10Life Short Term Savings Scoring Methodology

1. Overview

Guaranteed Internal Rate of Return (IRR) at Target Savings Period

The savings return, in terms of IRR, is derived for each product at each target savings period. The return is then benchmarked against the yield on government bonds denominated in the corresponding currency, i.e. HKD, USD and RMB, for the score calculation.

2. Score Details

The insurance company is obligated to pay a guaranteed amount to the policyholder at maturity. While the main feature of the product is the guaranteed return at maturity, the policyholder may face liquidity risk before maturity. If the policyholder chooses to surrender before maturity, they may suffer losses as they may only get back a portion of the premium paid. Regardless of policy maturity or early surrender, 10Life calculates the guaranteed IRR at the target savings period, benchmarked against the comparable yield on government bonds denominated in the corresponding currency and maturity for the 10Life Short Term Savings Score with relevant mathematical modelling.

3. Assumptions

Lump-sum or regular payments
Currency: USD, HKD or RMB
Target Savings Period: 1-8 years

Updated on 16 May 2023

Disclaimer

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Short Term Savings Insurance Scoring Methodology

Short Term Savings Insurance Scoring Methodology

Guaranteed Internal Rate of Return (IRR) at Target Savings Period

2. Score Details

3. Assumptions

Disclaimer