10Life Term Life Scoring Methodology

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⁾

Note:

Sum assured is the guaranteed death benefit payable in the event of death during the coverage term.
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

Disclaimer

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Term Life Insurance Scoring Methodology