TM Retirement GIO Plus (II): A High-Value Whole Life Option with No Underwriting

Tokio Marine Life Insurance Singapore Pte Ltd has introduced TM Retirement GIO Plus (II), a limited-pay, participating whole life plan designed for individuals seeking lifelong retirement income without the hassle of medical underwriting. As a non-participating-free product that allows cash coupons starting from the 5th policy anniversary, it targets those who prioritize convenience and guaranteed premium structures over complex underwriting processes. With an insurer credit rating of A+ (S&P) and a focus on level premiums paid over just 2 to 5 years, this plan appeals to consumers looking for streamlined entry into long-term wealth accumulation, albeit with significant trade-offs regarding cost and liquidity compared to traditional underwritten plans.

How it compares

When evaluating TM Retirement GIO Plus (II) against similar whole life products on CompareFIRST.sg, the most striking difference is the pricing structure relative to coverage value. The comparison below uses data for a male non-smoker, measured per $100,000 sum assured.

Premium Costs: TM Retirement GIO Plus (II) carries a premium of $31,865 per year per $100k SA. This is significantly higher than FWD Life Income Plus ($10,000), which offers a lower entry point but requires a longer 6–10 year payment term. It is also more expensive than PRULifetime Income Plus (RP) ($25,000). However, it is slightly cheaper than Manulife IncomeBoost ($33,300), though Manulife’s surrender value at year 20 is notably lower ($100,000 vs. $163,770).

Surrender Value & Returns: The plan demonstrates strong cash value accumulation, with a projected surrender value of $163,770 per $100k SA at year 20. This vastly outperforms the peer products listed, which hover around the $99,000–$103,000 mark for similar coverage levels. The net investment returns are illustrated at 1.64% (5-year) and 4.16% (10-year), with a low Total Expense Ratio (TER) of 0.58% over 5 years, which is considerably lower than PRULifetime’s 2.27%.

Key Limitations: The primary drawback is the lack of underwriting ("No Underwriting Required"). While this ensures approval, it typically results in higher premiums for equivalent risk profiles compared to medically underwritten plans. Additionally, unlike some competitors, it does not allow SRS or CPFIS premium payments.

Pros

• High Cash Value Accumulation: The projected surrender value at year 20 ($163,770 per $100k SA) is substantially higher than comparable peers like Manulife and Prudential in this specific comparison band.
• Low Expense Ratio: The TER of 0.58% (5-year average) is efficient compared to the 2.27% seen in PRULifetime Income Plus.
• No Medical Underwriting: Ideal for applicants with pre-existing conditions or those seeking a quick, hassle-free application process.
• Short Payment Term: Premiums are paid over only 2 to 5 years, allowing for faster equity buildup relative to the payment period.
• Strong Insurer Rating: Backed by Tokio Marine Life’s A+ (S&P) credit rating.

Cons

• High Annual Premiums: At $31,865 per year per $100k SA, it is one of the most expensive options in this comparison, costing more than double that of FWD Life Income Plus.
• No SRS/CPFIS Payments: Users cannot utilize Special Savings Account or CPF Investment Scheme funds for premiums, limiting cash flow flexibility for some Singaporeans.
• Non-Guaranteed Dividends: A significant portion of the returns (illustrated at 2.75% and 4.00%) relies on non-guaranteed dividends from the Participating Fund, which have historically varied (e.g., -13.94% in 2022).
• Complex Benefit Structure: The "sum assured" is a notional value for determining cash benefits, which may confuse consumers expecting traditional death benefit mechanics.

Who it may suit

TM Retirement GIO Plus (II) is best suited for individuals who have difficulty passing standard medical underwriting or wish to avoid medical exams entirely. It also appeals to high-net-worth clients who prioritize the speed of issuance and the potential for higher cash value accumulation in later years over lower annual premium costs. Given the lack of SRS/CPFIS options, it is most appropriate for those with ample liquid savings outside of these accounts. Consumers sensitive to annual cash outflow should carefully compare the $31,865 premium against cheaper alternatives like FWD or Prudential, weighing the cost against the higher surrender value benefit.

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.