China Taiping Infinite Indexed Legacy is a USD-denominated indexed universal life (IUL) insurance plan designed primarily around long-term protection and legacy planning.

What makes it different from conventional life insurance is that part of the policy value can earn interest based on index-linked crediting, while the policy continues to provide a substantial death benefit.

That combination can be attractive. But it also makes the product considerably more complicated than simply buying an investment linked to the S&P 500.

The amount eventually available from the policy depends on several moving parts:

• the death benefit selected;
• how premiums are allocated;
• the Fixed Account and Index Account crediting rates;
• prevailing participation rates;
• insurance and policy charges;
• how long the policy is held;
• withdrawals and surrender;
• and whether the policy earns enough over time to support its ongoing costs.

Most importantly, a 0% index floor does not mean your policy value cannot fall.

This guide explains how China Taiping Infinite Indexed Legacy actually works, what is guaranteed, what is not, and what you should examine before deciding whether this type of indexed universal life insurance belongs in your financial plan.

What Is China Taiping Infinite Indexed Legacy?

China Taiping Infinite Indexed Legacy is a USD-denominated, non-participating, protection-oriented indexed universal life insurance plan, launched on 7 November 2025.

The minimum Basic Sum Assured is USD 500,000, and entry is available up to Age Next Birthday (ANB) 80, although applications from ANB 71 to 80 are subject to additional facultative underwriting review. [

There are three life-insured structures:

• Single Life
• Joint Lives – First Death
• Joint Lives – Last Death

The plan is therefore not simply an indexed savings policy with some insurance attached.

Its central purpose is protection.

The index-crediting component provides the policy value with an opportunity to grow, but that growth also plays an important role in supporting the policy’s long-term sustainability because insurance and policy charges continue to be deducted.

How Infinite Indexed Legacy Works

A useful way to understand the policy is to break it into four components:

1. Premium enters the policy
2. Charges are deducted
3. Net premiums are allocated between the Fixed Account and Index Account
4. The remaining policy value supports the insurance benefit

The interaction between all four determines the eventual outcome.

For example, paying a USD 1 million premium does not mean USD 1 million immediately starts earning index-linked returns.

A 6% Premium Charge is deducted from each premium.

That means:

Gross premium: USD 1,000,000
Premium charge: USD 60,000
Net premium entering the accounts: USD 940,000

Other monthly policy charges may subsequently be deducted as well.

This is why the gross return of an index should never be mistaken for the actual return of the insurance policy.

Fixed Account vs Index Account

Policyholders can allocate their net premiums between:

• the Fixed Account, and
• the Index Account.

Allocations can range from 0% to 100% in multiples of 10%.

For example:

Allocation	Fixed Account	Index Account
Conservative allocation	100%	0%
Moderate allocation	60%	40%
Balanced allocation	50%	50%
Index-focused allocation	0%	100%

The appropriate allocation is not simply a question of which account has produced the higher historical return.

The two accounts have different guarantees, crediting mechanics and timing.

How the Fixed Account Works

At launch, the Fixed Account crediting rate is 4.50% p.a.

More importantly, the research documentation provides two contractual guarantees:

• 4.50% p.a. guaranteed for Policy Years 1 and 2
• minimum guaranteed crediting rate of 2.00% p.a. thereafter

Interest compounds daily and is credited monthly.

From Policy Year 11, a further guaranteed 0.35% p.a. Loyalty Reward is added to the prevailing Fixed Account crediting rate.

Does the 2% Fixed Account guarantee mean the policy guarantees a 2% return?

No.

This distinction is critical.

The 2% guarantee applies to the Fixed Account crediting rate.

The policy itself continues to incur charges.

Depending on the policy and the insured person’s profile, these can include:

• Policy Expense Charges;
• Cost of Insurance;
• and other applicable deductions.

The net movement in policy value can therefore be lower than the headline Fixed Account crediting rate.

How the Index Account Works

The Index Account currently provides access to two index-linked sub-accounts:

1. S&P 500 Daily Risk Control 10% Index ER USD
2. UBS-CSOP Global Asset Momentum Allocation Core Index ER USD, or GAMA.

These are not direct investments into the indices.

Instead, China Taiping uses the movement of the relevant index as part of a formula to determine the interest credited to an index segment.

That distinction matters.

If an index rises by 10%, it does not automatically mean the policy earns 10%.

S&P 500 Index Sub-Account

The S&P 500 Daily Risk Control 10% Index ER USD sub-account uses a one-year segment.

Its current mechanics include:

• 0% segment floor
• no cap
• current participation rate: 100%
• guaranteed minimum participation rate: 50%
• interest credited at segment maturity after one year.

From Policy Year 11, a guaranteed 0.35% p.a. Loyalty Reward is added to the segment crediting rate.

The important word here is current.

The 100% participation rate is not the same as the guaranteed minimum participation rate.

The contract guarantees a minimum of 50%.

When assessing a long-term IUL, therefore, you should not assume today’s participation rate remains unchanged for decades.

What Is a Participation Rate?

The participation rate determines how much of the calculated index performance is used when determining the policy’s credited interest.

For illustration, suppose an index produces a 10% return over its segment.

At a 100% participation rate:

10% × 100% = 10%

At a 50% participation rate:

10% × 50% = 5%

This simplified example demonstrates why the underlying index return and policy crediting rate are two different numbers.

A consumer comparing IUL illustrations should therefore examine at least three things separately:

1. the underlying index;
2. the participation rate;
3. the actual policy value after charges.

UBS-CSOP GAMA Index Sub-Account

The UBS-CSOP GAMA Core Index uses a two-year segment rather than a one-year segment.

Its current parameters are:

• 0% segment floor
• no cap
• current participation rate: 260%
• guaranteed minimum participation rate: 100%
• crediting every two years at segment maturity.

From Policy Year 11, a guaranteed 0.70% per biennium Loyalty Reward is added at segment maturity.

A 260% participation rate understandably attracts attention.

But there is another part of the formula that needs to be understood before looking at the headline number.

How the GAMA Performance Fee Works

The GAMA sub-account applies a 10% performance fee on the portion of the two-year index return exceeding 3.90%.

The fee is deducted before the participation rate is applied.

The formula provided in the research material is:

Performance Fee Rate = 10% × Max[(2-year return − 3.90%), 0]

Example 1: GAMA returns 3.5% over two years

The return is below 3.90%.

No performance fee applies.

At the current 260% participation rate:

3.50% × 260% = 9.10% credited rate

Example 2: GAMA returns 9%

The amount above the hurdle is:

9.00% − 3.90% = 5.10%

Performance fee:

10% × 5.10% = 0.51%

Net index return:

9.00% − 0.51% = 8.49%

Apply the current 260% participation rate:

8.49% × 260% = 22.07% credited rate

Without the performance-fee adjustment, 9% multiplied by 260% would have produced 23.40%.

Example 3: GAMA returns 15%

Performance fee:

10% × (15.00% − 3.90%) = 1.11%

Net index return:

15.00% − 1.11% = 13.89%

Apply 260% participation:

13.89% × 260% = 36.11%

Without the fee, the figure would have been 39.00%.

The takeaway is not that the GAMA structure is necessarily good or bad.

It is that 260% participation should never be viewed in isolation.

You need to understand the entire crediting formula.

What Does “No Cap” Mean?

Both index sub-accounts are described as having no cap.

That means there is no stated maximum crediting ceiling such as 8%, 10% or 12%.

But “no cap” does not mean the policy simply receives all of the index’s upside.

The eventual credited rate still depends on:

• the index return;
• the prevailing participation rate;
• any applicable index-level adjustments such as the GAMA performance fee;
• and the policy’s account mechanics.

After that interest is credited, policy charges still matter when determining your actual policy value.

So:

No cap is a feature of the crediting formula, not a guarantee of unlimited policy returns.

The 0% Index Floor: What It Really Protects

This is probably the single most important point in the entire article.

Both index sub-accounts have a 0% segment floor.

If the relevant calculated index return is negative, the segment will not receive a negative index interest credit.

That is useful.

But it does not mean the policy value cannot fall.

Why?

Because insurance and policy charges continue to be deducted.

For example:

Index crediting for the year: 0%
Policy charges deducted: ongoing
Result: Policy Value can still decline

The 0% floor therefore protects against negative index crediting.

It does not provide a 0% floor on your overall policy return or cash value.

This is a distinction consumers should understand before buying any IUL—not just Infinite Indexed Legacy.

How Automatic Premium Spread Works

China Taiping also offers an optional Automatic Premium Spread (APS) mechanism for money allocated to the Index Account.

Rather than entering the index at a single point in time, the allocated net premium can be divided into 12 equal portions.

Each month, one-twelfth is progressively transferred into a new index segment.

This can reduce the impact of committing the entire allocation to one index start date.

Importantly, APS applies only to the Index Account.

It does not apply to money allocated to the Fixed Account.

What Happens While the Money Is Waiting to Enter the Index?

Money awaiting entry into an index segment does not simply sit uncredited.

It moves through:

1. a Holding Segment;
2. a Lock-in Segment; and
3. eventually an active Index Segment.

While money remains in the Holding and Lock-in Segments, it earns the same applicable interest rate as the Fixed Account.

Three business days before the monthly Segment Start Date, funds scheduled for index entry move into the Lock-in Segment.

New index segments begin on the 16th of each calendar month.

They mature on the 15th after:

• one year for the S&P 500 sub-account;
• two years for the GAMA sub-account.

Where Does Your Actual Policy Return Come From?

A useful way to think about Infinite Indexed Legacy is:

Premiums paid
minus premium charges
minus ongoing policy charges
plus Fixed Account interest
plus Index Account interest
plus applicable Loyalty Rewards
minus withdrawals and other deductions
= evolving Policy Value

The investment index is therefore only one part of the policy’s economics.

This is why a chart showing the historical performance of the S&P 500 or GAMA is not enough to tell you what your policy would have returned.

How the Death Benefit Works

The core death benefit is the higher of:

1. 100% of the Basic Sum Assured, or
2. the Policy Value as at the date of death.

Any outstanding indebtedness, including unpaid monthly charges, is deducted before payment.

For example, if the Basic Sum Assured were USD 5 million and the Policy Value at death were USD 3 million, the higher amount would be USD 5 million before applicable indebtedness.

If the Policy Value had instead grown above the Basic Sum Assured, the Policy Value would become relevant to the death-benefit calculation.

This mechanism is one reason a protection-oriented IUL behaves differently from simply placing money into an investment portfolio.

Single Life vs Joint Lives

The policy can also be structured around two lives.

Joint Lives – First Death

The policy pays the death benefit and terminates upon the first death of the two lives insured.

Joint Lives – Last Death

The death benefit is paid upon the death of the surviving insured life.

These structures serve different planning objectives.

The choice should therefore be based on when the intended beneficiaries actually need the liquidity—not simply on which version produces the most attractive illustration.

There are underwriting implications too.

For Joint First Death, the Cost of Insurance is based on the older life’s attained age.

For Joint Last Death, it is based on the younger life’s attained age.

Terminal Illness Benefit

The plan includes a Terminal Illness benefit that accelerates the death benefit.

The cumulative lifetime limit is USD 5 million across all applicable CTPIS policies.

Once the Terminal Illness benefit is paid, the policy terminates.

The benefit excludes Terminal Illness caused by or occurring in the presence of an HIV-infected condition.

As with the death benefit, consumers should read the contractual definition and exclusions rather than relying solely on the benefit name.

What Are the Main Policy Charges?

Charges are one of the most important parts of any protection-oriented universal life policy because they determine how much investment crediting is ultimately retained in the policy.

According to the research material, the applicable charges are guaranteed after policy issuance.

1. Premium Charge

A 6% charge is deducted from each premium.

That means 94% becomes Net Premium before other policy mechanics apply.

2. Policy Expense Charge

A Policy Expense Charge is deducted monthly during the first 15 policy years.

The rate depends on factors including:

• entry age;
• gender;
• smoking status;
• underwriting class;
• residency; and
• Basic Sum Assured. [22, 30]

3. Cost of Insurance

The Cost of Insurance, or COI, is deducted monthly and can continue up to Age 121.

It is based on the policy’s Sum-at-Risk.

Broadly:

Sum-at-Risk = Basic Sum Assured − Policy Value

As the policy value grows, the amount of pure insurance risk borne by the insurer may reduce.

If Policy Value exceeds the Basic Sum Assured, the Sum-at-Risk becomes zero and no COI is charged.

COI rates vary according to factors including attained age, gender, smoking status, underwriting class, residency and applicable underwriting loadings.

This charge is particularly important when stress-testing an IUL because insurance costs can become more significant as the insured person ages.

4. Surrender Charge

Surrender charges apply during the first 10 policy years.

The calculation is based partly on the Initial Basic Sum Assured and varies according to underwriting factors.

This makes Infinite Indexed Legacy unsuitable for money that may be required at short notice.

Liquidity: Can You Withdraw Money?

Yes, partial withdrawals are permitted, subject to policy conditions.

The minimum partial withdrawal is USD 1,000, and the remaining Basic Sum Assured must remain at least USD 500,000.

Withdrawals follow a specific sequence:

1. Fixed Account;
2. Holding Segment;
3. Lock-in Segment;
4. active Index Segments on a Last-In, First-Out basis.

That means withdrawals can potentially interfere with how the remaining money is positioned across the policy accounts.

Penalty-Free Withdrawals From Year 11

Beginning from Policy Year 11, up to 5% of the Policy Value per year can be withdrawn without surrender charges and without reducing the Basic Sum Assured.

That adds a degree of long-term liquidity.

But it should not be interpreted as meaning the policy behaves like a fully liquid investment account.

For the first decade, surrender charges may apply, and withdrawals can also affect other policy protections.

One particularly important example occurs during the first five years.

How the 5-Year No-Lapse Guarantee Works

Infinite Indexed Legacy includes a No-Lapse Guarantee Privilege for the first five policy years.

Its purpose is to keep the policy in force during that period even if Policy Value becomes insufficient to pay the monthly policy charges.

But the guarantee is conditional.

Cumulative premiums paid, net of withdrawals, must remain at or above the required No-Lapse Guarantee premium schedule.

The cumulative threshold increases each year:

Policy Year	Required cumulative amount
Year 1	NLG Minimum Premium × 1
Year 2	NLG Minimum Premium × 2
Year 3	NLG Minimum Premium × 3
Year 4	NLG Minimum Premium × 4
Year 5	NLG Minimum Premium × 5

A partial withdrawal that causes premiums paid net of withdrawals to fall below the required threshold terminates the privilege. [36]

So the No-Lapse Guarantee is not simply:

“Your policy cannot lapse for five years.”

It is:

“Your policy receives conditional lapse protection for five years if the specified premium requirements continue to be satisfied.”

That is a materially different promise.

How the Minimum Surrender Value Works

The policy also includes a guaranteed Minimum Surrender Value (MSV) calculation.

The basic formula is:

MSV = Minimum Policy Value − Surrender Charge

The Minimum Policy Value starts from Net Premiums after the 6% Premium Charge and accumulates at a guaranteed 2.00% p.a., compounded daily. [2, 18]

However, the calculation is also reduced by:

• actual monthly charges;
• applicable withdrawals;
• and other policy adjustments.

It does not include Loyalty Reward crediting.

This is another area where wording matters.

The MSV does not mean:

“Your premium earns a guaranteed net 2% every year.”

The guaranteed 2% accumulation applies within the MSV calculation, while actual policy charges continue to be deducted.

What Happens If Index Performance Is Weak for Many Years?

This is where the policy illustration deserves careful attention.

According to the policy illustrations, it contain a “##” warning when the policy is projected to lapse under the guaranteed scenario.

That scenario assumes:

• crediting at the minimum guaranteed interest rate of 2.00%; and
• charges levied at their maximum guaranteed rates.

Under examples cited in the research pack, some policies are projected to lapse between approximately Policy Years 11 and 15, depending on factors such as age, smoking status and residency.

This is significant.

It demonstrates that even a single-premium universal life policy should not automatically be assumed to remain in force indefinitely regardless of performance.

If policy value becomes insufficient to fund ongoing charges after the No-Lapse Guarantee period ends, additional premium may eventually be required to maintain coverage.

A good IUL discussion should therefore include both:

“What happens if the index performs well?”

and

“What happens if crediting remains weak for a prolonged period?”

The second question is arguably more important.

What You Should Pay Attention To

The headline features of Infinite Indexed Legacy are easy to understand:

• 0% index floor;
• no cap;
• high current GAMA participation rate;
• substantial death benefits;
• guaranteed Fixed Account minimum;
• Loyalty Rewards.

The less-obvious details deserve more attention.

1. Current participation rates are not the guaranteed participation rates

The S&P 500 sub-account currently has a 100% participation rate, but its guaranteed minimum is 50%.

GAMA currently has a 260% participation rate, but its guaranteed minimum is 100%.

A policy intended to last decades should therefore be evaluated under more than today’s declared rates.

2. A 0% index floor does not stop policy value from falling

Insurance and policy charges continue regardless of whether an index segment earns 0%.

3. GAMA’s 260% participation rate is only one part of the formula

The performance fee must be applied before the participation rate.

4. COI remains relevant over a very long period

Cost of Insurance can be deducted up to Age 121 and varies with attained age and underwriting characteristics.

Your illustration should therefore be stress-tested rather than judged only on the attractive early policy years.

5. The first five years’ lapse protection has conditions

The No-Lapse Guarantee depends on satisfying cumulative premium requirements.

Withdrawals can cause the privilege to be lost.

6. Early liquidity comes at a cost

Surrender charges apply for the first 10 years.

This is long-term capital.

7. The Minimum Surrender Value is not the same as a guaranteed 2% net return

The MSV calculation still deducts actual monthly charges and applicable surrender charges.

8. The policy is denominated in USD

For a Singapore consumer whose future spending or liabilities are mainly in SGD, the currency denomination should form part of the planning discussion.

How the Quit Smoking Incentive Works

The plan also includes a Quit Smoking Incentive.

Eligible smokers can initially receive Standard Non-Smoker COI rates for the first three policy years.

To retain the favourable classification from Year 4, satisfactory medical evidence must show that the insured has stopped smoking for at least 12 consecutive months.

The evidence includes urine testing for nicotine, cotinine and their metabolites.

If the requirements are not met by the end of Year 3, the insured is reclassified as a smoker and smoker COI rates apply from Year 4 onwards.

This is therefore a conditional incentive rather than a permanent smoker-rate concession.

Who May Consider Infinite Indexed Legacy?

The plan may be worth examining for someone who:

• needs a substantial long-term USD-denominated death benefit;
• is planning a large legacy for beneficiaries;
• wants to explore joint-life First Death or Last Death structures;
• has sufficient capital that can remain committed for a long period;
• understands that policy performance depends on both index crediting and insurance charges;
• wants some index-linked upside without receiving negative index interest in a declining segment;
• is comfortable reviewing the policy regularly rather than treating it as completely “set and forget”.

The plan can also potentially be considered in business-planning contexts.

The underwriting framework specifically provides for situations such as:

• key-person protection;
• business loan protection;
• partnership or shareholder buy-sell arrangements.

However, large cases require financial justification and potentially substantial supporting documentation.

Who May Not Find It Suitable?

Infinite Indexed Legacy may be less suitable if:

• your main objective is simply maximising investment returns;
• you do not need a substantial permanent death benefit;
• you require easy access to the money within the first 10 years;
• you are uncomfortable with USD-denominated assets;
• you expect the 0% index floor to prevent any reduction in policy value;
• you are choosing the plan primarily because of today’s 260% GAMA participation rate;
• you do not want to monitor long-term policy sustainability;
• or the premiums required would consume too much of your liquid assets.

Someone primarily looking for investment accumulation should also compare the policy with investment-focused alternatives rather than assuming an insurance contract is automatically the most efficient route.

Conversely, someone whose primary objective is protection should compare other life-insurance structures instead of focusing only on the index-crediting feature.

The correct comparison depends on the actual planning objective.

What Should You Compare Against Other IUL Plans?

If you are comparing China Taiping Infinite Indexed Legacy with another indexed universal life policy, do not stop at the current participation rate.

Compare:

What to compare	Why it matters
Death-benefit mechanics	Determines how much beneficiaries actually receive
Guaranteed vs current participation rates	Current rates can differ materially from contractual minimums
Index methodology	Different indices behave differently
Index segment duration	Determines when interest is measured and credited
Floor and cap	Defines part of the crediting formula
Performance-fee mechanics	Can affect final index crediting
Premium charge	Reduces the amount entering the policy immediately
Policy Expense Charges	Creates drag on policy value
Cost of Insurance	Critical to long-term sustainability
No-Lapse Guarantee	Check both duration and conditions
Surrender charges	Determines early liquidity
Minimum surrender guarantees	Understand the actual calculation, not just the headline rate
Withdrawal rules	Can affect policy value and guarantees
Joint-life structure	Important for estate-planning objectives

A plan with the highest current participation rate is not automatically the strongest policy.

The entire structure matters.

FAQs

Is China Taiping Infinite Indexed Legacy an investment plan?

It is primarily a protection-oriented indexed universal life insurance policy rather than a direct investment product. Policy value can receive interest through the Fixed Account and index-linked sub-accounts, but the policy also carries insurance and policy charges.

Does the policy invest directly in the S&P 500?

No. The S&P 500 Daily Risk Control 10% Index ER USD is used as part of an index-crediting mechanism. The policyholder receives credited interest according to the applicable participation rate and policy formula rather than directly owning the index.

Can the Index Account lose money when the market falls?

The segment crediting rate has a 0% floor, meaning negative index interest is not credited.

However, the total Policy Value can still decline because policy charges continue to be deducted.

Is the 260% GAMA participation rate guaranteed forever?

No.

The research material states that 260% is the current participation rate.

The guaranteed minimum is 100%. [18]

Is the S&P participation rate guaranteed at 100%?

No.

The current rate is 100%, while the guaranteed minimum is 50%.

Does the policy guarantee 2% returns?

Not in the simple sense of guaranteeing that your total policy earns a net 2%.

The Fixed Account has a guaranteed minimum crediting rate of 2% p.a., and the Minimum Policy Value used for the MSV calculation also accumulates at 2% p.a. [2, 6, 69]

Policy charges and surrender charges can still reduce the eventual policy value or surrender value.

Can Infinite Indexed Legacy lapse?

Yes.

The No-Lapse Guarantee protects the policy during the first five policy years only if its conditions are satisfied.

The research material also identifies policy illustrations in which the policy is projected to lapse under the guaranteed scenario in later years.

Can I withdraw money from the policy?

Yes, subject to minimum withdrawal and remaining-sum-assured requirements.

From Policy Year 11, up to 5% of Policy Value can be withdrawn annually without surrender charges and without reducing the Basic Sum Assured.

What happens if I surrender early?

Surrender charges apply during the first 10 policy years.

The actual amount available will depend on the policy value, Minimum Surrender Value calculation, charges, withdrawals and other applicable policy terms.

Final Verdict: Look Beyond the Index Headline

China Taiping Infinite Indexed Legacy is best understood first as a large, long-term life-insurance contract, and only second as a policy with index-linked crediting.

That order matters.

Features such as a 0% index floor, no cap and a 260% current GAMA participation rate can make the index component look compelling. But none of those features tells you, by itself, whether the policy will deliver a good long-term outcome.

You also need to examine:

• how much insurance you actually need;
• the guaranteed and current participation rates;
• Cost of Insurance over time;
• Policy Expense Charges;
• the first 10 years of surrender costs;
• the five-year No-Lapse Guarantee conditions;
• and what happens if index crediting disappoints for an extended period.

For someone who genuinely needs substantial permanent legacy protection, those trade-offs may be worthwhile.

For someone mainly looking for investment growth, liquidity or direct market exposure, a different structure may make more sense.

The right question is therefore not:

“Is Infinite Indexed Legacy a good IUL?”

It is:

“Does this particular IUL structure solve the financial problem I actually have, and is it still sustainable under less favourable assumptions?”

Compare Before You Commit

If you are considering China Taiping Infinite Indexed Legacy, we can help you compare its death-benefit structure, index mechanics, charges and long-term policy illustrations against other IUL options using consistent assumptions.

The aim is not to find the policy with the biggest headline participation rate—it is to find a structure that still makes sense after you understand what happens in both good and difficult scenarios.