Esteem Legacy II: A High-Cash-Value Whole Life Plan from Etiqa

Esteem Legacy II is a single-premium participating whole life insurance plan offered by Etiqa Insurance Pte. Ltd. Designed for lifelong coverage, it provides death and terminal illness benefits while accumulating cash value over time. The product allows policyholders to participate in the performance of Etiqa’s Participating fund through non-guaranteed bonuses. A key feature is the "Sum Assured Multiplier," which can enhance coverage, though the plan does not offer cash coupons, SRS/CPFIS premium payments, or a guaranteed insurable option on life events. The policy is protected under the Policy Owners’ Protection Scheme administered by the Singapore Deposit Insurance Corporation (SDIC).

How it compares

When evaluating Esteem Legacy II against similar single-premium whole life plans for a 35-year-old male non-smoker with a $100,000 sum assured, distinct trade-offs emerge regarding cost, returns, and fees.

Premium Cost: Esteem Legacy II requires a premium of $47,929. This is significantly lower than Infinite Legacy (II) by China Taiping ($61,387) and PremierLife Legacy 4 by Great Eastern ($50,249). However, it is substantially higher than PRULife Vantage Achiever Prime II by Prudential, which costs only $11,884 but requires a limited premium term of 2 to 5 years rather than a single lump sum.

Surrender Value (Year 20): After 20 years, the projected surrender value per $100,000 sum assured for Esteem Legacy II is $46,970. This outperforms Great Eastern’s PremierLife Legacy 4 ($40,308) but falls short of China Taiping’s Infinite Legacy (II), which offers a higher surrender value of $50,337. Prudential’s PRULife Vantage Achiever Prime II shows the lowest surrender value at $18,443, reflecting its different premium structure.

Returns and Expenses: The 5-year net investment return for Esteem Legacy II is -0.40%, with a 10-year return of 1.92%. These figures lag behind Great Eastern’s PremierLife Legacy 4, which reports 2.39% (5y) and 3.68% (10y). In contrast, China Taiping’s Infinite Legacy shows a slightly better 5-year return of -0.03%, though its 10-year data is not provided. Prudential offers a positive 0.39% at 5 years and 2.31% at 10 years.

Regarding costs, Esteem Legacy II has a Total Expense Ratio (TER) of 2.25% at 5 years. This is higher than Great Eastern’s lower TER of 1.54% but considerably more efficient than China Taiping’s high TER of 5.12%. Prudential’s TER is comparable at 2.27%.

Pros

• Competitive Entry Cost: The single premium ($47,929 per $100k SA) is lower than peers from Great Eastern and China Taiping.
• Strong Surrender Value: Offers a higher year-20 surrender value ($46,970) compared to Great Eastern’s PremierLife Legacy 4.
• Flexible Insured Party: Allows for one change of life insured (for non-corporate owners) after the second policy year, subject to approval and underwriting.
• Regulatory Protection: Covered by the Policy Owners’ Protection Scheme.

Cons

• Negative Short-Term Returns: The 5-year net investment return is negative (-0.40%), indicating that early surrender may result in a loss relative to fund performance benchmarks.
• High Long-Term Costs: The 10-year TER of 3.64% (from product facts) and 2.25% at 5 years are higher than Great Eastern’s equivalent fees.
• Payment Limitations: Does not allow premium payments via SRS or CPFIS, limiting funding flexibility for some consumers.
• Non-Guaranteed Bonuses: A significant portion of potential returns relies on non-guaranteed reversionary and performance bonuses, which vary based on fund performance.

Who it may suit

Esteem Legacy II may suit individuals seeking a single-premium whole life plan who prioritize a lower upfront cost compared to high-end peers like China Taiping or Great Eastern, while still expecting a respectable surrender value in the medium term (20 years). It is appropriate for those comfortable with non-guaranteed bonuses and who do not require SRS or CPFIS funding options. Consumers looking for the highest possible long-term net returns might find Great Eastern’s PremierLife Legacy 4 more attractive, despite its higher premium. Conversely, those sensitive to high expense ratios may prefer Prudential’s PRULife Vantage Achiever Prime II, provided they can accommodate a multi-year premium payment term.

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.