podcast: Par insurance policies – do lower illustrative rates mean lower returns?

BT WealthWise Ep 2: Par insurance policies – do lower illustrative rates suggest lower returns?

13:25 min

Synopsis: Learn to protect and grow your wealth in this new Business Times monthly podcast series for affluent individuals, hosted by BT wealth editor Genevieve Cua.  

In this second episode of the WealthWise podcast, BT wealth editor Genevieve Cua looks into the insurance industry’s reduction of illustrative rates for par policies in July 2021. What does this mean for you?

She tackles the following points: 

What are par policies, and what are the new illustration or projection rates taking effect in July? (1:18)

Why are par policies’ illustrative rates being reduced? (3:52)

Life funds have actually performed well historically, in excess of the upper limit of the current illustrative rate (7:21)

Her expectation of what insurers’ product line-up of par products might look like in July: perhaps a lower level of guaranteed return and longer break-even points (9:08)

Produced by: Genevieve Cua ([email protected]), Ernest Luis, Lee Kim Siang

Edited by: Adam Azlee

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