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1. Overview

Guaranteed Return

Based on the guaranteed cash value that the insurance company is obliged to pay.

Projected Return (Pessimistic)

Based on the projected cash value under the pessimistic scenario

Projected Return (Base)

Based on the projected cash value under the base scenario

2. Score Weighting

10Life designed three scores to represent three risk preferences for whole life savings insurance policyholders. They are “Conservative Savings Score”, “Growth Savings Score” and “Aggressive Savings Score”.

3. Assumptions

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

Updated on Sep 29, 2021.

4. Long-term Savings Score Details

Guaranteed return is one of the key differentiators between buying a mutual fund and a savings insurance product. In assessing the attractiveness of the products, 10Life compares the guaranteed return, as well as the projected return (pessimistic) and projected return (base), to reflect different risk levels at the end of the specified policy period, benchmarked against the market. The detailed methodology is as follows:

4.1. The Levels of Risk Reflected

Three levels of risk are used for assessing the savings return after the policy is in force for a certain period of time.

	Is this return guaranteed?	Includes all guaranteed benefits?	Includes non-guaranteed benefits?	Cash Values Measured
Guaranteed Return Score	Y	Y	N	The minimum cash values obligated by the insurer at the end of the specified policy period.
Projected Return (Pessimistic) Score	N	Y	Y	Cash values assumed under the “Pessimistic Scenario” by the insurer in the policy proposal.
Projected Return (Base) Score	N	Y	Y	Cash values assumed under the current “Base Case Scenario” by the insurer in the policy proposal.

4.2. Compare the Cash Values

The three return scores measure the 20-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 20th policy year.

4.3. Benchmark Return against the Market

For each of the three return scores, the 99th percentile of cash values in the market is used as benchmark. To assess the attractiveness of the returns, the return score is calculated as the 20-year cash value vs the respective benchmark. The benchmarks may be updated from time to time to reflect changes in the market.

5. Long Term Savings Insurance 5-Star Rating

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

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.

	Education	Retirement	Legacy*
Target Savings Period	20 Years	30 Years	60 Years
Premium Term	5-12 Years	10-18 Years	1-20 Years
Savings Score based on selected Risk Preference	Growth Savings Score ≥9.5	Growth Savings Score ≥9.5	Aggressive Savings Score ≥9.0

*Product must offer the option to change the policyholder and/or the insured.

Since the implementation of GL16 in early 2017, insurers are required to disclose fulfillment ratios of non-guaranteed dividends/bonuses. However at this stage, the published data available in the market mainly cover the fulfillment ratios of the first few policy years, making it insufficient to determine the ability of insurers fulfilling the long term nature of these non-guaranteed returns. Moreover, products and market assumptions are constantly changing, making it difficult to predict future returns based on past returns. Therefore, 10Life does not take published fulfillment ratios into the calculation.

Updated on Oct 31, 2022

Disclaimer

10Life Product Comparison and 10Life Insurance Ratings are developed by 10Life Financial Limited, an authorised insurance broker company licensed with the Insurance Authority under License Number FB1526. 10Life Product Comparison and 10Life Insurance Ratings are developed for generic customer segments using mathematical calculations based on product information, facts and data, and are not influenced by any partnerships with or fees received from insurance companies.

Any information on 10Life Platform ("10Life Information"), including but not limited to Product Comparison, Product Ratings, Blog Articles are intended for general education purpose and reference only. None of the 10Life Information is intended, nor should they be considered or relied upon, as regulated advice, insurance, financial, investment or professional advice, recommendation, approval, endorsement, invitation or solicitation in respect of any insurance, financial or investment products. 10Life Information does not take into account your individual needs. Reading 10Life Information should not be considered as conducting a suitability assessment, and is not sufficient to form the basis of any decisions to purchase any insurance products. You should rely on information authorised by insurance companies, carry out your own research and/or seek independent advice from licensed intermediaries before purchasing any insurance products or making any insurance decisions. While reasonable effort is used when collecting, validating and updating 10Life Information from various channels, none of 10Life Group and its subsidiaries, affiliates, agents, directors, officers and employees will be responsible for any liability, claim or loss arising from or associated with you using 10Life Information. No warranty, representation or guarantee is given by 10Life Group and its subsidiaries on the accuracy, completeness and timeliness of the information.

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Long Term Savings Insurance Scoring Methodology