TM Nest Egg (II) (CashBack 10) — A Short-Term Participating Endowment

Overview

TM Nest Egg (II) (CashBack 10) is a limited-premium, participating endowment plan from Tokio Marine Life Insurance Singapore. It has a 12-year policy term with premiums payable over just 2 years, and it pays a guaranteed yearly cash benefit of 10% of the basic sum assured from the 2nd policy anniversary through to the year before maturity. At maturity, you receive a lump sum comprising 140% of the basic sum assured (guaranteed), a non-guaranteed terminal bonus, and any accumulated cash benefits plus interest.

The plan also provides death coverage of 101% of total annual premiums paid, plus a non-guaranteed terminal bonus. It is quoted by premium — you choose the annual outlay (e.g., $10,000) and the benefits follow. The insurer holds an A+ (S&P) credit rating. Benefit illustrations are shown at 3.00% and 4.25% p.a. investment return rates.

How It Compares

At a common basis (age 35, male, non-smoker, $10,000 annual premium), the table below shows how TM Nest Egg (II) (CashBack 10) stacks up against similar participating endowment plans:

TM Nest Egg (II) has the lowest 5-year total expense ratio (0.58%) among the four, and its 10-year net return of 4.16% is the strongest available in this comparison. Its 5-year net return (1.64%) trails China Life FlexiCash Growth (2.36%) but beats Etiqa Enrich Rewards (0.43%).

For a $10,000 annual premium, the illustrated maturity value is $11,200 guaranteed, with a projected value of up to $17,680 (at 4.25% illustrated rate). The projected yield to maturity ranges from 1.32% to 2.61% p.a. The distribution cost is $770.

Pros

• Low expense ratio — 0.58% (5-year average) is the lowest among comparable plans, which may support better non-guaranteed outcomes over time.
• Strong 10-year net return — 4.16% p.a. on the participating fund, the best in this comparison.
• Guaranteed yearly cash benefits — predictable income from year 2 to year 11.
• Short premium term — only 2 years of premiums for a 12-year policy.
• No underwriting required — simplified application process.
• Strong insurer rating — A+ (S&P).

Cons

• Modest projected yield — 1.32%–2.61% p.a. to maturity is not high; the guaranteed portion alone is only $11,200 on $20,000 total premiums.
• No terminal bonus on surrender — if you exit early, you forgo the terminal bonus entirely.
• Early surrender values are low — at year 10, the illustrated surrender value is just $9,616, below the $20,000 paid in.
• Not SRS or CPFIS eligible — limited tax/cpf flexibility.
• Death benefit is modest — only 101% of premiums plus terminal bonus; this is primarily a savings plan, not a protection plan.
• Non-guaranteed elements — bonuses depend on participating fund performance, which has been volatile (e.g., -13.94% in 2022).

Who It May Suit

TM Nest Egg (II) (CashBack 10) may suit someone who:

• Has a lump sum available and wants a short 2-year premium commitment with a 12-year horizon.
• Wants regular guaranteed cash payouts for cash flow planning.
• Values a low-cost participating fund with a solid long-term track record.
• Is comfortable with the savings-heavy, protection-light balance — the death benefit is minimal.

It is less suitable for those seeking significant life coverage, early liquidity, or CPF/SRS-linked savings.

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.