What is your Ohio National (AuguStar) whole life policy actually returning?
Your policy illustration shows projected values. It does not show the annualized return on the premiums that produced them. Enter three numbers to see your IRR to date, then run the full analysis against your complete illustration.
ParityPoint is a calculator, not an advisor. It is not affiliated with Ohio National or any carrier, broker, or investment firm.
Finding the values in your Ohio National policy illustration
The full analysis needs your projected cash surrender values at 5-year age intervals, on both a guaranteed and current dividend scale basis. Here is where they live in Ohio National's format:
Ohio National's life insurance company now operates as AuguStar Life, part of Constellation Insurance, and continues to sell and service whole life. If your illustration carries the AuguStar name, the guidance below applies the same way.
Participating Ohio National whole life illustrations separate guaranteed values from values on the current dividend scale. Use the guaranteed cash surrender value column for the guaranteed schedule and the current-scale column for projected values.
As an existing policyholder you retain the right to request a free in-force illustration. Use it for current values, since an original sales illustration may be years out of date.
What the full analysis shows
The report runs IRR on your policy's complete cash flow history, treating every premium as an outflow and the projected surrender value as the outcome, at every key age through 85. It then models an alternative strategy of surrendering, purchasing level term coverage priced to your age, gender, and health class, and investing the premium difference at a return assumption you control. Every assumption is stated and adjustable. It shows what each strategy would pay at death at every age, weighted by the chance of each age from the Society of Actuaries' 2015 mortality table. It also calculates the policy's Linton yield: the return a separate savings fund would need, after buying enough term coverage each year to match the policy's death benefit, to end up where the policy does. The Consumer Federation of America has used that method to evaluate whole life policies since 1984. The report contains no recommendations; it ends with the math.
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Common questions about Ohio National whole life policies
Where do I find the cash surrender value in my Ohio National illustration?
Your Ohio National policy illustration lists values on two bases: guaranteed, and projected on the current dividend scale. Use the net cash surrender value at each age, since that is the figure reflecting what you would actually receive if you stopped the policy. The data entry guidance on this page covers where those columns sit in Ohio National's format.
How do I calculate the IRR on my Ohio National whole life policy?
Treat every premium you have paid as a cash outflow on the date you paid it, and treat the cash surrender value as what you would receive if you stopped today. The internal rate of return is the annual rate that makes those two sides equal. ParityPoint runs that calculation on your full premium history and reports the result at every key age.
How do I get an in-force illustration from Ohio National (AuguStar)?
You have the right to request one from Ohio National (AuguStar) at no charge, and carriers are required to provide it within 30 days. Call the service number on your statement or request it through your online account. An in-force illustration reflects current values, where an original sales illustration may be years out of date.
What does a negative IRR on an Ohio National whole life policy mean?
It means the cash surrender value is currently below the total premiums paid, so the annualized return on money in versus money out is below zero. This is common in the early years of any whole life policy because first-year costs come out of early cash value. The figure changes as the policy ages, which is why the analysis reports the return at every age rather than only today.
Related analysis
How to Calculate the Real Return on Your Whole Life Insurance Policy
The dividend rate against the realized return, worked through on a real inforce illustration.
Should You Surrender Your Whole Life Insurance? The Math You Need
The surrender breakeven on the same illustration, at five return rates.
ParityPoint is not affiliated with, endorsed by, or sponsored by Ohio National or any insurance carrier. Carrier names are used only to identify the company whose illustration formats are described.