Can anyone help me with the underlying calculations in the Statement of Reasonable(!) Projection that I received from my PRSA provider.
The results from my calculations do not concur with the statement values.
Policy value 'x'.
Contribution amount 'y' - paid at the start of the yearly term
Assumed growth 6%.
I would have expected the policy value (without charges) after year 1 to be (x + y) * 1.06.
It's not. It's lower.
If I factor in the allocation rate of 95% to 'y', I get a figure which is closer but still larger than the stated policy value. It's not inspiring confidence.
The value quoted after charges have been applied shows an even bigger discrepancy.
Any help appreciated.
The results from my calculations do not concur with the statement values.
Policy value 'x'.
Contribution amount 'y' - paid at the start of the yearly term
Assumed growth 6%.
I would have expected the policy value (without charges) after year 1 to be (x + y) * 1.06.
It's not. It's lower.
If I factor in the allocation rate of 95% to 'y', I get a figure which is closer but still larger than the stated policy value. It's not inspiring confidence.
The value quoted after charges have been applied shows an even bigger discrepancy.
Any help appreciated.