This is demonstrated by a section of your policy called the Benefit Illustration Agreement. In this agreement you are shown returns that are based on projections rather than promises. So if they tell you that 20 years from now your investment should, and the emphasis is on should, have grown by 10% a year, it is by no means a guarantee.

In reality, the Benefit Illustration Agreement is a document telling you what you could earn if the fund managers do an average job. What is also often forgotten is the effect of inflation on those returns. So R1-million might sound like a fortune today but in 20 years from now it may not even buy mid-range car.

When the Benefits Illustration Agreement was first introduced, the projections depicted growth of between 12 and 15% on your investments. This was based on certain historical returns, yet very few policyholders received the projected figures. Eventually, the outcries forced insurance companies to lower their yield projections.

Even though the illustrations have been lowered, they still do not often enough reflect reality. Many people have been led to believe that the illustrated projections are guaranteed minimums, and are then devastated when they find out that instead of a jet set lifestyle in retirement they have to settle for mediocrity.

You can do two things to prevent this. Firstly, avoid combining your risk cover with investment savings - rather take out life cover separately and invest in a more cost-effective and higher yielding vehicle.

Secondly, keep your eye on the ball. If your investment is not performing, do something about it. Don’t sit around hoping for better days, change your portfolio and, if necessary, seek a second opinion. Living blindly in the hope that a 20-year projection will actually materialise is a sure way to set yourself up for a huge disappointment. Don’t believe promises. Believe in results and if you are not getting them on an annual basis, it’s time to redefine your strategy.