Seth’s Blog on Finance

TM Legacy Plus Revision

That was quick – mere weeks after Aviva launched its whole life policy, Tokio Marine has announced revisions to its flagship policy – TM Legacy Plus.

The biggest change would probably be the upgrade in the Minimum Benefit, or Minimum Protection Value, which I have touched on before. The MB factor used to be 2.5 for people 24 years and below, meaning a $100,000 policy will cover the person for $250,000. It was 2.0 for someone between 25 to 29, 1.8 between 30 – 34 and decreases for people in older age groups.

The revision will increase the MB factors across the board, bringing it to 2.5 for entry ages of 1 to 31. Furthermore, the Minimum Benefit span until age 70 next birthday instead of 65.

A negative clause on congential illnesses is also removed.

With the increased protection offered by the enhanced Minimum Benefit, premiums have also increased, the magnitude depending on the profile of the person.

The new plan will be offered starting from tomorrow, 14^th October 2011, and the old plan will be offered until the end of this month latest. I will be doing an analysis for my clients in due course.