Review: TM Term Assure (II) (Level & Convertible) by Tokio Marine Life

TM Term Assure (II) is a regular premium, level term life insurance plan offered by Tokio Marine Life Insurance Singapore Pte Ltd. Designed primarily for pure protection, this non-participating policy provides coverage against death and terminal illness without any cash value, surrender value, or maturity benefits. The plan offers flexible coverage terms ranging from 5 or 10 years (with guaranteed renewal options) up to age 85 next birthday. A key differentiator is its convertibility feature, which allows the policyholder to convert the term plan into a whole life or endowment plan without further medical underwriting, provided the conversion occurs before the insured’s 60th birthday. Additionally, it includes a Guaranteed Insurability Option for specific life events, such as marriage or childbirth, allowing for additional coverage up to SGD500,000 without new medical checks.

How it compares

When evaluating TM Term Assure (II) against similar term life products on the market, premium costs and coverage flexibility are the primary points of comparison. The data below illustrates the cost difference for a standard profile: Age 35, Male, Non-smoker, measured per $100,000 Sum Assured.

Premium Analysis: At $620 per year per $100,000 sum assured, TM Term Assure (II) is priced significantly higher than its peers. For comparison, Great Eastern’s Term 2 offers a much lower premium of $208, while Singlife Elite Term II and HSBC Life’s Term Protector are priced at $535 and $523 respectively. This suggests that TM Term Assure (II) may carry a premium load for its specific features, such as the robust convertibility clause or the insurer’s brand positioning, rather than offering the lowest cost entry point for pure term coverage.

Coverage & Features: While competitors like Great Eastern offer lower premiums, they may not include the same level of guaranteed renewability or conversion privileges. TM Term Assure (II) stands out with its convertibility feature, allowing a switch to whole life/endowment plans without medical evidence before age 60. It also offers Guaranteed Renewal for 5- and 10-year terms, ensuring coverage continuity up to ages 75–80 depending on the term chosen. In contrast, many standard term plans do not guarantee renewal beyond the initial term or lack the option to convert without new underwriting.

Pros

• Convertibility: Allows conversion to whole life or endowment plans without medical underwriting before age 60, providing a pathway to lifelong coverage.
• Guaranteed Renewal: For 5- and 10-year terms, renewal is guaranteed without further medical evidence, up to ages 75–80.
• Guaranteed Insurability Option (GIAI): Permits additional coverage of up to SGD500,000 (or 50% of SA) without medical underwriting upon specific life events (marriage, childbirth, graduation, property purchase).
• Strong Financial Backing: Issued by Tokio Marine Life, which holds an A+ (S&P) credit rating.
• Terminal Illness Benefit: Includes coverage for terminal illness with a limit of SGD4,500,000 (inclusive of other policies), reducing the sum assured upon claim.

Cons

• Higher Premiums: At $620 per $100k SA, it is notably more expensive than competitors like Great Eastern ($208) and Singlife/HBSC (~$530).
• No Cash Value: As a pure term plan, it has no surrender value, maturity benefit, or investment component.
• Limited Renewal for Older Entrants: Guaranteed renewal is not available for 10-year terms if the entry age is 66–70.
• Conversion Age Limit: The conversion privilege must be exercised before the policy anniversary on which the life assured turns 60, limiting flexibility for those who wish to convert later.

Who it may suit

This product may suit individuals who prioritize long-term security and future insurability over immediate cost savings. It is ideal for those who anticipate needing lifelong coverage but want to secure today’s rates and health status through the convertibility feature. It may also appeal to people planning major life milestones (marriage, children) who value the GIAI Option for hassle-free additional coverage. However, consumers strictly seeking the lowest premium for temporary protection may find cheaper alternatives like Great Eastern Term 2 or Singlife Elite Term II more cost-effective.

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.