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Extended insurance payouts

13 May 2013 / by / no comments

Extended insurance payouts

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​.tokioma​rine​-life​.sg.


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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