Many consumers have asked for my views on the life insurance policies that they have bought previously or are being recommended to them now. These are mostly whole life or investment-linked policies that are intended to provide insurance protection and as a form of savings for the future.

I wish to present the results of my analysis in this book. They represent the policies that are now sold in the market in Singapore. I have removed the name of the consumer and the insurance agent from the benefit illustrations.

The focus of my analysis is on the amount of the accumulated premium that is taken away from the consumer. Most of these products offer a modest amount of insurance protection which, in my view, should take away 10% of the premium. The remainder is invested to earn an investment yield that should be returned to the consumer. The insurance company can take away another 10% for the investment service. It is fair for the insurance company to take away a total of 20% of the accumulated premium over a period of 25 years. This is my benchmark for a life insurance policy that is fairly priced to the consumer.