Author
Bowtie Team
Updated on
2025-06-12
Disclaimer: This article is translated with the assistance of AI.
Wondering if whole life insurance with savings is better for combining protection and savings, or if you should keep them separate? Bowtie’s calculator helps you figure it out quickly!
Bowtie Exclusive Reveal: Savings Insurance Return Calculation Tool
Savings insurance plans come with a lot of numbers, but the most important return rate is often hard to find. The Bowtie team has created a simple return calculation Excel tool for you, so with just a few easy steps, you can accurately calculate your savings insurance returns!
Only 2 Steps to Get Started!
- Prepare your savings insurance policy document.
- Prepare Savings Insurance Return Calculation Table (please download to your computer).
- * This Excel tool is only for whole life insurance or long-term insurance products like savings life insurance with non-guaranteed returns. This calculator focuses on comparing policy values, but some savings life insurance plans may include additional coverage, such as critical illness protection. Customers should understand the product features and coverage before purchasing and not solely consider the policy value.
Savings Insurance Return Calculation Table Excel Guide
Simple Version vs. Advanced Version
The calculation table comes in two versions: simple and advanced. The simple version meets the needs of most people, while the advanced version is for readers with some investment knowledge. The main difference is that the advanced version provides more detailed results, with more flexible options (like dividend realization rates and investment returns), but it requires more input numbers. If you just need a straightforward result, the simple version is sufficient.
Why Are There Numbers Already Before I Fill in the Excel?
To make it easier for readers to understand how to fill out the Excel sheet, we’ve pre-entered data from a real savings insurance policy as an example. You just need to update the light pink cells with the details and numbers from your own policy document.
Steps 1 to 3: Enter Data Based on Your Savings Insurance Policy
Please enter the following data in Steps 1 to 3 according to your policy document:
- Personal details (Step 1)
- Policy details (Step 2)
- Surrender value (Step 3)
Here are two key points to keep in mind:
- In Step 1, the “age” mentioned refers to the age on your policy document, not your current age. For the “policy replacement or savings comparison” strategy at the end, this calculator only accepts ages between 18 and 65.
- In Step 3, the “non-guaranteed amount” means the total of different dividends for that policy year. Insurance companies might use various names for non-guaranteed amounts (like annual dividends, reversionary dividends, terminal dividends, or special dividends), but you just need to add up the relevant numbers when inputting.
Step 4: Enter the Dividend Realization Rate
Since non-guaranteed returns (dividends) might not end up as stated in the policy, you should make a conservative estimate for them.
For the “realization rate” calculation, here’s a quick example: If you use a 70% realization rate, it means that for a $100 non-guaranteed amount shown in the policy, you might only get $70 in reality.
Once you input the dividend realization rate, you’ll see the returns for different policy years, including the guaranteed return rate and the total return (guaranteed plus non-guaranteed).
Recently, there was Research showing that over 60% of products have a realization rate below 100%, with the lowest dipping as low as 8%.
Why Choosing Insurance Without Saving Component May Be Smarter
Whole life insurance combines savings and life coverage in one package, which sounds like a win-win—until it falls short on protection and returns. It’s a classic case of trying to do it all and ending up with neither fully covered.
But here’s a smarter twist: opt for the ‘insure and save’ strategy by going with term life insurance—like Bowtie Term Life—and investing the savings from lower premiums. This way, you get solid coverage without skimping on potential returns. Stick around for real-life case studies later in the article.
Step 5: Enter the Expected Return Rate for Your Own Investments
In Step 5, you can input the expected return rate for your own investments to compare which strategy delivers higher returns:
- Purchasing savings life insurance
- Buying Bowtie Term Life and investing the saved premiums (the difference in contributions between the two options).
- Note*
- 1 Generally, savings life insurance may have a surrender value (if applicable), whereas term life insurance does not.
- 2 Different investments come with varying risks and aren’t suitable for everyone. The investment returns mentioned are for reference only; past performance doesn’t guarantee future results, and actual returns can vary based on multiple factors.
- 3 The calculations above don’t account for potential future premium adjustments. Real results might differ from these figures.
Step 6: What Is The Ideal Expected Return? (Advanced Version Only)
Beyond the calculations in Step 5, our advanced version offers deeper insights, helping you figure out the return rate needed on your investments to outperform savings insurance at specific policy years or ages.
- * Step 6 calculations are based on the “non-guaranteed amounts” realization rate from Part 4. Keep in mind, savings insurance involves non-guaranteed returns, so actual amounts could differ from these estimates, which are for reference only.
Still Puzzled After the Guide? Reach Out To Us!
Whether you have questions about the return calculations in this tool or need clarity on Bowtie products, just WhatsApp 6016 5980 to connect with Bowtie:
Office hours
- Monday to Friday: 9:30 am – 6:30 pm
- Saturdays, Sundays, and public holidays: Closed
Real Case Sharing
After meeting with the agent, Mr. Chan wanted to know if the returns on savings life insurance were attractive, so he followed the plan document and filled out Steps 1 through 3. This allowed him to see the return rates for different policy years in Step 4:
| Policy Year End | Annualized Return Rate (Guaranteed Amount) |
Annualized Return Rate (Guaranteed + Non-Guaranteed Amount) |
| 5 | -41.00% | -38.05% |
| 10 | -11.04% | -8.64% |
| 20 | -1.16% | 0.82% |
| 30 | 0.04% | 2.22% |
| Age 65 | 0.03% | 2.46% |
- *
- 1 The actual whole life insurance policyholder is a 30-year-old non-smoking male who purchased a relatively simple whole life insurance policy with 25 years of premiums and a coverage amount of US$128,000.
- 2 The figures in the table are calculated based on the premium entered in Step 2. If the policy currency is in US dollars, the numbers will be converted to Hong Kong dollars by multiplying by 7.8 for comparison.
- 3 Assumes a 100% dividend realization rate.
Mr. Chan wasn’t too thrilled with these returns, especially since at age 65, it’s only around 2.5%—and that’s based on the optimistic assumption of a 100% dividend realization rate.
He wondered if a “protect and save” strategy would work better—that is, buying term life insurance and investing the saved premiums himself. Would that come out ahead?
To find out, Mr. Chan didn’t need any complicated calculations; he could jump straight to Step 5 for the results:
| Policy Year End | Buying Whole Life Savings Insurance | Investing the Saved Premiums Yourself | Additional Returns from Self-Investment
(D – C) |
| Guaranteed Plus Non-Guaranteed Surrender Value (C)
Calculated using the expected dividend realization rate you selected in Step 4 |
Cumulative Expected Total Investment Value (D)
Calculated using the expected return rate you selected |
||
| 5 | $7,207 | $88,001 | $80,794 |
| 10 | $64,054 | $197,590 | $133,536 |
| 20 | $372,395 | $502,464 | $130,069 |
| 30 | $764,642 | $871,334 | $106,692 |
| Age 65 | $949,432 | $1,093,581 | $144,150 |
- *
- 1 Assuming your own investment return rate is 4.7%.
- 2 Different investments involve different risks and are not suitable for all investors. The above investment return data is for reference only; past performance does not represent future returns. Actual returns may vary based on various factors.
- 3 The above calculations do not consider possible future premium adjustments. Future actual results may differ from the above data.
Based on the results from Step 5, Mr. Chan found that even with a conservative estimate (an investment return rate of 4.7% for himself), the “preserve and save” strategy is superior. Not only does the protection not decrease, but at age 65, you’ll have an extra fund to use, making your finances more flexible.
For the “preserve and save” strategy to succeed, having low enough premiums for term life insurance is key! With Bowtie Term Life, premiums are affordable, and you can buy it online, which is very convenient. Why not check it out right now?
- * Investments involve risks. Past performance does not guarantee future returns. This calculation table is for illustrative purposes only and is used solely to indicate possible scenarios. It should not be regarded or understood as any investment advice. Actual situations, results, or performance may differ significantly from expectations. Investments do not guarantee profits. In the worst case, your investment could become worthless. Using this calculation table should not be seen as conducting a personal suitability assessment and is not sufficient to form the basis for any decision to purchase insurance or investment products. Before buying any investment or insurance product or making related decisions, you should carefully read the relevant product sales documents and terms and conditions to understand the detailed product information and risk factors. You should also consider your financial situation, investment experience, and goals, and consider whether the product is suitable for you and/or seek professional assistance if needed. Any content in this calculation table related to returns and comparisons is for reference and educational purposes only. Customers should refer to the detailed terms and conditions on the relevant product webpages. Please note that different companies’ products have different coverage scopes and underwriting criteria, so customers should select products based on their personal or actual needs.
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