TM Asia Life launched their TM Legacy Plus (LP) insurance plan a few days ago on 15th January 2010.
TM Legacy Plus (LP) is a limited premium participating whole life plan which provides cover against death, total and permanent disability (TPD) and terminal illness (TI).
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The difference between TM Legacy Plus and it’s earlier version, TM Legacy, is that TM Legacy Plus provides a minimum benefit (based on entry age). The minimum benefit is a multiple of the sum assured and varies by the entry age (Entry age next birthday, MB factor):
- 1-24, 2.50
- 25-29, 2.0
- 30-34, 1.8
- 35-39, 1.65
- 40-44, 1.50
- 45-49, 1.40
- 50+, 1.25
On death, TPD or TI before the policy anniversary on which the insured person is age 65 next birthday, the higher of the minimum benefit or the sum assured plus any attaching bonus is payable.
For example, if someone aged 20 buys a plan with basic sum assured of 100k, his minimum payout (before age 65) on claim will be 100k x 2.50 = $250k
The introduction of this new feature is probably driven by the need to compete with a few other similar products out there that have this feature.
If you analyse this new minimum benefit feature, essentially you are getting a TM Legacy plan with a decreasing term built into the policy. This feature of course comes with a cost as a plain vanilla TM Legacy plan will cost less than the TM Legacy Plus plan.
Nevertheless, the premiums for TM Legacy plans have always been quite competitively priced compared to some of its other competitors.