A policyholder send this Benefit Illustration to me. She was very angry that the independent financial adviser did not explain to her the charges under this plan. 

She approached a private banker who explained to her why the plan was bad and the charges where high. He also explained the hidden risks under the plan, e.g. the insurance company could amend the charges at their will.

I studied the benefit illustration and found that, contrary to what the private banker had said, the plan was rather fair. I took the average of the projected benefit for 4% and 8% (i.e. 6%) and found the yield based on the surrender value at the end of 10 years to be 4.3%. The Effect of Deduction was an average of 14.2% of the accumulated premiums, based on the two projections.

I know of many similar policies sold in Singapore have an Effect of Deduction more than 30%. I have seen some with a EOF of more than 60%.

This saving plan from Friends Provident take away 14.2% compared to 30% to 60% on similar plans. I cannot fault it. The yield of 4.2% is also satisfactory.

I show the relevant page of the Benefit Illustration below. You can read it and try to calculate the yields and the Effect of Deduction.