On average the YTM returns is about 3%pa for a 30 year old male for a 10 year endowment policy.
Shorter term tenure and older folks will have lower YTM.
Our traded policies for similar duration can be up to 4.5%pa. The 1%~1.5% difference in return will be a very substantial amount over a long period. Please refer to our Purvis table for the various YTM of different tenure.
Regular investors will receive a further discount. T&C applies..
Life policies are front end loaded ie most of the cost of distribution are paid in the initial years by the original policyholders.
The new owner or investor of the policy enjoy a higher return than the original policyholders since most of the cost is already borne out by the original policyholders.