【Compare Long-Term Savings Insurance】60-Year "Grandparent-Grandchild Plan" Turning $1,000,000 into Half a Billion - Is It Really That Solid?

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Short-term savings insurance focuses on guaranteed returns

Long-term savings insurance is highly favoured by individuals planning for long-term savings. Often, parents purchase savings insurance early on and allow it to accumulate without surrendering the policy. The insured person can be passed down from son to grandson, with the policy spanning three generations and a coverage period of up to 60 years. This is commonly referred to in the market as a "grandparent-grandchild policy."

Using our insurance rating comparison platform, 10Life has identified 10 long-term savings insurance plans with a 60-year term for comparison. We analyse the returns under different scenarios, with some products even projecting a 50-fold return. This means that an investment of USD 1 million today could grow to USD 50 million in 60 years. But how likely is it to achieve such returns? And what should one be mindful of when purchasing long-term savings insurance?

The products compared this time all allow at least one change of the insured person, enabling the policy to be passed down for at least three generations. These include Fubon "Legacy of Creation • Family Treasure" Life Insurance Plan II (Prestige Edition) with prepaid premiums, Generali Transcend Wealth Plus, Sun Life EverBright Savings Plan with prepaid premiums, FWD PrimeLife Elite Life Insurance Plan, Prudential Premier "Regent" Savings Protection Plan II, AIA Prosperous Future • Prime, Manulife Global Currency Protection Plan, Prudential Regal Multi-Currency Plan, and Generali Century Wealth Plus.

The returns from savings insurance are mainly divided into guaranteed returns and projected returns. Short-term savings insurance focuses on offering products with high guaranteed returns and shorter terms, theoretically exposing assets to significant risks for a shorter duration.

While the guaranteed returns of long-term savings insurance should not be overlooked, most consumers who purchase such plans may not prioritise guaranteed returns. Instead, they often aim to leverage the compounding effect over an extended period to grow their wealth and pass it on to the next generation. As a result, it is not uncommon to see some products with a guaranteed return ratio of 100%, equivalent to the premiums paid. This means that if USD 1 million is invested, the guaranteed return one can "definitely" receive at the end is also only USD 1 million.

The expected return in baseline and pessimistic scenarios can differ by more than double.

The Insurance Authority's Guideline 16 stipulates that insurance companies must provide basic, pessimistic, and optimistic scenarios for "expected returns". For now, we will disregard the overly "optimistic" scenario and focus on the first two. The basic scenario can be simply understood as the return rate under normal circumstances; the pessimistic scenario represents returns under less favourable investment conditions or poorer claims experience. The difference between these two returns can be quite significant.

Table 1: Comparison of Long-Term Savings Insurance Based on Expected Return Ratio (Basic)
(Assuming the insured is a 35-year-old non-smoking male, with a contribution period of 1 to 3 years and a 60-year term)

Aggressive Savings Insurance

Fubon
"Regent Elite" Insurance Plan II (Premier Version) Prepaid Premium

Premium Term

Expected IRR
(Base)

6.7%

Expected Return Ratio
(Base)

5031.0%

Expected IRR
(Pessimistic)

4.8%

Expected Return Ratio
(Pessimistic)

1685.8%

Guaranteed Return Ratio

122.9%

Aggressive Savings Insurance

Generali
LionTycoon Beyond

Premium Term

Expected IRR
(Base)

6.8%

Expected Return Ratio
(Base)

4993.5%

Expected IRR
(Pessimistic)

5.9%

Expected Return Ratio
(Pessimistic)

2967.1%

Guaranteed Return Ratio

100.0%

Aggressive Savings Insurance

Sun Life
Stellar Savings Plan Prepaid Premium

Premium Term

Expected IRR
(Base)

6.6%

Expected Return Ratio
(Base)

4668.1%

Expected IRR
(Pessimistic)

4.4%

Expected Return Ratio
(Pessimistic)

1350.5%

Guaranteed Return Ratio

145.2%

Aggressive Savings Insurance

FWD
MaxFocus Vision Insurance Plan

Premium Term

Expected IRR
(Base)

6.6%

Expected Return Ratio
(Base)

4624.3%

Expected IRR
(Pessimistic)

5.3%

Expected Return Ratio
(Pessimistic)

2157.2%

Guaranteed Return Ratio

140.6%

Aggressive Savings Insurance

Prudential
Evergreen Growth Saver Plus II

Premium Term

Expected IRR
(Base)

6.5%

Expected Return Ratio
(Base)

4300.8%

Expected IRR
(Pessimistic)

5.1%

Expected Return Ratio
(Pessimistic)

1983.9%

Guaranteed Return Ratio

151.6%

Aggressive Savings Insurance

AIA
Bonus Power Vantage

Premium Term

Expected IRR
(Base)

6.4%

Expected Return Ratio
(Base)

4239.3%

Expected IRR
(Pessimistic)

3.6%

Expected Return Ratio
(Pessimistic)

819.1%

Guaranteed Return Ratio

100.0%

Aggressive Savings Insurance

Manulife
ManuGlobal Saver

Premium Term

Expected IRR
(Base)

6.5%

Expected Return Ratio
(Base)

4213.8%

Expected IRR
(Pessimistic)

4.8%

Expected Return Ratio
(Pessimistic)

1630.8%

Guaranteed Return Ratio

133.4%

Aggressive Savings Insurance

Prudential
Evergreen Wealth Multi-Currency Plan

Premium Term

Expected IRR
(Base)

6.5%

Expected Return Ratio
(Base)

4187.8%

Expected IRR
(Pessimistic)

4.8%

Expected Return Ratio
(Pessimistic)

1603.9%

Guaranteed Return Ratio

133.6%

Aggressive Savings Insurance

Generali
LionTycoon

Premium Term

Expected IRR
(Base)

6.4%

Expected Return Ratio
(Base)

3928.6%

Expected IRR
(Pessimistic)

5.5%

Expected Return Ratio
(Pessimistic)

2370.7%

Guaranteed Return Ratio

100.0%

As shown in the table above, the 富通「創世．傳家寶」壽險計劃 II（尊尚版） offers the most remarkable expected return (base case) ratio with pre-paid premiums, reaching an astonishing 50.3 times. This means that an investment of USD 1 million, after 60 years of accumulation, would grow to USD 50.31 million, with an expected Internal Rate of Return (IRR) of 6.7%. Even under a pessimistic scenario, the return still reaches 16.9 times, accumulating to USD 16.86 million over 60 years.

It is worth noting that under the worst-case scenario, Fubon Life may not achieve even the returns projected in the pessimistic scenario after 60 years, resulting in only the guaranteed return, i.e., USD 1 million growing to USD 1.229 million.

Among the products compared this time, the guaranteed return ratios of 忠意保險跨越創富保、友邦充裕未來•盈尚, and 忠意保險世紀創富保 are only 100%. This means that in the worst-case scenario, after the break-even period, policyholders would only recover their principal. On the other hand, 保誠特級「雋陞」儲蓄保障計劃 II offers the highest guaranteed return ratio at 151.6%, meaning that even in the worst case after 60 years, with unchanged premiums, policyholders could still "earn" USD 516,000.

Interestingly, a high expected return in the base case scenario does not necessarily translate to a high return in the pessimistic scenario. Fubon Life is an example of this. Meanwhile, 忠意保險世紀創富保, which ranks lowest in expected return ratio (base case), achieves a return ratio of 23.7 times in the pessimistic scenario, ranking second among the compared products, only behind its counterpart 忠意保險跨越創富保, which reaches 29.7 times.

Note 1: Analysing Expected Returns through Dividend Fulfillment Ratios

Since the expected returns of savings insurance are difficult to predict, what methods can help in selecting a product? In fact, as early as 2015, the Insurance Authority has required insurers to disclose the Fulfillment Ratios for dividend-paying savings insurance. The formula is as follows:

Fulfillment Ratio = (Actual Non-Guaranteed Dividends Paid / Non-Guaranteed Dividends Stated in the Sales Illustration) X 100%

The closer the ratio is to 100%, the closer the non-guaranteed portion of the return is to what is stated in the policy sales documents, and vice versa. For example, if a policyholder invests USD 1 million and the expected return ratio (base case) stated in the policy is 20 times, achieving a final return of USD 20 million would result in a fulfillment ratio of 100%. If, however, only the principal of USD 1 million is recovered (assuming a guaranteed return ratio of 100%), the fulfillment ratio would be 0%.

Although past performance is not indicative of future results, it still provides some reference value. For more details, you can refer to 10Life's past analysis articles on Dividend Fulfillment Ratios.

Note 2: Financial Strength of Insurers Cannot Be Overlooked

Another key point that policyholders often overlook is the financial strength of the insurer. Since long-term savings insurance often spans decades, even if the product delivers the promised returns, if the insurer unfortunately goes bankrupt, policyholders may suffer significant losses, and years of premium payments could go to waste. This is especially relevant given recent reports of local insurers facing financial difficulties, including liquidation orders due to insolvency. Choosing the wrong insurer could lead to substantial losses.

10Life has previously analysed some reference indicators for financial strength and highlighted related issues.

Note 3: Early Surrender Results in Significant Losses

Before purchasing long-term savings insurance, it is crucial to carefully plan future financial budgets and set aside emergency funds to mitigate personal liquidity risks. This helps avoid the need for early surrender due to unforeseen events, as the earlier the surrender, the lower the cash value relative to the premiums paid, meaning the earlier the surrender, the greater the loss.

Note 4: Option to Change Insured Person

It is worth noting that not all long-term savings insurance products offer the option to change the insured person, or they may impose restrictions on the number of changes or the age of the current insured. This means that wealth inheritance may cease at the second or third generation. Miscalculations in planning could disrupt family inheritance plans. 10Life will further explore the option to change the insured person in the future.

Lastly, long-term savings insurance is one of the options for passing wealth to the next generation. Before purchasing, it is advisable to compare multiple products to select the one that best suits your needs. If you have any questions about long-term savings insurance, feel free to consult a 10Life insurance advisor.

Note: This article was last updated on 15 September 2022.

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.

Last updated: 9 Apr 2026

10Life Editorial Team

Our team of professional content researchers focussing on insurance

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10Life Editorial Team

Our team of professional content researchers focussing on insurance

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Table of Content

[Compare Long-Term Savings Insurance] 60-Year "Grandparent-Grandchild Plan" – Can $1,000,000 Really Turn into 50 Million?

Short-term savings insurance focuses on guaranteed returns

The expected return in baseline and pessimistic scenarios can differ by more than double.

Table 1: Comparison of Long-Term Savings Insurance Based on Expected Return Ratio (Basic)
(Assuming the insured is a 35-year-old non-smoking male, with a contribution period of 1 to 3 years and a 60-year term)

Note 1: Analysing Expected Returns through Dividend Fulfillment Ratios

Note 2: Financial Strength of Insurers Cannot Be Overlooked

Note 3: Early Surrender Results in Significant Losses

Note 4: Option to Change Insured Person

Table of Content

Trending

Table of Content

[Compare Long-Term Savings Insurance] 60-Year "Grandparent-Grandchild Plan" – Can $1,000,000 Really Turn into 50 Million?

Short-term savings insurance focuses on guaranteed returns

The expected return in baseline and pessimistic scenarios can differ by more than double.

Table 1: Comparison of Long-Term Savings Insurance Based on Expected Return Ratio (Basic)(Assuming the insured is a 35-year-old non-smoking male, with a contribution period of 1 to 3 years and a 60-year term)

Note 1: Analysing Expected Returns through Dividend Fulfillment Ratios

Note 2: Financial Strength of Insurers Cannot Be Overlooked

Note 3: Early Surrender Results in Significant Losses

Note 4: Option to Change Insured Person

Table of Content

Trending

Table 1: Comparison of Long-Term Savings Insurance Based on Expected Return Ratio (Basic)
(Assuming the insured is a 35-year-old non-smoking male, with a contribution period of 1 to 3 years and a 60-year term)