Scoring Methodology of Whole Life Critical Illness

Introduction

Whole Life Critical Illness (“CI”) Insurance mainly covers life-threatening diseases. A fixed lump sum benefit is payable if the insured is diagnosed with a pre-defined illness. There are various types of CI products in the market, with some also covering early-stage, minor and juvenile diseases; and some also covering multiple times of specified major critical illnesses. The benefit amount differs based on the severity of the illness. 

10Life rates the products based on the critical illness coverage and the policy terms and conditions, under a strict and fair mechanism.

General Assumptions

• Issue age 25 / 35 / 45; Smoker / Non-smoker; male/ female
• US$150,000 basic sum assured with 25-year (or closest equivalent) premium payment term

1. CI Coverage Score

CI Coverage Score is a weighted score on Single CI coverage and Multiple CI coverage. A higher weight is put on Single CI since the first CI cases are most common. Multiple CI coverage is also considered as the survival and recovery rates of the first CI increase with medical advancement.

1.1 Single CI Coverage

The single CI coverage is mainly based on the payout (Sum Assured) on the following CI and items,

The Single CI Coverage is weighted based on the approximate industry claim rates for male and female. The weightings are as follows:

1.2 Multiple CI Coverage

The Multiple CI Coverage is based on the total payout of the following CI,

The Multiple CI Coverage is weighted based on the approximate industry claim rates for male and female. The weightings are as follows:

2. CI Terms Score

The CI Terms Score is calculated based on the terms and provisions of each product. In the disease definitions and policy provisions, there may be terms and conditions that can be unfavorable to the policyholder during a claim. Also in between each multiple CI claim, a waiting period is usually required. The longer the waiting period, the less favourable to the insured.

Based on consultation with medical specialists, deductions are made to the Terms Score based on the following terms:

3. Whole Life Critical Illness Insurance 5-Star Rating

10Life Whole Life CI Insurance 5-Star Rating is awarded to the top products in the market. 

To earn a 5-Star Rating, the product must achieve:

(1) a CI Coverage Score of at least 9.0 and 

(2) a CI Terms Score of at least 7.0

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.

If you have any questions on 10Life Product Comparison and 10Life Insurance Ratings, please email us at enquiries@10life.com.

Last Update Date: 31 Oct, 2022