Short Term Endowment added into TM Nest Egg Series (8 years and 10 years)

The innovative department of Tokio Marine Life Insurance has once again launched 2 new limited payment short term endowment policies on 21 September 2015 to encourage clients to save with them. The name of the policies are : CashBack 8 & CashBack 10. Features are as follows:

• Premium Term of 2 years
• Guaranteed Annual Cash benefit payment from 2nd policy anniversary (8% of Sum Assured for Cashback 8; 10% of Sum Assured for Cashback 10)
• Last Entry Age : 70 ANB (Age Next Birthday) 
• GIO (Guaranteed Issue Offer) or No Underwriting required
• Minimum Premium is $10,000
• There is surrender benefit after 1 year
• Your Gender & Smoking ability will not affect premiums, only Age matters
• No increase of Sum Assured is allowed once policy is incepted.
• Decrease in sum assured will be treated as a partial surrender

Here's the brochure link for more details. If you use a financial calculator, the SIMPLE Annual ROI for the Cashback 8 is 3.66%, while the Cashback 10 is 3.6%

If you are interested to know more about the plan or to get one for yourself, do drop us a contact.

Maximising your SRS with an Endowment Plan

SRS (Supplementary Retirement Scheme) was once a household word when it was introduced and somehow now it has lost its pizazz. However, it is still a worthwhile consideration for your retirement and tax planning in Singapore

For people who are beginning to set aside money for their retirement plus tax planning and are not familiar with SRS, here're some examples:

                                              Another Example:

In a nutshell , the things you need to know if you are utilising your money for SRS are:

1. There will be annual savings in your income tax if you belong to the higher tax bracket.
2. Your SRS contribution can be used to buy Insurance policies which appreciates with time & get you more for retirement.
3. Upon withdrawal, only 50% is subject to tax & you can expect greater savings should you spread your withdrawals over a 10 years period.
4. The interest rate on balances in the Supplementary Retirement Scheme (SRS) Account which are not invested is currently approximately hovering at 0.05% p.a. (POSB 2012)
5. Moves you into lower tax bracket
6. SRS contributions must be made by 31st December each year
7. Singaporeans annual cap-$12,750, Foreigners annual cap-$29,750 (as they do not have CPF)

So that leads us to the reason why this post is written. Tokio Marine has launched a single premium endowment policy called TM Retirement@63 on 8 January 2015. It basically provides 10 annual Cash Benefits starting from policy anniversary at which the assured reaches age 63 on next birthday (which is also the payout date). Once the client receives all 10 annual payouts, the policy then terminates.
The nice thing about the plan is that it is also available in cash mode & is a guaranteed acceptance policy. As with most insurance, there is also some form of death benefit unlike other SRS investments which basically returns you whatever is left in the account at the point of death (which at times can mean a loss in capital).

If you are still wondering which insurance plan is suitable for SRS, then look no further and contact this FPC for more details about TM Retirement@63 !

TM Nest Egg (GIO Cashback)

OK, let's clear the air before we begin; as recently TMLS or Tokio Marine Life Insurance Singapore has launched a series of GIO products and in case you are wondering what does the acronym stand for; it is just short for Guaranteed Issuance Offer or in layman's term...you buy, they sell (No questions asked), except when you decide to add some "riders" into the policy, then the irritating health questions will start popping up.

I remember back in the heydays when AIA Singapore was the number 1 insurance company in Singapore, there was a product which was very popular amongst the ladies and that was the 18TMAE or some might call them the savings plan with coupons every 3 year. However with the low interest rates environment, those endowment policies slowly became obsolete.

But on 2 January 2014, the wonderful marketing team of Tokio Marine Life Insurance has brought a similar but BETTER product back to life! (No pun intended). The key features of the TM Nest Egg (GIO Cashback) are:

• Currently offers the highest return in the market at 3.8%
• Has limited payment term of 5 & 10 years (so you can plan your commitment in a more foreseeable time frame).
• Available policy term is 10 to 25 years (in multiples of 5 years)
• Guaranteed yearly cash benefits from 2nd year onwards. (in the past it was only every 3 years)
• Minimum Annual premium is $4500
• Maximum entry age is 75 ANB (Age next birthday) 
• Guaranteed Acceptance
• Yearly Cash Benefits can be re-deposited with TMLS at 3.75% pa at a Non Guaranteed rate.
• Death Benefit is at 105% of Total premiums paid plus accumulated bonuses.

 Want to know more? Contact us

Wealth Accumulation

Wealth Accumulation seems to be the buzz word these days when the entire financial world is so full of uncertainty. However, with so many options demanding for our already stretched dollar, which plan is the right one?

Here's a great plan for those who are rather risk adverse :
Tokio Marine's TM Nest Egg (Limited Payment)

Features

• TM Nest Egg is an Endowment plan and is for anyone between ages 1 to 60
• Financial Protection in event of Death & Total & Permanent Disability
• Policy terms from 10-30 years (in multiples of 5) 
• Limited Premium Payment terms from 5 - 25 years (also in multiples of 5)
• Option  to receive maturity proceeds in lump sum or yearly payment between 3 and 25 years.
• Min Sum Assured S$30,000
• Has Child Maturity Option, which allows the child to purchase a new Whole Life or Endowment policy without further medical evidence.

An Example (Click on the image to have a clearer view) :

Benefits of this Wealth Accumulation plan

1. Maturity Benefits if it's taken in instalments, the remaining balance left with the company still earns interest, which is  definitely much better than Fixed Deposits rates in Singapore; what it means to you is that it helps you control your savings too and not squander it on some impulse purchases if the proceeds were to be taken in a lump sum instead.
2. When compared to their closest rival, Tokio Marine's TM Nest Egg (LP) is a limited payment plan as compared to their competitor, which is a regular payment plan. (Wouldn't a limited liability be better for your wealth accumulation planning since it helps you forecast your expenditure in a more foreseeable future?)
3. Tokio Marine's TM Nest Egg (LP) has POSITIVE guaranteed yields as compared to their competitor's negative yields throughout their policy term. (Can you remember reading in the news about certain insurers cutting bonus rates over the recent years? These same insurers gave high projections when policies were sold initially-A high percentage of those projections were Non-Guaranteed!)
4. If you are buying Tokio Marine's TM Nest Egg (LP) policy for your children, the insurer is currently the only company in Singapore (as of August 2011), which allows "waiver of premiums" rider to be bought on both parents lives, so that whatever happens to either parent, your gift to your child is still secured. (Other firms only has this rider available to the payer)

If you want to find out more, feel free to contact us now!