Harvest Builder@Future, is a regular premium investment-linked insurance policy from Tokio Marine Life Insurance Singapore. Review the policy that offers wealth accumulation through investment in curated funds, enhanced with bonuses such as an initial bonus and loyalty rewards.

Harvest Builder@Future has key features and benefits worth elaborating:

• Investment and Bonuses:
  • Initial Bonus of up to 20% of regular premiums paid in the first policy year.
  • Premium Bonus, which can increase up to 0.15% of the Accumulation Units Account value after continuing to pay regular premiums after the 5th policy year.
  • Power-up Bonus of 1.3% of the Accumulation Units Account value at the end of the 10th policy year.
  • Loyalty Bonus of 0.5% of the Accumulation Units Account value at the end of each policy year, starting from the end of the 11th policy year.
  • 100% of regular premiums are invested.
• Flexibility:
  • Multiple Currencies: Offers up to 5 currencies to invest in, including SGD, AUD, GBP, EUR, and USD.
  • Fund Switching: Flexibility in fund switches.
  • Top-ups: Option for top-ups, including recurring single premiums, after the first year.
  • Partial Withdrawals: Ability to make partial withdrawals.
  • Life Assureds: Option to include up to 4 life assured.
  • Dividend Options: Potential to receive dividend income or reinvest dividends.
• Protection:
  • Advanced Death Benefit: Capital guarantee upon death during the Minimum Investment Period (MIP).
  • Optional Riders: A variety of optional riders are available to enhance protection against unforeseen circumstances.
• Other Features:
  • No Medical Underwriting: Easy application process with no medical check-ups required.

Harvest Builder@Future has the following noteworthy considerations:

• Target Market:
  • Not suitable for individuals seeking guaranteed returns or a single premium plan.
  • Not suitable for those seeking high insurance coverage.
• Minimum Investment Period (MIP): The MIP is 10 years. Surrendering the policy before the end of the MIP may incur surrender charges.
• Charges and Fees:
  • The policy includes several charges, such as policy charges, premium charges for recurring single premium and top-up, monthly protection charges, surrender charges, partial withdrawal charges and premium shortfall charges.
  • Optional Advisory Service Fees may apply.
• Premium Payment:
  • Failure to pay regular premiums within the first 2 years can lead to automatic policy termination.
  • Premium Shortfall Charges apply if regular premiums are missed during policy years 3 to 5.
• Bonuses:
  • TMLS (Tokio Marine Life Insurance Singapore Ltd) can vary the bonus rates for the Initial Bonus, Loyalty Bonus, Power-up Bonus, and Premium Bonus.
• Partial Withdrawals:
  • Partial withdrawals are not allowed during the first two policy years.
• Policy Currency:
  • Changing the policy currency is only allowed after the Minimum Investment Period.

Harvest Builder@Future does have a use case example:

Primarily Long-Term Wealth Accumulation and Legacy Planning Purposes.

• Client Profile:
  • Name: Mrs. Emily Tan
  • Age: 35 years old
  • Occupation: Marketing Manager
  • Financial Goals:
    • Accumulate wealth over the long term for retirement.
    • Create a legacy for her two children.
    • Desires flexibility in managing investments.
    • Seeks some protection benefits.
  • Risk Appetite: Moderate
• Needs Analysis:
  • Emily is looking for a plan that offers potential investment returns while providing the flexibility to adapt to changing life circumstances.
  • She wants to invest in a range of investment-linked funds to grow her wealth.
  • Emily also wants to ensure her children are financially protected in the event of her death.
• Solution: Harvest Builder@Future
  • Emily chooses Harvest Builder@Future to meet her long-term financial goals and legacy planning needs.
• Key Benefits for Emily:
  • Investment and Bonuses:
    • Initial Bonus: Emily benefits from an initial bonus of up to 20% on her first-year regular premiums, which boosts her initial investment.
    • Loyalty Bonus: Starting from the end of policy year 11, Emily will receive a loyalty bonus of 0.5% of the Accumulation Units Account value annually.
  • Flexibility:
    • Currency Choice: Emily can invest in SGD, providing her ease of mind.
    • Fund Switching: Emily has the flexibility to switch between different investment-linked funds based on her risk appetite and market conditions.
    • Top-ups: After the first year, Emily can make top-up premiums to further boost her investment.
    • Life Replacement Option: Emily appreciates the option to add or change life assureds, allowing her to pass the policy to her children in the future.
  • Protection:
    • Advanced Death Benefit: During the Minimum Investment Period, Emily chooses the Advanced Death Benefit option to ensure that her beneficiaries receive the higher of 101% of the Accumulation Units Account Value or the total amount of regular premiums paid less any withdrawals, plus the Top-up Units Account value.
    • Riders: Emily adds the Waiver of Premium Rider to ensure future premiums are waived if she is diagnosed with a major critical illness.
  • Wealth Accumulation:
    • Potential Investment Returns: Emily understands that the Harvest Builder@Future plan offers potential investment returns through a range of curated ILP sub-funds.
    • Premium Bonus: After policy year 5, Emily can enjoy a premium bonus that steps up to 0.15% of the Accumulation Units Account value, further enhancing her wealth accumulation.
• Financial Planning:
  • Regular Premiums: Emily commits to paying regular premiums to take full advantage of the bonuses and investment opportunities.
  • Investment Strategy: Emily works with her financial advisor to allocate her premiums across a diversified portfolio of investment-linked funds, aligning with her moderate risk appetite.
  • Long-Term Commitment: Emily acknowledges that Harvest Builder@Future is a long-term commitment and understands the potential costs associated with early termination.
• Outcome:
  • Emily successfully uses Harvest Builder@Future to accumulate wealth over the long term while enjoying the flexibility to manage her investments and protect her family.
  • The bonuses, including the Initial Bonus, Premium Bonus, Power-up Bonus, and Loyalty Bonus, help accelerate her wealth accumulation.
  • The Life Replacement Option ensures that her legacy can be passed on to her children, providing them with financial security.

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Some things to note. This review post will get dated. And the product might not be available for new subscriptions at some point. Hopefully this serves as reference for future policyholders who have forgotten what they have taken up.

There can be shifts in planning narratives over time. For example, limited premium tenures gain popularity over the years because people are less confident of their future earning capacity or sustainability of income levels. Regular payout features gained popularity when more and more people are in tune with the FIRE (Financial independence retire early) movement. An extended period of low interest rates brought down insurance products’ returns yield for policy holders, but now in a higher interest rates environment, things have changed.

Tokio Marine Harvest Builder@Future may or may not fit into your financial plans. Understand that there is no best plan for all time, but there is a method to objectively facilitate your decisions. Read more about it here.

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