Long Term Savings Insurance Scoring Methodology

10Life Score is designed to compare products based on different insurance needs and objectives. The 10Life Score weightings vary according to the insurance objectives, risk level of non-guaranteed returns,  target horizon and insurer fulfilment score (2023) as follows. 

• Male non-smoker age 35;
• Total premium payment amount USD100,000;
• No policy loan taken and no withdrawals of cash value and/or dividend/bonus throughout the policy term.

Guaranteed return is one of the key differentiators between buying a mutual fund and a savings insurance product. 10Life compares the guaranteed return and the projected return of each product against the market benchmark to derive the guaranteed return score and projected return score, reflecting different risk levels at the end of the specified policy period. The detailed methodology is as follows. 

4.1. Returns and Risk Levels of Participating saving plans

When assessing the guaranteed returns and expected returns of policies with different risk levels, we consider the following three factors:

• Guaranteed cash value
• Non-guaranteed cash value
• The structure and proportion of different non-guaranteed bonuses at different target years, such as:
  • The proportion of annual bonuses or cash bonuses to non-guaranteed cash value
  • The proportion of reversionary bonuses to non-guaranteed cash value
  • The proportion of terminal bonuses to non-guaranteed cash value

4.2. Comparing the Cash Values

The three return scores measure the 10/20/30/60-year cash values, assuming the policyholder withdraws the total cash value (including guaranteed & non-guaranteed values) as a lump sum at the end of the 10/20/30/60th policy year.

4.3. Benchmark Return against the Market

For each of the three return scores, 10Life will determine the market benchmark by using the highest cash value in the 10/20/30/60th policy year. The return score is then calculated by comparing the cash value at these policy years against the corresponding benchmark. The benchmarks may be updated from time to time to reflect changes in the market.

Insurer Fulfillment Score (IFS) depends on the following factors:

• Average fulfilment ratio
• Proportion of fulfilment ratios reaching 70%
• Experience factor

10Life Long Term Savings Insurance 5-Star Rating is awarded to the top products under four common financial goals of whole life savings insurance for the policyholder:

• Golden 10 Years
• Education funding 
• Retirement planning 
• Legacy planning 

Each financial goal has its own specified target period, premium payment term and risk preference. The 5-Star Rating criteria for each category are summarised below.

Updated on Jan 06, 2025