Background Firstly, it will be good to go back to the basics by understanding what is a participating endowment policy. Generally, it consists of basic insurance coverage, together with cash value from the participating fund. Participating Cash Value Now, to answer your question, it is important to understand how a participating fund works: https://www.blog.pzl.sg/what-is-a-participating-fund-singapore/ For the most part, it is important to understand the investment allocation made by the participating fund. For instance, one company may place greater emphasis on equities in order to give policyholders the same rate of return as compared to another insurance company that placed greater emphasis on bonds. As a result, most of us prefer a more conserversative route since it is unnecessary to take additional risk than required for the same return (to policyholders). Furthermore, this leads to higher expenses which will indirectly affect the policyholders (explanation in my post on participating fund). Next, we will find out how we get our cash value in return through declared bonuses: https://www.blog.pzl.sg/reversionary-bonus-and-terminal-bonus-singapore/ Some of the insurance plans adopt the concept of smoothing of bonuses in order to give the same rate of returns to the policyholder. Here is how it works: https://www.blog.pzl.sg/smoothing-of-bonuses-singapore/ After an introduction to the participating fund, it is always good to consider insurance companies with proven track records. For example, here is the latest result from AIA: https://www.blog.pzl.sg/aia-singapore-participating-fund-update-2018/ So how? All in all, I have highlighted some of the key points to look out for when choosing a good participating endowment policy that is capable of providing a stable rate of return over time. On balance, track records is one of the best thing to look out for since the future will always be uncertain. Here is everything about me and what I do best.