TM Nest Egg (II) (CashBack 8) — Product Review

Overview

TM Nest Egg (II) (CashBack 8) is a limited-premium, participating endowment plan from Tokio Marine Life Insurance Singapore. With a 10-year policy term and premiums payable over just 2 years, it offers guaranteed yearly cash benefits equivalent to 8% of the basic sum assured, payable from the 2nd policy anniversary through to the year before maturity. At maturity, policyholders receive a lump sum comprising 120% 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 terminal bonus. Illustrated at a $10,000 annual premium, the guaranteed maturity value is $12,360, with a projected value of up to $17,613 at the 4.25% illustrated investment rate. The projected yield to maturity ranges from 1.19% to 2.31% per annum.

How It Compares

Compared against similar endowment plans on CompareFIRST.sg (all quoted at $10,000 annual premium, age 35 male non-smoker), TM Nest Egg (II) stands out on several metrics. Its participating fund delivered a 5-year net investment return of 1.64% and 10-year return of 4.16% — notably stronger than Etiqa's Enrich Rewards (0.43% 5-year, 2.72% 10-year) and China Life's FlexiCash Growth (2.36% 5-year, 10-year data not available). The total expense ratio of 0.58% (5-year average) is the lowest among peers, compared to 1.93% for Etiqa, 2.40% for Manulife Spring (II), and 3.31% for China Life. Tokio Marine's A+ credit rating (S&P) also provides strong insurer financial strength. However, the plan's projected yield of 1.19%–2.31% p.a. reflects the trade-off between guaranteed cash benefits and growth potential.

Pros

• Guaranteed yearly cash benefits — 8% of sum assured paid annually from year 2 to year 9, providing regular income
• Short premium term — only 2 years of premium payments for a 10-year plan
• Low expense ratio — 0.58% (5-year average) is the lowest among comparable products
• Strong fund performance — 10-year net return of 4.16% outperforms peers
• No underwriting required — simplified application process
• Insurer financial strength — A+ credit rating from S&P

Cons

• Modest projected returns — yield of 1.19%–2.31% p.a. may lag other investment options
• No surrender terminal bonus — terminal bonus is only payable on death or maturity, not surrender
• Limited death coverage — only 101% of premiums paid, offering minimal protection
• No CPFIS or SRS payment — restricts funding flexibility
• Non-guaranteed elements — terminal bonus and deposited cash benefit interest rates are not guaranteed
• Distribution cost — $772 in charges on a $10,000 annual premium

Who It May Suit

This plan may suit investors seeking a short-premium, fixed-term savings vehicle with regular guaranteed payouts and a conservative risk profile. The 2-year premium commitment and 10-year term make it accessible for those wanting a defined savings horizon. It may appeal to those prioritising capital guarantees and predictable cash flows over higher growth potential, and who are comfortable with the participating fund's equity exposure (25% actual allocation). However, those seeking meaningful life protection or higher growth may need to look elsewhere.

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.