Extended insurance payouts

by | May 13, 2013

Life insurance company provides income for the client’s lifetime.


Addressing the issue of increasing life expectancies and that some current life insurance plans cap their payouts after 10 to 20 years, Tokio Marine Life Insurance Singapore (TMLS) has introduced two insurance plans that will provide income for the client’s lifetime, and that such streams of income do not reduce the death benefit and surrender value during the payout period.

The new plans include TM Infinite VIP and TM Retirement GIO (Guaranteed Issuance Option). Together with its existing TM Retirement, which was launched in 2011, TMLS now has three plans providing a lifetime income stream.

“Singapore is facing the issue of an ageing population. With higher standards of living and better healthcare, we are also seeing longer life expectancy. The Government has done their part in planning for its people’s retirement when CPF was implemented some 58 years ago but this alone may not be sufficient. We are concerned that many Singaporeans are not prepared financially for retirement,” said Lance Tay, CEO of TMLS.

“At TMLS, we believe in giving our clients the financial security and peace of mind that they deserve. Lifelong retirement income should not be a good-to-have but a necessity as a true retirement funding solution. We are committed to developing product solutions that meet our clients’ key financial needs.”

TM Infinite VIP – This is a single premium, participating whole life plan designed to provide a lifetime of monthly income stream for as long as the life assured lives. Every year starting from the fifth policy year, the policyholder can expect to get a payout totalling 4.5-percent p.a. of the single premium. This is the earliest payout of cash benefit for any policy of similar nature in the market, according to TMLS.

The plan also offers guaranteed cash value of 80 percent of the single premium from Day 1. This will remain at the same level throughout the life of the policy. By the tenth year, the total surrender value would be expected to grow to 100 percent of the single premium paid.

In addition, the plan offers 101 percent of the single premium as the guaranteed death benefit from policy Day 1. This guarantee remains at the same level throughout the life of the policy. Another beauty of this plan is the extensive entry age from one to 70 years old (at the next birthday) (most entry ages end between 60 and 65 years old, according to TMLS).

TM Retirement GIO – This is a limited premium, participating whole life plan designed to provide annual cash benefits from age 55, 60 or 65 for as long as the life assured lives.

For instance, if a 40-year-old purchases a TM Retirement GIO for a retirement income payout from age 65 onwards, he would pay an annual premium of S$15,408 over 15 years and receive an annual income stream of S$24,000 (slightly more than 10 percent of total premiums paid) for as long as he lives.

Should death occur at the age of 85, he would have received total annual cash benefits of S$504,000. In addition, his beneficiaries would receive the death benefit of close to S$289,000, meaning the policy would have paid out a total amount of S$793,000.

The client is also assured of capital preservation in the form of a guaranteed surrender value at 100-percent total annual premiums paid starting from the payout age. In addition, payment of the cash benefit does not reduce the death benefit and surrender value, thereby giving the client insurance and liquidity; both as important in the golden years of retirement. According to TMLS, other similar type of retirement funding solutions available in the market would see the guaranteed surrender value depleted over time.

For more information, go to www.tokiomarine-life.sg.






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