If you bought Great Eastern investment-linked policy, such as Greatlife Portfolio Insurance and Supreme Flexilink Insurance, you will receive a quarterly statement. If your policy is in forced on 7th of January, your first statement should be printed a few days after 7th April, and subsequently every three months. Almost everybody find it hard to understand the statement. Of course there is exception such as some of my engineers or accountants clients who never asked for my help. So I decided to write a details guide on it.
Look at the sample below:
Letâ€™s break down the details and I will explain how to read each section.
How much is the existing fund?
The first part is the balance of unit brought forward. Your policy money is stated in number of unit. As shown in the example, the policy currently has 917.35 unit of Fund 02 (Lion Growth Fund) and 501.11 unit of Fund 05 (Lion Progressive Fund). So how do we convert the unit into real ringgit value? It is shown in the statement too:
Fund 02 (RM) = No. of unit x unit price = 917.35 x 1.006 = RM922.85
Fund 05 (RM) = No. of unit x unit price = 501.11 x 1.860 = RM932.06
In short, that is the amount of money left in the policy on
Deduct policy fees
In order to pay for the policy fees of RM6/month, Great Eastern deduct 2.97 unit of Fund 02 and 1.62 unit of Fund 05 from the policy on
Deduct Insurance charges
The total insurance charge is RM54.91 from
New premium invested
The policy premium is due on the 5th of every month. You can see that the premium paid is being used to buy more investment fund unit on
Tips: It is better for the policy holder to pay premium for policy older than six years because of the highest allocation after six year.
Actually after you know how to read the statement, you probably wonâ€™t be interested to read the details in the future. But you will be very interested to read this summary page. It shows the total investment value of your policy and also the grand total death benefit, which in this case is equal to the sum of death benefit plus the investment value.
I wish this article will enable you to understand your policy statement in the future. I am glad that you are insured 🙂
I recommend these related articles for further information: