What's your view on AIA Smart Rewards Saver(ll)?

To begin with, this is a participating endowment policy. Accordingly, your premium is invested into the insurer's participating fund.

More Details: What is a Participating Fund Singapore

In effect, the insurer will give you a combination of guaranteed and non-guaranteed returns (typically in the form of reversionary bonus, and terminal bonus).

More Details: Reversionary Bonus and Terminal Bonus Singapore

At this point, you will realise that the gains in the plan is heavily dependent on the performance of the insurer's participating fund. Accordingly, this is their latest performance: AIA Participating Fund Performance

Note: It must be remembered that past performance is not an indicator for future performance.

In order to sustain and deliver a stable rate of returns over time, most insurers will deploy a technique known as smoothing of bonuses.

More Details: Smoothing of Bonuses Singapore

Given all these information, you will need to compare against similar instruments in the market to determine whether the insurer is capable of delivering the promised returns (typically stated in the policy illustration).

At the end of the day, it is all about balancing risk and return to give you the desired yield.

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