TM Nest Egg (II) (FlexiSaver) — Product Review

Overview

TM Nest Egg (II) (FlexiSaver) is a limited-pay, participating endowment plan from Tokio Marine Life Insurance Singapore that provides monthly Cash Benefits starting from the Cash Benefit Start Date, along with death and terminal illness coverage. The plan offers flexibility through various premium payment terms (5, 10, or 15 years), accumulation periods (0–10 years), and payout periods (10, 15, or 20 years), subject to a maximum total duration of 30 years. Premiums are level and guaranteed throughout the payment term. The plan is quoted by premium — buyers choose their annual outlay (ranging from $2,500 to $10,000 based on CompareFIRST.sg data) and the payout follows accordingly. It participates in the performance of Tokio Marine's Participating Fund through non-guaranteed monthly and terminal dividends, illustrated at 3.00% and 4.25% investment return rates.

How It Compares

At a common basis of age 35, male, non-smoker, with a $10,000 annual premium, TM Nest Egg (II) (FlexiSaver) shows a guaranteed surrender value at year 20 of $19,092. This is significantly lower than the Manulife FlexiRetire's $48,702 at the same premium, though the Manulife plan has a longer coverage term (31–35 years versus 21–25 years). The Tokio Marine plan's participating fund has delivered net returns of 1.64% (5-year) and 4.16% (10-year), with a notably lower total expense ratio of 0.58% over 5 years compared to Manulife's 2.40%, Prudential's 2.27%, and Etiqa's 1.93%. Tiq CashSaver shows net returns of 0.43% (5-year) and 2.72% (10-year). The projected yield to maturity for TM Nest Egg (II) ranges from 1.65% to 2.70% per annum. For a $2,500 annual premium, the illustrated surrender value at year 10 is $13,248 and $2,373 at year 20, with distribution costs of $1,278.

Pros

• Low expense ratio: At 0.58% (5-year), the TER is substantially lower than comparable plans
• Flexible structure: Multiple premium terms, accumulation periods, and payout periods
• No underwriting required: Simplifies the application process
• Monthly income stream: Cash Benefits provide regular payouts during the payout period
• Strong insurer rating: A+ (S&P) credit rating
• Cash Benefit deposit option: Benefits can be deposited with the insurer at prevailing interest rates

Cons

• Lower surrender values: Year-20 guaranteed surrender value ($19,092 at $10,000 premium) is well below the Manulife comparator
• Modest projected yields: 1.65%–2.70% p.a. projected yield to maturity may underperform other savings options
• Non-guaranteed dividends: Monthly and terminal dividends depend on Participating Fund performance
• No SRS or CPFIS payment: Cannot use tax-advantaged accounts for premiums
• Surrender restrictions: Policy must be in force for at least 3 full years before surrender is permitted
• TI definition is narrow: Terminal illness requires expected survival of no more than 12 months

Who It May Suit

This plan may suit individuals seeking a structured savings vehicle with regular monthly income during retirement or a specific life stage, who value low fund expenses and insurer stability. The flexibility in premium and payout terms makes it adaptable to different cash-flow needs. However, those prioritising higher guaranteed surrender values or shorter commitment periods may find other endowment plans more appropriate. Given the modest projected yields, it is less suited to pure investment objectives.

This is general information based on CompareFIRST.sg data, not financial advice. Premiums and features can change; please verify with the insurer or a MAS-licensed financial adviser before making any decision.