1. 5082 POINTS
    J Paul Wilson CFP, CHFC
    Certified Financial Planner, JPW Insurance Retirement Investments, Halifax, Nova Scotia, Canada
    What sounds like a simple question, actually requires a two part answer. Life insurance creates cash at death. Calculating the rate of return for the death benefit would involve the ratio of the total premiums paid to the total death benefit including dividends if any. In the early years the rate of return would be very high.
    The rate of return on the cash value is often referred to as the internal rate of return (IRR) and involves the ratio of the premiums paid less any riders to the cash surrender value.
    If you have further questions, please do not hesitate to contact me.
    Answered on September 14, 2014
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