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AIA vs Ceylinco: Retirement Plan Analysis

This document evaluates three retirement plan options from AIA Insurance and two options from NSB and Ceylinco. It summarizes the present value of total payments over 20 years, present value of dividends, and profit/loss for each option. AIA Option 3 is the only profitable option. Though all options show a loss, the plans provide benefits like remaining installments being paid to beneficiaries in case of early death. AIA and Ceylinco also offer additional health benefits. In conclusion, while the retirement benefits may not be profitable, the death and health benefits provide value.

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DimuthuSuranjana
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7 views2 pages

AIA vs Ceylinco: Retirement Plan Analysis

This document evaluates three retirement plan options from AIA Insurance and two options from NSB and Ceylinco. It summarizes the present value of total payments over 20 years, present value of dividends, and profit/loss for each option. AIA Option 3 is the only profitable option. Though all options show a loss, the plans provide benefits like remaining installments being paid to beneficiaries in case of early death. AIA and Ceylinco also offer additional health benefits. In conclusion, while the retirement benefits may not be profitable, the death and health benefits provide value.

Uploaded by

DimuthuSuranjana
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Evaluation of Retirement plan

Amount paid : 100000 per year


Discount Factor: 10%
[Link] years: 20
AIA Insurance
Option 01 Option 02 Option 03
PV of Total payments for 20 years at 10% 851,356 851,356 851,356
PV of dividend 542,580 735,283 1,048,364
Profit/(LOSS) 308,776 116,073 197,008
LOSS LOSS Profit

Other

in case of a death, they will pay the


installments for the balance
[Link], payment will be made at
retirement [Link] health benefits are
also available

Option-1: 4% dividend payment=3651276


Option-2: 8% dividend payment=4948069
Option-3: 12% dividend payment=7054940

NOTE-01: This is calculated based on 7.25% Interest rate (current CBSL SDFR rate)
NOTE-02 : This is calculated based on 7.00% interest rate
NOTE-03: This is caluclated based on 9.00% interest rate

Conclusion:
All Retirement benefits are not [Link], in case of early death it is [Link] comparing all three options, A
Since they pay remaining installment in case of a [Link], they have health benefits scheme also.
NSB Ceylinco
Option 01 Option 02
851,356 851,356 851,356
626,084 609,193 760,239
225,272 242,163 91,117
LOSS LOSS LOSS
NOTE-01 NOTE-2 NOTE-3

Ceylinco Life Retirement Plan


policyholders will be eligible
Account holders of for additional rewards as a
NSB Pension+ tribute for their loyalty. All
Scheme are entitled policyholders stand a chance
to a Medical to take part in the Ceylinco Life
Reimbursement Family Savari consumer
facility promotion.

comparing all three options, AIA is having the better other benefits scheme

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