According to the latest projection from the insurer (as checked from its online portal), the projected surrender value at age 65 is $85,099. This includes both the guaranteed and non-guaranteed components.
I worked through the maths and the Internal Rate of Return (IRR) worked out to be 3.97%.
Its cash value, if the policy was surrendered now, is estimated to be $29,810. Suppose she cashed out this sum and invest at a 6.5% return, and she continued to contribute the annual sum $613.80 to this investment, she could achieve an IRR at age 65 of 4.9% for a sum of $112,503.
At 5% returns, the IRR would be 4.12%, $89,009.
At 6% returns, the IRR would be 4.64%, $104,058.
At 7% returns, the IRR would be 5.15%, $121,624.
At 8% returns, the IRR would be 5.65%, $142,108.
At 9% returns, the IRR would be 6.15%, $165,968.
At 10% returns, the IRR would be 6.63%, $193,730.
My assessment is that 6% to 9% investment return is in fact achievable with a well considered dividend-yielding value investment in SGX shares. Not unlike my fantasy soccer team.
The possibility of generating $104,058 to $165,968 by the time she is age 65, and yielding dividends of 4% would imply a passive income in the range of $4,162 to $6,639 per year. That's $347 to $553 per month.