How do we find out the cash value of endowment plan? - Seedly
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Endowment Policies


Investment Linked Policies (ILP)

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Asked 3w ago

How do we find out the cash value of endowment plan?

I have a Aviva ILP maturing in 3 years time.

Yearly premium $2400 for 20yrs.

Total premium paid is $41K.

Basic Sum assured is 43K and Fund value is 11K.

Net surrender value is 44K.

What is the cash value? 44K or 54K?

I have no intention to surrender the plan now. Just want to find out what is the IRR for this plan. Appreciate some advice.


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Net surrender value is the amount you get if you surrender today. This takes into account all loans that were taken from the policy.

The true IRR for the plan will need to be calculated manually. Largely because if this is an ILP with protection, a portion of the funds used monthly will be driven to pay for assurance and life insurance. You can request for your insurer to do one for you if required. Calculating IRR while disregarding the life insurance component is a fundamentally flawed approach for fund performance.

Call up your insurer, and request for an updated policy benefit illustration, they should be able to provide one with the current values of your policy.​​​

1 comment

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Question Poster

3w ago

Thank You!

Type of Plan

Firstly, we need to have a clear understanding of the mentioned plan. This is because a participating endowment policy is different from an investment-linked policy. Therefore, it will be good to know the exact name of the plan alongside with other details before we can give you the most accurate advice.

Sum Assured

Generally, the sum assured refers to the death benefit that will be payable under the policy if death occurs to the insured. In most cases, this amount will not be paid upon the maturity of the plan.

Surrender Value

In order to determine the most accurate surrender value, I will suggest for you to login to your online portal or to contact your agent for a revised policy illustration. This is for the purpose to let you understand the updated projection and figures for your policy. Thereafter, this gives you a better picture on the maturity value. Once you have this information, you wil be able to calculate the IRR.

I share quality content on estate planning and financial planning here.


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Question Poster

3w ago

The plan is Her Assurance which I bought it during bank account opening years ago. I do have a IFA but since the plan is not originated from him. He use the projected policy illustration for my cashflow projection which I feel is not ideal.
Pang Zhe Liang
Pang Zhe Liang

3w ago

I believe this is an endowment policy. Accordingly, your premium is invested into the policy's participating fund. Here is how it works: In order to derive the returns, we need to know the bonus rate that the policy is giving. This can be found from the previous year's return. Once we have this information, get the revised policy illustration and look into the column that is currently giving this yield. That will be the column that you can look into for the yield to maturity. Despite that, this is non-guaranteed return as future bonuses has not been declared yet. More details:

Hey there!

An ILP is different from an endowment plan. An endowment plan is a savings-sorta account that might give you a higher yield than bank savings accounts. An ILP is an investment product that doesnt guarantee returns.

You will have to consult your advisor on the current value of your portfolio. He should be able to find it online in the Aviva portal. Financial planning is an integral part of life. You can reach me here to find out more.​​​

1 comment

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Question Poster

3w ago

I do have the access to Aviva portal and those are the information available to me. Basic Sum assured is 43K and Fund value is 11K. Net surrender value is 44K.