Tokio Marine #goTreasures 2021 Review: Dividend-Paying ILP!
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Tokio Marine GoTreasures Review

Articles written are independent opinions, and are not affiliated/sponsored unless specifically mentioned.

tokio marine gotreasures review

Tokio Marine’s GoTreasures is an investment-linked plan (ILP) that allows policyholders to customise their plans according to their needs and wants, giving this product an edge over others due to its flexibility.

Overview: Key Features of the Plan

Choosing from 5 different currencies

With this plan, policyholders can choose their preferred choice of currency – whether it is SGD, AUD, GBP, EUR, or USD.

Choose your commitment term

After you have selected the currency you are comfortable with, you can also choose your premium payment terms from anywhere between 10 to 30 years.

With these premiums paid, 100% of your money will be directed by Tokio Marine into funding your investment.

Customising Your Plan as You Grow

As you grow into different seasons and stages, GoTreasures also allows you to top up your plan with single recurring premiums or top-up premiums, if you have the financial capacity to do so.

Furthermore, there is also an open option to switch funds.

No Charges for Partial Withdrawals and Premium Holidays

Should you need to liquidity some of your funds and withdraw additional monies at any point in your premium payment term, Tokio Marine GoTreasures does not impose any charges.

From your 3rd year onwards, you can also take unlimited premium holidays, as and when you need them.

Now that you have gotten a quick overview of what this plan offers, we will go into further detail about the nitty-gritties of what sets this ILP apart from others.

General Features

Regular Premium Payment Terms

With 5 major currencies and a variety of payment premium modes, policyholders can choose how often they wish to pay for their premiums.

Since you have the option of committing between 10 to 30 years, this table below shows the regular premiums you will be paying if your payment term spans from 10 to 19 years:

GoTreasures minimum premium 10-19 years

Alternatively, if you are opting for a premium payment term of 20 to 30 years, your premiums will be as follow:

GoTreasures minimum premium 20-30 years

Premium Allocation

All the regular premiums paid will be channelled into purchasing units, which will be allocated to your Initial Units Account during the first 2 years.

From the 3rd year onwards, any units purchased using your regular premiums will be allocated to your Accumulation Units Account.

Initial Units Account VS Accumulation Units Account

Before we get confused about these jargons, let us go through a brief summary of what the Initial Units Account (IUA) and Accumulation Units Account (AUA) are for. Simply put, these are accounts where your allocated units will be found.

Account Type / Fund Units Purchased  Basic fund units purchased with regular premiums will be allocated here if:  Other types of funds will be allocated here: 
Initial Units Account (IUA) Purchased during first 24 months Units purchased with Initial Bonus
Accumulation Units Account Purchased anytime after 24th month Any recurring single premiums, top-up premiums, units purchased with Loyalty Bonus

Plan Flexibility

Redeeming your Units

Tokio Marine GoTreasures offers the flexibility of withdrawal from your Initial Units Account and Accumulation Units Account, even during your premium payment term.

Yet, this is on one condition – that even after you have redeemed your units, your accounts still fulfil the minimum account value, which will be decided by Tokio Marine.

Partial Withdrawals

From the 3rd year onwards of your plan, you are entitled to withdraw partial amounts from your policy. However, this has to be done with a minimum of $500 with each transaction.

There are 2 different ways you can receive your withdrawal:

  1. From only your Accumulation Units Account, if you are withdrawing during the premium payment term
  2. From the Initial Units Account and Accumulation Units Account, if you are withdrawing after the premium payment term

 

For the case of a partial withdrawal from your AUA, typically the minimum account value will be set at $3,000 but this value can also vary from time to time, as Tokio Marine deems fit.

Regular Withdrawal

Apart from a one-off withdrawal, GoTreasures also allows for policyholders to withdraw regularly from either the Initial Units Account and/or the Accumulation Units Account.

Depending on your preference, you can exercise this withdrawal during or after your premium payment term. You can do so either annually, half-yearly, quarterly, or monthly – all you need is a written request.

Reduction in Regular Premiums

What if I am unable to continue paying for the same amount of premiums as I have been paying for? 

Fret not – with the flexibility of GoTreasures, you will be able to reduce your regular premiums in the 3rd year onwards of your plan. This is, however, in the case that you have completely paid for your regular premiums in the first 2 years.

Still, do note that there is a minimum reduction amount, as well as a minimum regular premium you would still have to commit to. So while you do have the flexibility to reduce your regular premiums, there are still certain requirements to be fulfilled.

The minimum reduction amount will differ over time, as determined by Tokio Marine

Increase in Regular Premiums

If you have previously reduced your regular premiums, you now have the option to increase it back, should you decide you have the financial capacity to again.

Similar to reductions, there are also minimum increments in the regular premium amounts you have to pay. The minimum increment amount will also differ over time, as determined by Tokio Marine.

Recurring Single Premiums

Recurring single premiums are smaller sums of money that you can repeatedly put into your account on a stipulated interval basis, with 100% of these premiums being used to purchase units that will be allocated to the Accumulation Units Account (AUA).

Even while you are on a premium holiday, you can still continue paying for the recurring single premium. However, this is with the condition that your regular premium payments have already resumed at the annual rate which has been agreed upon during the commencement date.

Here, you can have a look at the minimum single premium required for each mode:

gotreasures minimum single premium

Similar to regular premiums, you can choose to increase or decrease these recurring premiums, or completely stop paying for it. All it takes is a letter in writing to inform Tokio Marine of your decision.

There’s no rush to make this decision as your recurring single premiums can be made either on the day of your policy purchase, or even after the commencement date.

Premium Top-ups

If you’re considering topping up a larger lump sum at any point during your policy, you can also do so – provided you are investing a minimal amount of $3,000.

All the top-up premiums paid will be channelled into purchasing units which will be allocated into your Accumulation Units Account.

Premium Holiday

Re-visiting one of the highlights of GoTreasures, this plan offers policyholders the option of stopping payment for their regular premiums after the first 2 years.

Your basic plan will not be terminated, as long as you have adequate value in your policy for deduction of termly fees.

How Riders are Affected on a Premium Holiday 

If you had previously opted for a rider, your rider will be converted into a unit-deducting rider. Simply put, this means that your coverage will only include the event of a death or injury which was caused solely and directly by accidents.

The premiums required for this rider will be paid monthly through the Accumulation Units Account. However, if there is an insufficient amount in your account, your rider will instead be automatically cancelled when the premium holiday starts.

Adding, Removing and Changing Life

The flexibility of GoTreasures allows policyholders to add, remove, or change the lives assured with ease at any juncture of the plan.

However, there are certain criteria you have to meet before deciding to add a new life to the policy:

  • The sum of his age and the remaining premium payment terms do not exceed 75 years. Typically, this will not be an issue unless the new life assured is an elderly.
  • The new life assured is 1 month old. This means that parents who are intending to insure their newborns can do so too.
  • If the policyholder had purchased the Advanced Death Benefit prior, its monthly protected charge will be now adjusted based on age and gender of the oldest life assured in the policy
  • There is proof of insurable interest on the new life assured during the application process

 

Full Surrender

In the case where you decide you want to request for a full surrender, there are 2 possible scenarios in which you will receive your surrender value:

  1. While the policy is still in force during the premium payment term – the surrender value less indebtedness shall be paid out, if there are any.
  2. After the premium payment term – the policy value less indebtedness will be paid out.

The indebtedness amount refers to any amount that is owed to Tokio Marine. Only after these are being paid, will your policy officially terminate.

Termination of Policy

Apart from the breach of terms and conditions, other causes such as the following will also lead to the automatic termination of policy:

  • When the last life assured has passed away
  • Full surrender by policyholder
  • The policy value is inadequate and cannot pay for any charges
  • Policy value is lower than Minimum Account Value
  • Non-fulfilment of regular premium payment during first 2 years of the policy

 

Protection

As per your death benefits, you are only entitled to select them at the start of your policy. After the commencement of the plan, you are not allowed to change it.

Basic Death Benefit

In this case, they will receive 101% of the policy value less indebtedness.

Advanced Death Benefit

If the death happened during premium payment term: 

The beneficiary will either receive 101% of policy value less indebtedness or 100% of Net Premium – whichever is higher.

This net premium refers to all the types of premiums that the policyholder might have had paid for prior to his death, excluding the amounts which have been withdrawn.

If the death happened after the premium payment term:

The beneficiary will receive 101% of policy value less indebtedness.

Key Features

Welcome Bonus

Once you have signed up for the policy successfully, you will receive an initial bonus within the first 3 years, allocated to your Initial Units Account.

This bonus you receive will be in accordance with your regular premium band. For a gauge, your plan will fall under band 1 if your annual premiums are less than SGD $12,000 and a maximum of band 5 if you are paying more than SGD $48,000.

gotreasures welcome bonus

Loyalty Bonus

To reward you for committing to GoTreasures, Tokio Marine will also offer loyalty bonuses from the fourth year onwards, with the following rates:

gotreasures loyalty bonus

Not only will you receive a loyalty bonus during your premium payment term, you will also receive it even after the end of the premium payment term – as long as your policy is still in force. Your loyalty bonus will be allocated to your Accumulation Units Account.

Receive Dividend Payouts

When receiving your dividends from these funds, you can either opt to:

  1. Receive it in cash
  2. Re-invest – in which Tokio Marine will pay these dividends to you if it’s $50 and above. Otherwise, they will be re-invested, again, as additional units in your sub-fund of choice.

 

Either way, your dividends will be paid out to you within 30 days of the end of its declaration date.

Fund Offerings

Types of Funds

Tokio Marine GoTreasures primarily invests in mutual funds. These are funds that are managed by another team or firm apart from where the units are being held – in this case, by PricewaterhouseCoppers LLP (PwC).

While you might not be well-acquainted with this name, what you might be assured to know is that PwC’s clients include some of the biggest companies such as Bank of America, IBM, Goldman Sachs, and the like.

This plan offers three main fund categories:

  • Fixed-income funds:

Mutual funds which mainly invest in bonds and other debt securities (e.g. government bonds, corporate bonds, high-yield bonds, etc.).

These funds are best for generating income or preserving your capital.

  • Multi-asset funds:

As the name suggests, this fund includes more than one asset class to create a combined portfolio of cash, equity and/or bonds.

The upside of this provides investors with greater exposure and range. 

  • Equity funds:

Essentially, this helps policyholders increase their capital through stock investment, mostly done in equity securities in listed shares.

These funds are recommended for those who are set out for long-term capital growth. 

Fund Switch

In the event that you wish to switch any units from one fund to the other, you will have to transfer a minimum amount during each fund switch. Additionally, the value of units in both your original and target fund should also fulfil the minimum amount required after the switch.

However, do note that you are not able to switch your units from Initial Units Account to Accumulation Units Account, and vice versa.

Tokio Marine GoTreasures Top 10 Performing Sub-Funds

Name of Fund 5-Year Historical Average (%)
Franklin Technology Fund Acc USD (TABU) 32.21
FSSA Greater China Growth Fund Acc USD (AABU) 20.03
Schroder ISF China Opp Acc USD (SAAU) 19.72
FSSA Regional China Fund Acc SGD (AABS) 19.72
Schroder ISF China Opp Acc SGD-H (SAAS) 18.76
Fundsmith Equity Fund Acc GBP (1AAG) 17.65
Fidelity European Dynamic Gr Acc USD-H (FACU) 15.72
Fidelity European Dynamic Gr Acc SGD-H (FACS) 15.00
Fidelity Asian Special Sit Dis USD (FAAU) 14.51
Fidelity Emerging Markets Acc USD (FABU) 14.47

Accurate as of June 2021.

Past performance does not dictate future returns.

Fees Involved

Type of Charge  Rate  Who does it involve 
Initial 5.4% p.a. on IUA All Policyholders
Policy 1.5% p.a. on IUA and AUA All Policyholders
Premium: Recurring Single Premium and Top-up Premium 5% on each premium

 

Charge will be deducted prior to allocation of premium to the policy

Those who make premium top-ups on top of their basic premiums
Monthly Protection Levied during the first 2 years of policy via AUA; paid in a lump sum for the third year

 

Should there be insufficient amounts in your AUA, Tokio Marine will automatically change the death benefit to a basic death benefit coverage, and you will not be allowed to revert these changes.

MPC applies even while on premium holiday.

Policyholders who opted for Advanced Death Benefit
Third-Party All bank charges associated with receipt of premiums proceeds to the policyholder
Surrender To multiply IUA value by applicable rate during year of surrender Policyholders who end their premium payment term prematurely
Credit Card 1.6% Policyholders who paid premiums via credit cards
Fund Management Fee Already accounted for in unit price, no additional charge All policyholders
Policy Currency Change NIL
Switching NIL
Administrative NIL
Partial Withdrawal and Regular Withdrawal NIL

Compulsory Fees

There are some fees that won’t apply to you. These are the mandatory fees you’d incur if you committed to a policy (in SGD) from its inception to its maturity:

Initial Charge (5.4% p.a. of the initial units account)

Policy Charge (1.5% p.a. of the policy value)

Based on this, the compulsory fees you incur on the Tokio Marine GoTreasures is 6.9%. However, it’s only for the first 2 years. Furthermore, this is overestimated as the initial charge is based only on your initial units account while your policy charge is 1.5% of the policy value.

How much will I receive upon maturity of the Tokio Marine GoTreasures?

The calculation was done for you by a Tokio Marine representative.

Suppose you invest $300 monthly for 20 years and let it compound for another 10 years, the funds have a 10-percent annual return, you have made no withdrawals, and you haven’t taken any premium holidays; you can expect:

Monthly premium: $300

Premium Payment Term: 20 years (240 months)

Annual Fund Performance: 10%

Fees in the first 2 years: 6.9%

Net Fund Performance for the first 2 years: 3.1%

Investment value: $7,630.49

Fees in the next 18 years: 1.5%

Net Fund Performance in the next 18 years: 8.5%

Investment value: $174,697.84

Fees in the last 10 years: 1.5%

Net Fund Performance in the last 10 years: 8.5%

Total Premiums paid after 20 years: $72,000

Total Investment Value over 30 years: $394,988.92

Total Interest Earned: $322,988.92

ROI: 448.60%

My Take on the Tokio Marine GoTreasures

If you don’t already know, GoTreasures is an alternative to Tokio Marine’s GoClassic. Both ILPs offer similar flexibility, bonuses, and the same funds.

The main difference between them is that GoClassic’s minimum investment amount is S$630, while GoTreasures’ is $300 monthly. The policy charge on GoTreasures is also higher at 1.5% as compared to GoClassic’s 1.35%.

The reduction in minimum investment amount is substituted with higher fees in Tokio Marine’s GoTreasures.

Based on my calculations, the GoClassic performs better at 458.76% under similar conditions as the GoTreasures. However, as I do not have the breakeven table for Tokio Marine’s GoTreasures, it is likely that GoTreasures will perform better once it is included.

However, compared to other ILPs in the market, the death benefit only covers 101% of your policy value instead of the higher of 101% of your policy value or net premiums.

This means that if you were to pass on during a market correction or crash, there’s a possibility of receiving less than the premiums you’ve paid.

This policy is similar to Manulife InvestReady Wealth II. Both offer dividend-paying funds and invest directly into the funds. The main difference is that Manulife InvestReady Wealth II offers shorter MIPs and lower fees.

All in all, if you are looking for a flexible investment-linked plan which has the potential to offer you returns for the long-run, GoTreasures will be a good product to consider.

Not only do you have a range of well-performing funds to choose from, you also have a choice of adjusting and topping up or paying for additional premiums, whenever you decide to.

If you’re unsure if this policy is for you or would like to find one that suits you the most, talk to a financial advisor who can provide you with a second opinion.

References

https://www.comparefirst.sg/wap/prodSummaryPdf/194800055D/ULE_UNXD_TPDN_CIN_Summary.pdf

https://www.tokiomarine.com/sg/en/personal/wealth/wealth-planning/goTreasures.html

https://www.tokiomarine.com/content/dam/sg/Life/products/personal/wealth/wealth-planning/goTreasures/Document/goTreasures%20Brochure.pdf

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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