About the author/site · Vocus @WUCJ ↗ · Editorial policy
Page version: 2026-08-25 | Official or primary sources are preferred for material rules and figures. AI may assist structure, translation, and code, but is not used as the sole factual source.
It is not a bank time deposit
An insurance premium pays for insurance obligations, costs and reserves. Premium paid is therefore not the same as cash immediately available for withdrawal.
Track premium, guaranteed surrender value and maturity/survival benefits
Build a cash-flow table and calculate IRR. Keep guaranteed benefits separate from non-guaranteed amounts linked to declared rates or other mechanisms.
A declared rate is not a fixed guaranteed rate
Taiwan's current rules require disclosure that declared rates can move higher or lower and are not fixed or guaranteed.
Why early surrender can lose money
Surrender value in early policy years can be below cumulative premiums. A lawful surrender value does not mean full principal is always returned.
Foreign-currency policies add FX risk
A positive policy IRR in USD can still produce a weaker TWD outcome after exchange-rate changes.
Simple case
If someone planned to hold a 10-year policy but suddenly needs cash in year 3, a surrender value below cumulative premium can create a liquidity loss. The key issue is matching the policy horizon to the money's real purpose.