Just for curious, I couldn't apply CAR calculation on the insurance plan due to the on going annual/quarter/monthly insurance premium payment along the period. CAR only taking initial and final value to calculate the return.

To calculate CAR,

Formula: ((Final Value / Initial Value)^(1 / number of years)) - 1 (X 100 for %)

If you don't have an even number of years, use (12 / number of months) or (4 / number of quarters)

Is there any better way to calculate return of the insurance plan?

Thanks,

Hi KC,

Thanks for the sharing, very much appreciated!

"licensed qualified financial planners/advisers don't even understand it", that's the scariest part of all. They're the one suppose to guide and explain to customers at first place. So the issue is not at the insurance plan itself but on the peoples who selling it, as always.

Anyway, thanks again!

Hi KC,
Referred to your post on 26/04/2015 18:56,
"A with profit insurance policy can never yield a return of even 5%".

Do you mind to share more details on that? I know it's kinda out of topic, but following the link below,

http://www.investmentmoats.com/budgeting/do-your-insurance-saving-plans-endowment-give-you-3-to-5-returns/

From the research done by Kyith, most of the endowment policies returns stood at around 2% to 4% or even worse, as same as your statement here, does it included those savings plans and investment-linked insurance policies?

Thanks,