Max-Hervé George versus Aviva, a Quick Update

Recently, ITM posted a blog entitled, The Best Life Insurance Policy Ever . . . Unless Your Name is Aviva, which recounted the good fortune of Max-Hervé George, whose father had purchased a life insurance policy for him when he was a child. The policy guidelines effectively enabled a policy owner to manage the cash value in the policy by essentially backdating his investment decisions. The “crystal ball” policy was issued two decades ago by a company now owned by Aviva. Unfortunately, for Aviva, some believe that the policy’s value could surpass a billion dollars by 2020. From 1997 to 2007, the policy had a projected annual rate of return of 68 percent. If this is an indication of future returns, the Rule of 72 tells us the policy value will double again in just over a year.  And on and on……