Skip Navigation Links
Tokio Marine TM Earlycare.
02 Nov 2013 (142 views)

RATING: NEUTRAL

This policy is for a male age 39. it covers death, permanent total disability and critical illness that occurs before age 70. If the policyholder survives without making a claim at age 70, the cover expires, and the total premium paid is "lost".

The coverage is $20,000 for death, $125,000 for critical illness up to age 65 and $100,000 for critical illness from 65 to 70.

The annual premium  is $3,460. Read the PDF below for more details of the cover provided by the policy. Most critical illness policy pays out the full sum assured for a critial illness that has reached a late stage, but this policy pays out a smaller percentage of the benefit for a critical illness that is diagnosed at an early stage or intermediatel stage.

You need to read the benefit illustration (in the PDF) to understand the medical terms and know when a claim is payable.

The benefit illustration showed that the distribution cost is $3,460 which is about two years of premium. This is the amount that is taken away from your premium to pay the commission to the agent and and other marketing expenses. It seem rather high.

The table below shows how much your annual premium will accumulate to age 70 at various rates of interest.

Annual premium Interest rate Term Accumulated amount
1925 3% 31 $99,143
1925 4% 31 $118,775
1925 5% 31 $143,025

If you can earn 3% interest a year, the total premium will accumulate to $99,000 when you are 70. It is $143,000 if you can earn a yield of 5% per annum (which is possible when you invest in blue chip shares.

To evaluate if this policy is worth buying, you should ask - what is the chance of making a claim before age 70? Is it more or less than 50%? I suspect that it is less than 50%.

However, as I do not know the chance of making a claim at an early stage, I have decided to give a neutral rating to this policy.

If you are really worried about the chance of death or critical illness before age 60, it is better to buy a short term policy, where the premium rate is much lower. If you have already accumulated sufficient savings, there is no need to buy an expensive policy to cover critial illness.

TIP: Read the PDF to understand what is exactly covered under critical illness and the definition of the cover. I find it to be quite difficult to understand most of the covers. I prefer to ask the question - what percentage of people will make a claim, and the answer is probably quite low.

Tan Kin Lian



Tokio Marine TM Earlycare.
[Back] [Print]


RATING: NEUTRAL

This policy is for a male age 39. it covers death, permanent total disability and critical illness that occurs before age 70. If the policyholder survives without making a claim at age 70, the cover expires, and the total premium paid is "lost".

The coverage is $20,000 for death, $125,000 for critical illness up to age 65 and $100,000 for critical illness from 65 to 70.

The annual premium  is $3,460. Read the PDF below for more details of the cover provided by the policy. Most critical illness policy pays out the full sum assured for a critial illness that has reached a late stage, but this policy pays out a smaller percentage of the benefit for a critical illness that is diagnosed at an early stage or intermediatel stage.

You need to read the benefit illustration (in the PDF) to understand the medical terms and know when a claim is payable.

The benefit illustration showed that the distribution cost is $3,460 which is about two years of premium. This is the amount that is taken away from your premium to pay the commission to the agent and and other marketing expenses. It seem rather high.

The table below shows how much your annual premium will accumulate to age 70 at various rates of interest.

Annual premium Interest rate Term Accumulated amount
1925 3% 31 $99,143
1925 4% 31 $118,775
1925 5% 31 $143,025

If you can earn 3% interest a year, the total premium will accumulate to $99,000 when you are 70. It is $143,000 if you can earn a yield of 5% per annum (which is possible when you invest in blue chip shares.

To evaluate if this policy is worth buying, you should ask - what is the chance of making a claim before age 70? Is it more or less than 50%? I suspect that it is less than 50%.

However, as I do not know the chance of making a claim at an early stage, I have decided to give a neutral rating to this policy.

If you are really worried about the chance of death or critical illness before age 60, it is better to buy a short term policy, where the premium rate is much lower. If you have already accumulated sufficient savings, there is no need to buy an expensive policy to cover critial illness.

TIP: Read the PDF to understand what is exactly covered under critical illness and the definition of the cover. I find it to be quite difficult to understand most of the covers. I prefer to ask the question - what percentage of people will make a claim, and the answer is probably quite low.

Tan Kin Lian