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Field of Flowers

Protection

"From 1st July 2021, the range of projected investment returns that can be used to illustrate the benefits of buying participating life insurance policies will be adjusted downwards to better reflect what policy buyers may expect to receive going forward.

The Life Insurance Association (LIA) in a press release on Wednesday (June 2) said that the cap for the upper investment return scenario will be set at 4.25 per cent per annum, down from the current 4.75 per cent per annum.

The cap for the lower investment return scenario, meanwhile, must be at least 1.25 percentage points lower than the upper cap. This would mean the lower cap would be 3 per cent if 4.25 per cent per annum is used in the illustration."

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