My 10th Resale Insurance in 2023

I have just committed to buy this 10th resale insurance.  Resale Insurance are second-hand surrendered policy.

This original new policy started in Mar 2019, it was surrendered. 

I will buy over in Aug 2023:

Aug23 initial lump sump premium: $24,142

Mar24: premium: $6,019 p.a.

Mar25: premium: $6,019 p.a.

Mar26: premium: $6,019 p.a.

Mar27: premium: $6,019 p.a.

Mar28: premium: $6,019 p.a.

Total premium invested: $54,237

Upon maturity in Mar 2029,

Guaranteed payout: $61,620

Projected maturity payout: $66,764

calculated xirr: 5% (rate of return)

This is my 3rd resale insurance bought this year.

This policy is transacted by 3rd party (with TES Capital).  The transfer will be signed and transacted at the Insurer Branch; so it was safe and official.

~~~~~

These 10 Resale Insurances (Total Premium = $294k) will generate a total combined maturity payouts of $410k.

These premiums were paid from 2017 to 2032.  A total of 11-years to generate profit of $410k - $294k = $116k (projected).

Total gain = ($410k - $294k)/$294k x 100% / (2032 - 2021) = 40% gain over 11-years (or 3.5% p.a. yield)

If as an annuity drawdown for age 65 to 85, it will provide $410,000 ÷ (85-65)/12 = $1,700 p.m. for retirement.

Even if with 20% reduction in maturity payout, it will provide:

($410,000×0.8)÷(85−65)÷12 = $1,350 p.m.

This will augment my CPFLife BASIC payout, at age 65, $2,200 ~ $2,500 p.m.

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