TM Asia Life is the latest insurer to launch a 5-year non-participating single premium insurance product, called TM Nest Egg (SP-Guaranteed 4).
The plan requires a minimum of $15,000 and gives a fixed yearly dividend (interest) of 2.45%. The investment can be using either cash or SRS.
No medical underwriting is required and the maximum age to be eligible for the product is 70 years old.
There will be a slight insurance protection of 5% of the premiums for death and total and permanent disability (TPD). Meaning if someone dies during the term of the plan, his dependents will receive 105% of the premiums paid.
The plan is only suitable for those who don’t require the funds for 5 years as there will be surrender penalties for early termination of the plan. The money received in the event of an early surrender will not be the same as the money put in.
TM Nest Egg (SP-Guaranteed 4) will be withdrawn once the subscription target has been met.
Judging from the speed which Prudential took to sell out their PruInvestor Guaranteed Plus in just a few weeks, this latest launch by TM Asia Life will probably not be on the market for long.