Our Singapore-dollar (SGD) denominated Participating (Par) policies purchased from 1 July 2021 will reflect the latest set of illustrative investment returns in accordance with the LIA Guidelines on Policy Illustrations 2021.
The LIA has made a downward revision on the caps for illustrative investment returns for Par policies in consideration of the sustained low interest rate environment.
The new caps for the upper and lower Illustration Rates are now 4.25% p.a. and 3.00% p.a with effect from 1 July 2021. This is a reduction from the 4.75% p.a. and 3.25% p.a., which were in use before. The new illustration rates provide a more realistic range of projected investment returns.
These upper and lower illustration rates are for illustrative purposes only. These rates will not affect the actual returns of existing and future Par policies. They also do not represent upper and lower limits of the investment performance of the Participating (Par) Fund. The actual returns you can receive from your policy will depend on the actual experience of the Par Fund.