Table of Content

Term Life Insurance Scoring Methodology

Term Life Insurance Scoring Methodology
Evaluation by professional actuaries to help you identify term life insurance with good value
Iris Lun
10Life Co-founder and Chief Actuary
1. Overview

Death Benefit Factor

Calculated by dividing the sum assured by the average annual premium over the target coverage period.

Terms Factor

Scores will be deducted for unfavourable policy terms and exclusions.

2. Score Weighting

3. Assumptions

  • Non-smoking male or female, age 25, 35 or 45
  • Renewable yearly, every 5, 10 or 20 years
  • Standard or online underwriting
  • Target coverage period of 10 or 20 years with HKD 1,000,000 sum assured

4. Death Benefit Score Details

As term life insurance is a pure protection product, death benefit is the key component. There are 2 types of Death Benefit Score, which are based on the 10-year and 20-year benefit multiplier respectively. 

10-year Benefit Multiplier = 

Sum Assured(1)

10-year Average Premium(2)

20-year Benefit Multiplier = 

Sum Assured(1)

20-year Average Premium(2)


  1. Sum assured is the guaranteed death benefit payable in the event of death during the coverage term.
  2. Assuming payment frequency is annual, and the policy is renewed at current premium rates. If annual payment is not available, monthly premium multiplied by 12 is used instead.

In each gender and age group, the product with the highest multiplier is given a score of 10. The scores of the products are benchmarked against the highest multiplier.

5. Terms Score Details

The Terms Score is calculated based on (i) terms and (ii) the exclusions on specific causes of deaths, where points are deducted for the following unfavorable terms and exclusions relative to the market:

  • Policy termination upon overseas residency
  • HIV and AIDS
  • Illegal activities
  • Drug or alcohol overdose or influence
  • Armed forces participation
  • Nuclear, biological, and chemical activities
  • War and terrorism
  • Suicide (after 2 years of policy effective date)


Updated on March 11, 2022


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.

If you have any questions on 10Life Product Comparison and 10Life Insurance Ratings, please email us at

Whatsapp icon