Review: DIRECT- TM Basic Term (Level) by Tokio Marine Life

DIRECT- TM Basic Term (Level) is a direct-purchase term life insurance plan offered by Tokio Marine Life Insurance Singapore Pte Ltd. Designed for consumers who prefer to buy insurance without financial adviser involvement, this product provides pure protection against death, terminal illness, and total and permanent disability (TPD). It is strictly a level premium plan with no cash value, bonuses, or maturity payouts. The policy includes a compulsory TPD rider and offers coverage terms of 5 years, 20 years, or until age 65 for entry ages 19 to 65.

How it compares

When evaluated on a like-for-like basis for a 35-year-old male non-smoker seeking a $100,000 sum assured over a 20-year term, DIRECT- TM Basic Term (Level) presents a distinct pricing profile compared to its peers.

As shown in the table, DIRECT- TM Basic Term (Level) is significantly more affordable than comparable direct term plans from Great Eastern and HSBC Life. At $93 per year for every $100,000 of coverage, it offers the lowest premium among the listed peers. It is also cheaper than China Life’s offering ($115), representing a cost saving of approximately 19% over the competitor with the second-lowest price in this specific comparison band. All listed products are direct purchase plans with no surrender value or maturity benefits, focusing purely on death and disability protection.

Pros

• Competitive Pricing: Offers the lowest annual premium ($93 per $100k SA) among the compared direct term plans for a 35-year-old male non-smoker.
• Strong Insurer Backing: Issued by Tokio Marine Life, which holds an A+ credit rating from S&P, indicating strong financial stability.
• Comprehensive Core Coverage: Includes death benefit, terminal illness benefit (up to $4.5 million limit), and a compulsory TPD rider, ensuring broad protection without requiring additional optional add-ons for basic disability cover.
• Guaranteed Level Premiums: Premium rates are level and guaranteed throughout the coverage term, providing predictable costs for the duration of the policy.
• Renewability Option (5-Year Term): For those choosing the 5-year coverage term, the plan offers a guaranteed renewal privilege without further medical evidence, up to age 80.

Cons

• No Long-Term Renewability: Unlike some other term plans, this product does not have a general renewability feature for the 20-year or "to age 65" terms. Coverage ends at the expiry of the chosen term unless renewed separately (if applicable to the 5-year tier).
• Limited Entry Age for Longer Terms: For the 20-year term, entry is limited to ages 19–65, and for the "to age 65" term, entry is limited to ages 19–60. Older applicants may face restrictions.
• No Critical Illness Cover Included: While a Critical Illness Accelerator Rider is available, it is not included in the base plan and has stricter entry age limits (up to age 45 for the 20-year term).
• Strict Terminal Illness Definition: The TI benefit requires a prognosis of no more than 12 months to live despite medical treatment. HIV-related terminal illness is explicitly excluded.
• No SRS/CPFIS Payment: Premiums cannot be paid using Supplementary Retirement Scheme (SRS) or CPF Investment Scheme (CPFIS) funds, limiting payment flexibility for some Singaporeans.

Who it may suit

This product is best suited for cost-conscious consumers who want straightforward, high-value protection from a highly rated insurer without paying for additional features they do not need. It is ideal for individuals aged 19–60 who are healthy enough to pass underwriting and wish to secure low-cost coverage for a specific period (such as until children are independent or a mortgage is paid off). The lower premium makes it attractive for those prioritizing maximum death benefit per dollar spent. However, it may not suit those seeking lifelong coverage, critical illness protection within the base plan, or the ability to use CPF/SRS for premium payments.

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.