TM TERM 99

[lwpro2]

Has anybody bought this term plan before ? How is your view on this. Thanks.

 

[soneat]

1. Suitable for purely legacy purpose. i.e. you want to live something behind for your children etc. You must be 100% clear that you want to hold till "the end", if not, no point getting this.
2. Pricing is competitive for selected profile (i.e. female and certain age group). Go CompareFirst to compare/take a look.

 

[boredboiboi]

Has anybody bought this term plan before ? How is your view on this. Thanks.

What view are u looking at?

it has to see what is ur purpose of buying term till 99. There are a few company having term till 99. The premium difference and save can be of saving and returns to urself.

if u leave till age 90+, u would have pay so much premium, but if u pass away b4 70, u would have paid so much extra premium. Protection is more for lost of income purpose, after age 70-99, u got no income to replace actually unless u still got dependent by then.

 

[BBCWatcher]

1. Suitable for purely legacy purpose. i.e. you want to live something behind for your children etc.

I don't think term life insurance to age 99 even works well for this goal. Regardless, there are many, many ways to convey gifts and bequests to children and other beneficiaries. Even if that's your goal it's still important to compare this vehicle to others.

I agree with Boredboiboi that term life insurance to age 99 is a very strange product.

 

[soneat]

Yes indeed. There are many ways for legacy planning. This is just one of the possible method. Sometimes it can make sense, if the premium is low enough for the profile (gender/age).

For sure, Term to 99 is not essential and not for everyone out there.

 

[lwpro2]

1. Suitable for purely legacy purpose. i.e. you want to live something behind for your children etc. You must be 100% clear that you want to hold till "the end", if not, no point getting this.
2. Pricing is competitive for selected profile (i.e. female and certain age group). Go CompareFirst to compare/take a look.

for the term till 99/100 plan, it seems like even for males, the pricing is not too bad. Talking about purely legacy, if the insured passes away at 99, the sum assured vs the premium paid is around 4% annual.

I guess the insurance company offering such term till 99/100 plan, part of the profile is probably from those living even longer. Say if a person lives longer than 99/100, the premium paid throughout the years would go to the insurance company while the company no need to pay any sum assured.

However, my question on TM term 99 is, from its website, it's saying

• Guaranteed Expiry Benefit
  • Rewards you for longevity
  • Receive 100% of the sum assured at age 99, allowing you to stay focused on your goals

as such, even with a slightly higher premium, how TM is going to make a profit?

Or maybe TM is very pessimistic on the future life span, while other insurance companies are very optimistic?

 

[soneat]

My best guess is for the death before 99 risk, there is a reinsurer to undertake. For the payout at end of term, it would come from the investment returns from the premium collected over the years.