4 High-Coverage Whole Life Insurance Plans Compared: Early Death Benefit Payouts Differ by Over 60% | 10Life

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Whole life insurance products that focus on high protection often spark heated discussions online, as netizens frequently confuse these products with savings life insurance plans that prioritise long-term returns. In reality, whole life insurance primarily focuses on protection, with savings not being the main objective. 10Life has selected whole life insurance products from AIA, Manulife, Prudential, and Sun Life to compare the differences in protection levels under the same premium basis.

The Insurance Authority's "Protection Gap 'Death Risk' Study" once mentioned (Note 1) that the local insurance market tends to favour products with savings or investment components, often overlooking the core principle of life insurance—providing adequate and sufficient protection against death risk. The primary purpose of whole life insurance is to offer protection against the risk of death for the policyholder, ensuring that, in the unfortunate event of the family breadwinner's early passing, sufficient financial support is provided to sustain the dependents' livelihood.

Early Death Compensation is Crucial for Supporting Family Life

Unlike term life insurance, this type of product offers the potential for breakeven and non-guaranteed returns. As for long-term savings insurance, the level of protection is often lower, with a greater emphasis on policy value growth through non-guaranteed returns, making it incomparable to whole life insurance directly.

We take the example of a 35-year-old non-smoking male and select four whole life insurance products in the market that focus on high protection for reference. These include AIA's Joyful Life Protection Plan (referred to as AIA Joyful), Manulife's Superior Whole Life (Manulife Superior), Prudential's Ideal Life Protection Plan II (Prudential Ideal), and Sun Life's Bright Protection Plan (Sun Life Bright), to compare the differences in protection levels among these products.

Assuming a premium payment period of 25 years for the above four products, with an annual premium of USD 2,000 (HKD 15,600), the total premiums paid after the payment period would be USD 50,000 (HKD 390,000).

Protection Amounts Can Vary Over Time, Additional Protection Effects Diminish

Using the example of a 35-year-old male, we compare the average guaranteed death benefit every 10 policy years to reflect the protection levels of different products and demonstrate the effect after the additional protection (Booster) diminishes.

Figure 1: Comparison of Death Benefits for 4 Whole Life Insurance Products

Note:

1. Assumes the policyholder is a 35-year-old non-smoking male with a payment period of 25 years, paying USD 2,000 annually.

Comparing the first 10 years, Sun Life Bright offers the highest average annual guaranteed death benefit at USD 188,000 among the four products. Prudential Ideal follows closely at USD 185,000, with Manulife Superior (USD 115,000) and AIA Joyful (USD 114,000) behind. The difference between the highest and lowest is 65%.

Looking at the average guaranteed death benefit for years 11 to 20, the figures remain identical to the first 10 years with no changes.

However, from years 21 to 30, when the policyholder enters the retirement stage (aged 56 to 65), the additional protection effect of certain insurance products gradually diminishes. Prudential Ideal drops to USD 134,000, a 28% decrease compared to the previous decade.

At Age 70, Three Insurance Products Can Break Even

Assuming the policyholder has been retired for some time and is now 70 years old, the guaranteed death benefit of certain insurance products decreases due to the diminishing effect of additional protection (Booster). By this time, the policyholder's children may have already started their own families, and the policyholder may have substantial retirement savings with no financial burdens. As mentioned in the Insurance Authority's "Regulatory Newsletter", "At retirement, if one has savings, investments, or a pension and no longer needs to support dependents, this means the need for life protection begins to diminish to zero." (See Note 2)

At this point, if the policyholder wishes to deal with this whole life insurance policy, there are three options:

When the need for life protection diminishes to near zero, surrendering the policy might be an option for this 70-year-old individual. According to 10Life's comparison, three out of the four products guarantee a 100% return of premiums (Return of Premium) at age 70, including AIA Joyful, Manulife Superior, and Sun Life Bright. However, Prudential Ideal still does not break even.

This type of whole life insurance, which focuses on high protection, also offers non-guaranteed returns, though the amounts are difficult to predict.

If there is no urgent need for funds at this stage, the policyholder can consider leaving this sum as an inheritance for the next generation. Taking the example of death at age 70, the guaranteed death benefits for AIA Joyful, Manulife Superior, and Sun Life Bright are similar at USD 114,000, USD 115,000, and USD 111,000 respectively, while Prudential Ideal stands at USD 93,000, all of which are significantly higher than the cash value.

These products also offer non-guaranteed death benefits, but the amounts are difficult to predict, with the focus remaining on the guaranteed death benefit protection.

The policy reverse mortgage scheme offered by the Hong Kong Mortgage Corporation provides another cash flow option for whole life insurance policyholders. This scheme allows individuals aged 60 or above to apply to convert their guaranteed death benefit into an annuity with options of 10 years, 15 years, 20 years, or lifetime payments. However, it should be noted that this scheme involves interest and premium costs.

According to the Hong Kong Mortgage Corporation, assuming the borrower is a 65-year-old male with a guaranteed death benefit of HKD 2 million, under a fixed-rate mortgage plan (4% annual interest for the first 25 years, followed by the prime rate minus 2.5%), the borrower can receive HKD 3,157 monthly for life. For details, please consult a professional insurance advisor.

10Life recommends that when purchasing whole life insurance, individuals must compare the death benefit amounts in the early (first 10 years) or middle (10 to 20 years) stages, with particular attention to the guaranteed death benefit portion.

Additionally, when the policyholder reaches an older age, they can handle the policy based on their financial situation, including surrendering the policy, leaving it as an inheritance for the next generation, or opting for a policy reverse mortgage. However, these are significant decisions, and 10Life advises seeking the opinion of a professional insurance advisor before taking action.

Notes:

Results of the Insurance Authority's first "Protection Gap 'Death Risk' Study".
Insurance Authority's "Regulatory Newsletter".
The above information is provided by 10Life, with data as of 8 October 2021. The content is for reference only and does not constitute sales advice.

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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Comparison of 4 High-Coverage Whole Life Insurance Plans: Early Death Compensation Varies by Over 60%

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