Review: China Taiping’s i-Secure Legacy (II) Whole Life Plan

i-Secure Legacy (II) is a limited premium payment, participating whole life plan offered by China Taiping Insurance (Singapore). Designed for lifelong coverage, it provides protection against death, terminal illness, and total and permanent disability (TPD). A key differentiator of this product is its flexibility in defining the "Basic Guaranteed Benefit" (GB), allowing policyholders to choose a multiplier of 3x, 4x, or 5x their basic sum assured, with the guarantee lasting until age 76 or 86. After this period, the guaranteed portion reduces by 10% annually for five years. The plan includes a compulsory TPD rider and offers non-guaranteed bonuses linked to China Taiping’s Participating Fund performance.

How it compares

When evaluated on a like-for-like basis (Age 35, Male, Non-smoker, per $100,000 sum assured), i-Secure Legacy (II) positions itself in the mid-to-high premium segment compared to its peers.

Premium Costs At $4,687 per year, i-Secure Legacy (II) is significantly more expensive than competitors. It costs roughly $1,023 more annually than Great Eastern’s GREAT Life Multiplier ($3,664), $2,163 more than Etiqa’s Essential whole life cover ($2,524), and $2,429 more than Income’s Complete Life Secure (500%) ($2,258). This higher cost is partly due to the shorter premium payment terms allowed (11 to 15 years) compared to Income’s extended term of 26 to 30 years.

Cash Value and Returns In terms of liquidity, i-Secure Legacy (II) offers a projected surrender value of $27,700 at year 20. This is higher than Great Eastern ($19,400), Etiqa ($26,300), and Income ($15,200). However, the net returns tell a mixed story. At the illustrated 3.00% investment rate, i-Secure Legacy (II) shows a negative 5-year net return of -0.03%, which is worse than Great Eastern (2.39%), Income (1.58%), and Etiqa (which also shows -0.40% but recovers to 1.92% by year 10). The Total Expense Ratio (TER) at 5 years is 5.12%, which is notably higher than Great Eastern (1.54%), Etiqa (2.25%), and Income (0.94%).

Coverage Features Unlike Income’s Complete Life Secure, which offers a high sum assured multiplier (up to 500%), i-Secure Legacy (II) allows users to select a GB Factor of 3x, 4x, or 5x for the guaranteed portion, but this guarantee erodes after age 76/86. It does not allow SRS or CPFIS premium payments, limiting funding flexibility compared to some market alternatives.

Pros

• Higher Year-20 Cash Value: Offers a higher projected surrender value ($27,700) than Great Eastern, Etiqa, and Income at the 20-year mark.
• Flexible Guaranteed Benefit Structure: Allows selection of GB Multipliers (3x–5x) and duration (until age 76 or 86), providing customizable early-career protection levels.
• Comprehensive Coverage: Includes a compulsory TPD rider and terminal illness benefit, with clear definitions for both.
• Insurer Stability: Backed by China Taiping, which holds an A rating from A.M. Best.

Cons

• High Premiums: The annual premium ($4,687) is substantially higher than comparable peers like Income or Etiqa.
• Poor Early Returns: The 5-year net return is negative (-0.03%) at the 3.00% illustration rate, indicating high initial costs and slow cash value accumulation.
• High Expense Ratio: The 5-year TER of 5.12% is significantly higher than competitors (e.g., Income’s 0.94%), impacting overall efficiency.
• Limited Funding Options: Does not support SRS or CPFIS payments, requiring out-of-pocket cash premiums.
• Eroding Guarantee: The high guaranteed benefit factor reduces by 10% annually for five years after age 76/86, reducing the safety net in later life.

Who it may suit

i-Secure Legacy (II) may suit individuals who prioritize higher early-life guaranteed coverage multipliers and are willing to pay a premium for potentially higher mid-term cash values. It is less suitable for cost-conscious consumers seeking low TERs or high early-year returns, as competitors like Income offer much lower costs and better expense efficiency. It also requires the ability to pay higher annual premiums out-of-pocket, as it does not accept SRS or CPFIS funds.

This is general information based on CompareFIRST.sg data, not financial advice. Premiums and features can change; please verify with the insurer or a MAS-licensed financial adviser before making any decision.