TM FlexiCover is another ILP or investment linked policy launched by Tokio Marine Group to remain competitive in the unit linked arena and for clients who prefer ILPs to be a "Front End Load" policy.
To know more about TM FlexiAssurance or ILP, please see our previous post here. So we will not dwell too much about what TM FlexiCover is but list out the features of this plan and you can decide for yourself whether TM FlexiAssurance or this new TM FlexiCover is for you.
Features of TM FlexiCover:
- TM FlexiCover now has unit & premium deducting riders which can be added into the policy. They are : Unit deducting (Critical Illness, Term riders), and Premium paying (waiver of premiums, payer benefit, spouse riders).
- Has LRO (Life Replacement Option), which can benefit companies for using the policy as a Keyman Insurance or for parents who might want to transfer the policy to their new born kids. (please refer to the terms and conditions)
- Dial-up Option which allows the basic sum assured to be reduced to zero to maximise returns, however the life assured has to be 55 years old next birthday and above and premiums must have been paid for at least 10 years' from policy commencement date. (Many other insurers' ILPs require the policy to have some coverage remaining, so this feature benefits the more senior clients when protection charges are rather high)
- Quit Smoking Discount allows smokers to enjoy non smokers monthly protection charges if he/she drops the habit within the 1st two years and can continue after that as long as the cessation is permanent. (take note; if smoker quits only after the 2nd year, then this feature will not apply. The whole reason for this is to encourage and to support the Quit Smoking movement in Singapore.)
- Increase/Decrease in Sum Assured and premiums are allowed, except that reduction of premiums are only permitted after the first 2 years premiums have been made.
- Unlike the TM FlexAssurance, partial withdrawal is allowed at any time as long as the policy is in force and it incurs no charges.
- As with all Investment Linked Policies, premium holiday can be taken after 2 full years of payment. However, do bear in mind that the policy must have sufficient units to maintain the unit deducting riders (if any) and policy values must be enough to finance the premium paying riders, else the policy will just lapse. In reality, please DO NOT take a premium holiday immediately after 2 years as the units and policy value will definitely not be enough to sustain the riders.