What's the difference between Aviva MyLifeIncome and the latest iteration, MyLifeIncome II (Seems like the guaranteed bonus has been revised to 0.95% from 2.2%...)?

Hi anon,

The new plan has payouts of up to 6.35% of Sum Assured every year, (the older version was up to 6.2%) This comprises of Guaranteed Cash Benefit (0.95% of sum assured) + Cash Bonus (up to 5.40% of sum assured).The previous version was 2.2% of sum assured and cash bonu sof up to 4% of sum assured.

There is also a Booster Bonus (up to 0.5% of sum assured) on the payout after you hold the policy for a certain time.

Lastly, this policy can now be bought with SRS monies.

Otherwise, most of the features are similar to MyLifeIncome.

This is essentially a response to the lower interest rates that have resulted in the US Federal Reserve's monetary policy. Since rates have gone back down to 0 in the US, SG rates are also coming down and investment returns will naturally be lower. Insurance companies & any other entities will have a much harder time providing higher guaranteed returns in such an environment.

The offset is that the potential return in a good market could be higher given the higher variable return of 5% vs 4% before.