Tokio Marine Atlas Wealth Investment-Linked Policy (ILP) Review

Tokio Marine Atlas Wealth Investment-Linked Policy (ILP)
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Last Updated on by Tree of Wealth

The Tokio Marine Atlas Wealth is one of the most competitive Investment-Linked Policy (ILPs) in the market. It is matched with high start-up bonuses and loyalty bonus incentive with a limited pay premium term of 5 to 25 years with minimum 1 year of lock in period. It is poised to be a regular premium investment plan, best suited for mid to long term of investment time horizon.

It is also very flexible with the premium holidays (without any charges), has low charges to break-even and you get to invest 100% of your premiums right from the start.

The range of funds is also competitive in the market, including retail and Accredited Investor (AI) funds. Through TM Atlas Wealth, Accredited Investor funds are made available for non –AIs. This is huge as the returns are usually high for Accredited Investor funds. However it is important to note that the risk is higher too.

The TM Atlas Wealth can last a lifetime and with its high liquidity, premium holiday features and strong fund choices, making it a very versatile wealth growth investment instrument for retirement planning, children’s education, legacy planning or just for flexible withdrawals

Interested to learn more?

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Features At A Glance For TM Atlas Wealth

Initial Bonus

Receive up to 19.5% annually of the initial start-up bonus for 5 years. This helps to cushion the charges as well as amplifying your investments with the funds you choose.

Initial Bonus For Different Premium Terms

 

Annualised Regular Premium Band

Premium Payment Term (Years)
 5 – 9  10 – 14  15 – 19  20 – 24

 25

1

(Premiums < $12,000)

0.90% 2.50% 5.00% 6.00% 7.50%
2

(Premiums $12,000 to < $24,000)

1.50% 4.50% 6.50% 8.00%

10.00%

3

(Premiums $24,000 to < $36,000)

2.50% 6.00% 9.50% 11.00% 12.00%
4

(Premiums 36,000 to < $48,000)

3.00% 8.00% 11.50% 13.00%

14.00%

5

(Premiums >= $48,000)

3.50% 9.00% 13.00% 17.00%

19.50%

The initial bonus spread over 5 years will definitely accelerate your investments by enhancing the units for purchase by up to 19.5% per annum. This will total up to 97.5% of investment bonuses on top of your investment monies.

On top of that, there are annual loyalty bonuses of up to 0.3% per year of your total accumulated units in the account value after the 5 years of initial start-up bonuses.

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Tokio Marine Atlas Wealth Investment-Linked Policy (ILP)
source: Tokio Marine

Loyalty Bonus

While you continue to invest, the yearly loyalty bonus will be awarded to you of up to 0.3% per year of your total accumulated units in the account value after the 5 years of initial start-up bonuses. This starts from the 6th policy year.

“Total Accumulated Units” refers to the units purchased with regular single premium (RSP) from the 13th month of the commencement date, top-up premiums and loyalty bonus. This allows you to earn more bonuses as you accumulate more units.

Break Even Yield

The Beak Even yield table illustrates the interest needed to well, break even. 

 Annual growth required to cover the product charges 

Monthly Premium

SGD

Premium Payment Term

5 years

10 years 15 years 20 years 25 years
750 2.51% 1.77% 1.53% 1.44%

1.39%

1,500 2.32% 1.63% 1.49% 1.42%

1.37%

2,500

2.01% 1.52% 1.41% 1.38% 1.36%

3,500

1.85% 1.39% 1.36% 1.36%

1.35%

5,000 1.69% 1.32% 1.32% 1.31%

1.31%

Source: Tokio Marine

Choice of Currency Investment

TM Atlas Wealth is available in five major currencies(SGD, AUD, GBP, USD and EUR) so your investment does not have to come to a standstill as you pursue your career outside your country of domicile. You can choose to invest in either the currency you are currently earning or plan for your longer term needs. Designed for the mobile professional, TM Atlas Wealth gives you more flexibility to manage your wealth with applicable tax planning opportunities.

Source: Tokio Marine

Premium Payment Term

Have the choice to choose from 5 to 25 years, flexible to your preference for the number of years.

Minimum Recurring Single Premium

Payment Mode SGD/AUD/GBP/USD/EUR

Annual – 600

Half-yearly – 300

Quarterly – 150

Monthly – 50

Minimum Top-Up Premium

3,000 (SGD/AUD/GBP/USD/EUR)

Premium Payment Frequency and Size

Minimum Regular Premium

Payment Mode

SGD AUD GBP USD EUR
Annual 7,560 7,920 4,560 5,040

5,520

Half-yearly

3,780 3,960 2,280 2,520 2,760
Quarterly 1,890 1,980 1,140 1,260

1,380

Monthly 630 660 380 420

460

Minimum Recurring Single Premium

Payment Mode

SGD/AUD/GBP/USD/EUR

Annual

600
Half-yearly

300

Quarterly

150

Monthly

50

Minimum Top-Up Premium

3,000 (SGD/AUD/GBP/USD/EUR)

Source: Tokio Marine

Highly Flexible & Liquid

Tokio Marine (TM)’s Atlas Wealth is a highly flexible ILP that allows great diversification and customisation to suit into your concerns of growing of wealth, setting up retirement funding, preparing for children’s education and even starting a family or getting married.

Atlas Wealth’s high degree of liquidity is very useful in fitting into your budget with the ability to do partial withdrawal with no hidden charges, premium top-ups and premium holidays should you want to take a break on premiums payment.

Interested to learn more?

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Be Protected For Your Investments

Choose from 2 different Death Benefits: Advanced Death Benefit or Basic Death Benefit.

The Basic Death Benefit covers you got 101% of the value of your investment policy in the event of death.

The second type of Death Benefit is the Advanced Death Benefit and pays out the higher of:

  1. 101% of the value of your investment policy; or
  2. 100% (The Total Premiums paid) less off the total amount of the withdrawals made throughout (if any)

In the unfortunate event of death occurring during the premium contribution period, be assured that your investments are protected. As life is unpredictable, when death occurs when least expected, this is helpful in the event if the time of death meets when the market is dipping and not performing, the investment value is being protected.

You can also complement the protection by supplementing it with benefits (riders). These riders cover critical illness aspects as well as premium waiving, if required.

Also, no matter the supplementary rider benefits or death coverage chosen, there are no medical questions, examinations and medical history required, which leads to the next feature of the plan:

Guaranteed Issuance Option

Plan is guaranteed to be issued with no medical check-up/ underwriting

Access to Best-In-Class ILP Funds

  • Choose from a good range of pure investment funds for retail investors to accredited investor funds
  • Huge range of funds also includes equities and dividend paying funds, which allows you to create yet another stream of income.
  • 100% of your premiums go into investing

For a comprehensive list of funds, have a look here: Fund List

Supplementary Protection Riders to Enhance Your Protection

Protect against Early, Intermediates to Advance Stage Critical Illness (CI), including Cancer.

Early Critical Illness Premium Waiver Rider
In the event of the covered Early or Intermediate stage of CI (Critical Illness), future premiums will be waived for 5 years, up to a maximum of 2 times.

Cancer Waiver Rider
In the event of Advanced Stage Cancer being diagnosed, future premiums will be waived.

Waiver of Premium Rider
In the event of Advanced Stage Critical Illness being diagnosed, future premiums will be waived.

Payer Benefit Rider, Spouse Rider
In the event of Death or TPD (Total and Permanent Disability) for self or spouse, future premiums will be waived.

Enhanced Payer Benefit, Enhanced Spouse Rider
In the event of Death, TPD (Total and Permanent Disability) or diagnosis of the covered Critical Illness of the Advance Stage, future premiums will be waived. This is applicable to both the policy holder (self) and spouse.

Interested to learn more?

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HOW IT WORKS

 

Tokio Marine Atlas Wealth Investment-Linked Policy (ILP)

Tokio Marine Atlas Wealth Investment-Linked Policy (ILP)

Tokio Marine Atlas Wealth Investment-Linked Policy (ILP)
source: Tokio Marine

Why We Like The TM Atlas Wealth (Tokio Marine)

  • Most Flexible ILP: Only the 1st Year of Premium is locked in. Rest of the premium term is flexible and premium term is not locked in. Do note the charges will continue to come in, so paying for the premium to earn the start-up and loyalty bonus is adviced.
  • Shortest ILP Premium Plan at 5 years Policy Term
  • No Penalty Upon Withdrawal for subsequent year’s premium
  • Low Breakeven Yield for Shorter Term Commitment of 5 – 15 years
  • Minimum $630/month SGD to start
  • Protection and Premium waiver
  • Charges: 4% per annum (First year premium during Selected Payment Terms) + 1.5% per annum Policy Charge Throughout the Total AUM:

Fees & Charges

Initial Charge

4% p.a. of initial units account value

Policy Charge

1.50% p.a. of policy value
Premium Charge for Recurring Single Premium

(RSP) and Top-Up Premium

5% of each RSP and/or top-up premium

Monthly Protection Charge

Applicable for Advanced Death Benefit option only.

Calculated based on sum at risk

Withdrawal Charge

Nil

Change in Policy Currency Charge

Nil
Credit Card Charge

Waived for first premium payment.

For subsequent premium payments via credit card, a 1.60% charge will be imposed on each premium paid.

Fund Management Charge

Depends on the chosen investment fund

Fund Switching Charge

Nil

Surrender Charge

Applicable at any time prior to the end of the premium payment term

Wide Range of Entry Age

  • Entry Age (age next birthday) Life Assured: 1 month old – up to age 70
  • Policy Owner (Assured): Age 19 – 70

Multiple Lives Application

  • Up to 2 Policy Owners (Assured) and 4 Lives Assured

Wide Flexible Range of Premium Payment Term: 5 – 25 years

The TM Atlas Wealth Is Suitable If You Want:

  • Access to a range of strong retail funds as well as accredited investors funds
  • High flexibility of premium choices and top ups to your Investment-Linked Policy
  • Wide range of choices for currency to invest
  • High Start-up bonus to complement your investment journey
  • Strong Investment tool for legacy planning
  • Guaranteed Issuance plan without the need for medical check-up and underwriting
  • Premium holidays and minimum premium lock in period (1 year only)
  • Flexible premium term of 5 – 25 years

Interested to learn more?

Fill in the form below and we will get back to you!

It would however be less suitable if you would like:

  • Returns that are guaranteed
  • High protection coverage for Health, Death, TPD and Critical Illness from Early, Intermediate to Advanced stage
  • Single Premium Investment
  • Guaranteed returns to withdraw in the event of a downward market

Conclusion for TM Atlas Wealth ILP

The Tokio Marine (TM) Atlas Wealth is a strong Investment-Linked Policy (ILP) with competitive funds.

Are you considering investing in an ILP? As with all plans, Endowment, Whole life protection and Term plans, all Investment-Linked Policies have their own advantages and disadvantages. We recommend that all individuals choose their wealth growth instruments keeping in mind their objectives and liquidity needs to ensure they get the best possible value.

Let us do the homework and help you compare across the different retirement plans in the market to save you time. Drop us an inquiry below and our professional experienced licensed FA advisor will get in touch with you shortly upon your request.

Our financial consultants will use your input and preferences to draft proposals according to your needs to get you the best investment plan. Your information provided will only be used for communication.

Fill in the form below and our friendly licensed FA advisor will get in touch with you. Based on your needs, a custom made solution will be adjusted only addressing your concerns.

 

No obligations, no hidden fees. All advice are of no charges.

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