Tokio Marine TM Term Assure (II) Review: [2021] Analysis
Singapore Financial Planners Log

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Tokio Marine TM Term Assure II Review

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tm term assure ii review

Tokio Marine’s TM Term Assure (II) is a non-participating, regular premium term life insurance. It provides you coverage from death, and terminal illness. This policy is made available in 4 currencies: SGD, USD, AUD, and GBP.

Criteria

  • Minimum sum assured of $100k

 

Product Features

Policy Terms

The policy is available in the following coverage periods:

  • 5 years or 10 years (with Guaranteed Renewal Privilege)
  • 11 years till 85 Age Next Birthday (ANB)

 

Premium Payment Terms & Options

The TM Term Assure (II) can be bought as a Single and Third Party Policy. You may purchase the Single Policy for your personal coverage and the Third Party Policy to cover another individual.

For a Single Party Policy of a 35 ANB non-smoking male who has a Basic Sum Assured of S$500K with a coverage period of 40 years, he would incur a premium payable of S$2.20 daily.

Premium rates are determined by the prevailing rates at the time of renewal, but stay levelled and guaranteed during the coverage term.

You may purchase the Third Party Policy for your key business personnel to protect your business against potential financial losses in the event of death.

The following table is a sample of a 45 ANB male insured under the Third Party Policy. Your business will receive a S$2m payout should the life insured encounter death.

Plan Coverage Period Sum Assured Monthly Premium
TM Term Assure (II) 5 years S$2Mil S$119.55

Protection

Death Benefit

The Death Benefit dispenses a payout of the Sum Assured minus any payables in the event of death.

Total and Permanent Disability (TPD) Benefit

The TPD Benefit is a compulsory part of the TPD Rider (see Total and Permanent Disability (TPD) Rider)

The insured will receive a payout amounting to the TPD Rider sum assured, deducting all outstanding payables. TPD Benefit payouts are capped at S$4.5m across all Tokio Marine policies under the same insurer.

The Basic Sum Assured will be decreased by the TPD Benefit payout value. In the event where the Basic Sum Assured is deducted to zero, the term plan benefits are deemed to be fully reimbursed, terminating the policy.

Total and permanent disability varies at different life stages:

Life Stage Definition of Total and Permanent Disability
0 to 18 ANB Disability arising from illness or accident or sickness, to the extent which the insured

  • Is confined to an institution such as a home or a hospital.
  • Is in need of close medical care and attention.
  • Is still disabled for more than 6 months after diagnosis of disability by Tokio Marine’s appointed medical practitioner
  • Is certified permanently disabled by Tokio Marine’s appointed medical practitioner.
18 to 65 ANB Disability arising from illness or accident or sickness, to the extent which the insured

  • Is completely unable to undertake income-earning activities
  • Is unable to execute at least 3 out of the 6 “Activities of Daily Living”^, despite the usage of assistive devices, and needs caregiver assistance to carry out the whole activity.
  • Is still disabled for more than 6 months after diagnosis of disability by Tokio Marine’s appointed medical practitioner
  • Is certified permanently disabled by Tokio Marine’s appointed medical practitioner.
65 to 70 ANB Disability arising from illness or accident or sickness, to the extent which the insured

  • Is unable to execute at least 2 out of the 6 “Activities of Daily Living”^, despite the usage of assistive devices, and needs caregiver assistance to carry out the whole activity.
  • Is still disabled for more than 6 months after diagnosis of disability by Tokio Marine’s appointed medical practitioner
  • Is certified permanently disabled by Tokio Marine’s appointed medical practitioner.
70 to 85 ANB  Due to illness or accident or sickness, the insured suffers severance or complete and irreversible loss in ability of either of the following

  • Eyesight in both eyes
  • Two of his limbs above or at the ankle or wrist
  • Eyesight in one eye and one limb above or at the ankle or wrist

^“Activities of Daily Living” are defined as being able to:

  • Transfer oneself from and to the wheelchair
  • Move across rooms on level ground
  • Use the toilet or control bladder and bowel functions
  • Dress oneself and adorn any disability aids wherever necessary
  • Wash oneself in the shower or clean oneself sufficiently via other methods
  • Consume food prepared independently

 

Terminal Illness (TI) Benefit 

Should terminal illness befall, the TI Benefit will be reimbursed at Death Benefit value, capped at S$4.5m across all Tokio Marine policies under the same insurer. The remaining amount would be paid in other case(s) where insurance coverage is needed.

The Basic Sum Assured will be decreased by the TI Benefit payout value. In the event where the Basic Sum Assured is deducted to zero, the term plan benefits are deemed to be fully reimbursed, terminating the policy.

Terminal illness is defined as an diagnosed illness that leads to death in 12 months, excluding HIV infection. The illness must be certified by a medical specialist and verified by Tokio Marine’s appointed medical professional.

Additional Features & Benefits

Conversion Privilege

Under the Conversion Privilege, your basic plan can be converted into a premium whole life insurance or endowment policy without the need to provide additional medical proof.

The following conditions must be fulfilled for Conversion Privilege to be successful:

  • You are below 60 ANB.
  • You have paid all premiums payable under your basic plan in full.
  • You have made premium payment for your new policy plan.
  • The coverage of your new plan is less than the Basic Sum Assured. Where the amount exceeds, underwriting will take place.
  • Your new policy has similar coverage as your original policy. Tokio Marine holds the right to assess the comparability of your new and original policy.

 

Guaranteed Renewal Privilege

The Guaranteed Renewal Privilege automatically renews your plan for the same policy terms and Basic Sum Assured, without the need to provide additional medical proof. Only those insured under the 5 years or 10 years coverage plan are eligible for this option.

The following conditions must be met for Guaranteed Renewal Privilege to be successful:

  • Your basic plan’s renewal premium has been paid before the coverage term expires
  • You are below:
    • 80 ANB (for 5 years coverage period)
    • 75 ANB (for 10 years coverage period)*

 

*Note that policyholders aged 66 to 70 years old are not eligible for the Guaranteed Renewal Privilege, as the renewal age for the 10 years coverage period is capped at 75 ANB

For every renewal, the premium payable will be based on the prevailing rates at the insured’s attained ANB. The premium stays level and guaranteed across the term of coverage.

Guaranteed Insurability for Additional Insurance Option (“GIAI Option”)

The GIAI Option allows you to buy a new policy without additional medical proof where you reach the following life milestones:

  • Change in marital status
  • Entrance into parenthood by having a newborn or through adoption
  • Graduation from tertiary institutions
  • Purchase of property

 

The following conditions must be met for GIAI Option to be successfully exercised:

  • You are less than 50 ANB
  • You have not made any claims under your current plan.
  • Your GIAI Insurance coverage is the lower of 50% Basic Sum Assured and S$500k.
  • Your GIAI Insurance has similar coverage as your basic policy. Tokio Marine holds the right to assess the comparability of your new and original policy.
  • You submitted your application in writing and supporting documents within 90 days the life milestone occurred.

 

The GIAI Option can be activated twice at maximum across all your Tokio Marine policies, capped at S$500k.

Free Look Period 

Should you change your mind about getting the TM Term Assure (II), you may submit your policy cancellation in writing within 14 days upon receiving the policy document.

You will be refunded the premiums you have paid, deducting medical and other expenses incurred for the policy’s risk assessment. Policy documents posted by mail are assumed to have been sent and received within 7 days after the post date.

Add-on Riders

Total and Permanent Disability (TPD) Rider

This TPD Rider is a mandatory add-on to your basic plan, with zero surrender value. Its premium rates are guaranteed, with payment terms following your basic policy.

Early Critical Illness (ECI) Accelerator Rider

The ECI Accelerator Rider covers medical treatment claims for early stage, intermediate stage and major stage critical illness. It also protects the insured against critical illnesses in special and juvenile conditions.

Critical Illness (CI) Accelerator Rider

Under the CI Accelerator Rider, the insured diagnosed with critical illness of a major stage, will be entitled an advance payment of the death benefit, capped at the Rider Sum Assured.

Protect 1 Lite Rider 

The Protect 1 Lite Rider is a disability benefit reimbursed in monthly payouts when the insured becomes unable to execute one out of the six “Activities of Daily Living”. Monthly payouts start 90 days after the insured is certified by a Tokio Marine’s appointed medical practitioner.

Payouts will be made consecutively for a maximum of 72 months.

The following table consists of yearly premium rates for a 20 ANB individual with a disability benefit of S$1k over a 11-year coverage period.

Yearly Premium for a Disability Benefit of S$1k per month (in S$)
Coverage Period 20 ANB 30 ANB 40 ANB 50 ANB
11 12.70 14.70 31.20 103.70
20 13.10 18.60 52.70 173.90
30 15.10 31.30 95.70
40 21.60 55.30
50 35.10

Premiums paid by cash are non-guaranteed and level. Rates will be calculated based on coverage period and entry age.

KidAssure GIO Rider 

The KidAssure GIO Rider dispenses hospitalisation benefits and provides coverage against death and juvenile medical conditions. When your child reaches 19 ANB, you will enjoy an 80% refund of the premiums paid regardless of any prior claims on Child Illness Benefit and Child Hospitalisation Benefit.

While a health declaration is needed, supplementary medical documents are not required for application. Premiums are payable for only 5 years

Pay for only 5 years and cover your child all the way till age 19.

Child Illness Benefit

The Child Illness Benefit dispenses 20% of the Rider Sum Assured for will be payable for each medical condition. This benefit does not cover prevailing medical conditions that the child has been diagnosed with.

  • Autism of Specific Severity
  • Bacterial Meningitis
  • Generalised Tetanus
  • Insulin Dependent Diabetes Mellitus
  • Kawasaki Disease
  • Leukaemia
  • Loss of Use of Limbs
  • Major Head Trauma
  • Osteogenesis Imperfecta
  • Glomerulonephritis with Nephrotic Syndrome
  • Severe Asthma
  • Severe Epilepsy
  • Severe Juvenile Rheumatoid Arthritis
  • Type 1 Juvenile Spinal Amyotrophy
  • Viral Encephalitis
  • Wilson’s Disease

 

Child Hospitalisation Benefit

The Child Hospitalisation Benefit dispenses 1% of the Rider Sum Assured for the following conditions that result in hospital admission. A maximum of 5 claims can be made without deducting the Rider Sum Assured.

  • Burns
  • Choking
  • Dengue Fever
  • Hand, Foot & Mouth Disease
  • Measles
  • Pulmonary Tuberculosis
  • Rabier
  • Zika

 

Death Benefit

Regardless of whether any previous claims have been filed, the entire amount of Rider Sum Assured will be dispensed should death occur. If the child dies because of a pre-existing medical condition, the payout will consist of all the annual premiums, less interest and payables.

Waiver of Premium Rider & (Enhanced) Payer Benefit Rider

Where the insured experiences death, total and permanent disability, and/or is diagnosed with any critical illness under policy coverage, his subsequent premiums payable will be waived.

My Take on the TM Term Assure (II)

Since term life policies are deemed the most affordable form of life insurance and offer similar coverage (i.e. Death, TI, and TPD Benefits) across the market, price competitiveness becomes key when it comes to selecting a term plan.

With reference to the following table, the TM Term Assure (II) is one of the more affordable term plans among the insurers. It is hence suitable if you have just entered the working world and are looking for budget-friendly insurance coverage.

Tokio Marine Term Assure (II) Aviva MyProtector-Term Plan II PRUActive Term China Taiping i-Protect Manulife ManuProtect Term (II) NTUC TermLife Solitaire AIA Secure Flexi Term^
Annual Premium (SGD$) 545 535 685 498 637 733 536
Total Premium (SGD$) 21,800 21,400 27,400 19,920 25,480 29,320 21,440

Upon comparing the renewable term plans among various insurers below, we see that TM Term Assure (II) comes in second, with Aviva’s My Protector Term Plan (II) being the most affordable term plan in the market.

Tokio Marine Term Assure (II)*  Aviva My Protector Term Plan II* Manulife ManuProtect Term (II) AXA Term Protector
Annual Premium (SGD$) 545 535 637 610
Total Premium (SGD$) 21,800 21,400 25,480 24,400

^Premiums are based on a 30 ANB male, non-smoker with a Sum Assured of S$500K for a 40 year period

*Renewable and convertible options are both available

Despite the TM Term Assure (II) being more expensive than Aviva’s My Protector Term Plan (II), its KidAssure GIO Rider is ideal if you are looking to insure your child against death and medical conditions. It is also a good option if you are looking to protect your business against risk by insuring your key business partners and staff via the Third-Party Policy.

The TM Term Assure (II) also offers flexibility through convertible and renewable options (Conversion Privilege, Guaranteed Renewable Privilege and GIAI Option) to cater to the different needs at various life stages. It allows you to obtain more extensive coverage through its ECI, CI, and Protect 1 Lite Riders.

And because of that, we’ve named  Tokio Marine’s TM Term Assure (II) as one of the best term plans in Singapore.

As we all have different priorities and preferences, the ideal insurance for others might not be a suitable plan for you.

Need further help in choosing the best term policy for your needs? Contact a trusted financial advisor. They will give you an unbiased comparison of the available plans and provide you with balanced advice to aid your selection of the most suited term policy.

References:

https://www.tokiomarine.com/sg/en/personal/protect/protect-your-life/tm-term-assure-II.html

https://www.tokiomarine.com/content/dam/sg/Life/products/personal/protect/life/TM-TERM-ASSURE-II/TM%20Term%20Assure%20(II)%20English%20Brochure%20(BN1).pdf

Product Summary

Disclaimer: Each article written obtained its information from reliable sources and should be purely used for informational purposes only. The information provided by Singapore Financial Planners and its affiliated parties is not meant to be construed as financial advice. Singapore Financial Planners shall not be held liable for any inaccuracies, mistakes, omissions, and losses incurred should you act upon any information listed on this website. We recommend readers to seek financial planning advice from qualified financial advisors. 

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