Infinite Legacy (II) by China Taiping: A High-Cost Legacy Solution with Secondary Life Option

Infinite Legacy (II) is a participating whole life plan from China Taiping Insurance (Singapore) Pte. Ltd., designed primarily for legacy planning. It offers lifelong coverage for the primary life insured, with an optional secondary life insured feature that allows the policy to continue upon the death of the primary insured. The plan provides a guaranteed death benefit and terminal illness benefit, alongside non-guaranteed bonuses linked to the insurer’s Participating Fund. While it offers robust legacy continuity features, it comes with a notably high premium structure compared to market peers.

How it compares

When evaluated on a like-for-like basis for a 35-year-old male non-smoker, Infinite Legacy (II) stands out for its cost and return profile. It requires a single premium of $61,387 per $100,000 sum assured. This is significantly higher than competitors:

• Esteem Legacy II (Etiqa) costs $47,929 per $100k SA.
• PremierLife Legacy 4 (Great Eastern) costs $50,249 per $100k SA.
• PRULife Vantage Achiever Prime II (Prudential) is the most affordable at $11,884 per $100k SA (though it uses a 2-to-5-year premium term rather than single).

In terms of cash value retention after 20 years, Infinite Legacy (II) offers a surrender value of $50,337 per $100,000 sum assured. This is higher than Esteem Legacy II ($46,970) and PremierLife Legacy 4 ($40,308), but vastly superior to PRULife Vantage Achiever Prime II ($18,443).

However, the financial efficiency metrics reveal trade-offs. The product has a Total Expense Ratio (TER) of 5.12% over 5 years, which is the highest among the compared peers (Etiqa: 2.25%, Great Eastern: 1.54%, Prudential: 2.27%). Furthermore, its net return at 5 years is -0.03%, indicating that in the early decades, the guaranteed and projected values may not outpace the premium cost significantly compared to PremierLife Legacy 4 (2.39% at 5 years). The illustration rates used are 3.00% and 4.25% p.a., with a historical net investment return of -0.03% over 5 years.

Pros

• Secondary Life Insured Option: Allows the policy to continue for estate planning purposes by appointing a secondary life insured, ensuring legacy transfer across generations.
• High Surrender Value in Early Years: At year 20, the surrender value per $100k SA ($50,337) is higher than Esteem Legacy II and PremierLife Legacy 4.
• Terminal Illness Benefit: Provides a lump-sum advance of up to SGD 3,000,000 for terminal illness diagnosis.
• Guaranteed Death Benefit: Offers a defined minimum death cover that reduces gradually after age 86 but remains substantial.

Cons

• High Premium Cost: The single premium of $61,387 per $100k SA is the most expensive among the compared products.
• High Expense Ratio: The 5-year TER of 5.12% is significantly higher than peers like Great Eastern (1.54%) and Etiqa (2.25%), impacting net returns.
• Negative Early Net Return: The 5-year net return of -0.03% suggests limited liquidity growth in the first five years compared to PremierLife Legacy 4 (2.39%).
• No Flexible Payment Options: Unlike PRULife Vantage Achiever Prime II, it does not offer shorter premium terms or lower annual premiums for cash flow management.

Who it may suit

Infinite Legacy (II) may suit individuals seeking a high-value legacy plan with the specific need to pass coverage to a secondary life insured. It is appropriate for those who can afford the high upfront single premium and prioritize guaranteed death benefits and terminal illness coverage over short-term investment returns. Consumers sensitive to expense ratios or looking for lower entry costs might find Esteem Legacy II or PremierLife Legacy 4 more cost-effective alternatives.

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.