Premium Structures of Investment-linked Policies 投資相連保單保費結構

Single Premium Plan 整付保費計劃

A single premium plan is funded by one premium payment and is intended principally for someone who already has a capital sum available. The identifying feature is the lump-sum payment rather than a series of scheduled premiums.

Alongside insurance protection, such a person seeks a long-term investment opportunity, the prospect of a profit and freedom to choose an investment strategy. Profit is an objective; the description 'single premium' does not itself promise a profitable outcome.

Historical figures in the IA's Paper V Study Notes, 2023 edition, show that single and regular premiums represented 74.4% and 25.6% respectively of new investment-linked business office premiums by value in 2008. The corresponding figures for 2021 were 71.4% and 28.6%. These are proportions of premium value, not policy numbers or current market shares.

Regular Premium Plan 定期繳費計劃

A regular premium plan receives premiums on an agreed recurring basis, allowing someone to build savings progressively. Its main distinction from a single premium plan is that money is contributed over time rather than in one payment.

Alongside insurance protection, the policyholder can follow a flexible investment strategy and use relatively small amounts to participate through units in various investment funds. This can spread investment risk, but spreading risk does not eliminate it or guarantee capital or returns.

Keep the payment structure separate from the investment arrangements when answering questions: regular premiums do not mean investment is restricted to one fund, and a single premium does not mean insurance protection is absent. Both structures allow the policyholder to pursue an investment strategy.

Where a calculation question specifies premium deductions and unit prices, first calculate the amount available for investment under those assumptions, then divide it by the relevant unit price. For several payments, calculate the units allocated for each payment separately and add them together.