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Cost Index & Linton Yield

Compare permanent life policies on true cost rather than headline premium.

Inputs

Policy projection

Annual premium

HK$

Period N (years)

Interest rate (%)

Projected cash value at year N

HK$

Accumulated dividends at year N

HK$

Policy face amount

HK$

Linton yield (single year)

Beginning cash value

HK$

Ending cash value

HK$

Premium this year

HK$

Dividend this year

HK$

Term-cost (protection component)

HK$

How this is calculated

Traditional Net Cost = Total premiums − (Cash value + Dividends).

Surrender Cost Index: accumulate premiums at interest to year N, subtract cash value and dividends, divide by the future value of a $1 annual annuity-due, then per $1,000 of face amount.

Linton Yield = (Ending CV + Term Cost) / (Beginning CV + Premium − Dividends) − 1.

Estimate

Traditional net cost (N yrs)

HK$80,000

Surrender Cost Index

10.78

per HK$1,000 / year

Linton Yield

1.79%

For information only. Not advice, recommendation, or solicitation. Data has not been independently verified — always verify directly with the authorised intermediary or fund provider before making decisions.