Tokio Marine Life Insurance Singapore Ltd withdraws the TM Legacy Lifetime and TM Legacy Plus yesterday. A mass email was sent yesterday at 4:37pm stating that:
"Please be informed that TM Legacy Plus and TM Legacy Lifetime are withdrawn for new business with effect from today, 22 December 2014 (Monday). "
Existing proposal can still be submitted and must reach Tokio Marine by 26 December 2014 3pm.
The withdrawal comes as a shocked to many. Many advisers expressed their unhappiness over the sudden withdrawal as it is almost impossible to find a more competitive whole life product especially for TM Legacy Lifetime. Besides, the EarlyCare Rider attached to it is one of the simplest to understand in the industry.
Another impact to this withdrawal is the lost of guaranteed premiums for Dreaded Disease Accelerator Rider if it is attached to TM Legacy Lifetime. This means we are once again back to square one in which there is no insurer which can provide guaranteed premium for dreaded diseases coverage.
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xyz says
What’s there to be surprised about? I already speculated before that the new owner of ex-AsiaLife will be similar to rest of industry and be more profit-oriented. Nothing to see move on.
zhummmeng says
You will see more changes in 2015 when the RBC comes into effect. Insurers will have to set aside higher capital to hedge its liability for their par products .TMAsia has the most and sold the most par products in 2013, up to 90% of its sales came from par products.
A few things will happen in 2015.. Insurers will cut the commission for these products; to lower the return of its par products, wholelife and endowment,; to phase out par products or to make the par products more complicated to cover up the reduction in coverage and return or Insurers will focus on ILPs and train their agents how to con and cheat the buying public, especially with regular ILP products.
It is a good year in fact. It is cleaning up year…clean up the salesmen and conmen and women. I can foresee at least 40% of the sales force leaving the industry. The ratio of sales people to customers is too high…there is ‘over population’ in the insurance indutry. It is timely to weed out or to put it more nicely to deploy these ‘retrenched insurance agents’ to the industries where their ‘conning’ skill is ethically used without hurting the financial life of the public.These salesmen should start looking for jobs now. Opportunities abound for security guards, fastfood joints looking for dishwashers, toilet cleaners and not forgetting our estates need more sweepers, garbage chute cleaners without having to rely on ‘foreign talents. We have our local talents released from the insurance industry.
With direct channels, web aggregator, balanced score card and more crappy par products in 2015 a new breed of true blue financial advisers will emerge.. So it is boon and not a bane. While MAS must be congratulated for taking these bold steps of protecting the consumers , it is just the beginning and more tightening needs to be done in enforcement.