Question about rate of return on insurance product - Am I missing something?

From the description, there is not much that i can gather from this. Though the indication fo 4.75% could be a "Participating Plan" where MAS regulated for such benefit Illustration.

Hence for me, i am assuming it to be a retirement / lump sum anticipated endowment for the purpose of discussion.

(1) the 4.75% is the par funds returns. Meaning, you see any investment right, they say "oh i got 4.75% returns". it means this.

The returns that you get is AFTER fees. So the calculated IRR is correct imho. To double confirm, most policies now have this line

At 3.25% returns, the IRR of the policy is X.XX%

At 4.75% returns, the IRR of the policy is X.XX%

This is my bread and butter as i do 2nd hand insurance buyback and rely on the benefit illustrion explicitly.

Also, for this, you should be using XIRR (time weighted internal rate of return) more (because there is cash in and cash out at different rates).

Money weighted returns is important if you value the overall interest you earn.

I second Pang Zhe's comment about not getting so called wealth management products from banking channels. Its a fast and furious game out there and there's hardly any after sales service from what I experience.

And frankly, at 1.9% it should not even be termed a growth product.

Not sure about your risk profile but you may wish to read up more about investments on your own so that you can make better investment decisions and be exposed to the other instruments that are out there.

If you prefer to be hands off, consider using a robo advisory.

Hope this helps.