Yield on life insurance policies

A consumer sent me the benefit illustration for three plans. I have calculated the yield to be as follows:

Plan	Term	Yield p.a.	Reduction in yield
Growth - single premuim	5 yrs	2.94%
Growth Link (AIM) - single premium	30 yrs	3.52%	1.73%
Revosave - monthly premium	15 yrs	2.82%	2.43%

The return on the growth plan is fairly  satisfactory.  The return for the other two plans are not attractive, considering the duration of investment. The are based on a projected yield of 5.25%. If the actual yield is lower, the yield on the policy will be lower than illustrated.

If you are investing for 10 years or longer, you should aim to get at least 4% per annum.

Tan Kin Lian