TM Asia Life has recently launched a new product in their TM Nest Egg series, the TM Nest Egg (SP-Guaranteed 3).
The TM Nest Egg (SP-Guaranteed 3) is a 5-year, non-participating single premium endowment with yearly cash dividends, designed to provide a higher interest compare to fixed deposits, while at the same time providing minimal coverage against death and total and permanent disability (TPD).
As this is a non-participating product, the returns are fixed and there is no danger of “bonus cuts”.
Product Specifics
- Yearly cash dividends of 2.5% of the single premium will be paid out at the end of each year.
- Maturity value will be equal to the invested amount.
- 105% of single premium is payable on death or TPD. TPD coverage is till age 65 only.
- Cash or SRS only
- Duration – 5 years
- Minimum premiums – $15,000
- Maximum entry age – 65 next birthday
- No medical underwriting required but pre-existing conditions shall be excluded
This product is clearly meant to compete against similar plans that have been recently launched in the market. One of them is the HSBC Guaranteed Saver Plus which gives a yield of 2.25% to 2.75% (depending on amount invested).
I suppose those who like such products will welcome the possible diversification with more options being offered.