Tokio Marine #GoClassic offers high potential returns and flexibility with a shorter Minimum Investment Period (MIP). However, it has high fees and minimum investment amounts, making it less accessible for some. Ideal for those seeking robust growth but be mindful of associated costs.
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If you’re interested to know the break down of what the Tokio Marine #GoClassic offers, click here.
Offers high potential returns with a calculated ROI of 458.76% over 30 years.
High fees, with 6.75% per annum during the Minimum Investment Period (MIP) and 1.35% per annum thereafter.
Provides significant flexibility, including premium holidays, unlimited fund switches, and a range of riders.
- High potential returns
- Flexible premium and investment options
- Shorter Minimum Investment Period (MIP)
- Direct investments in unit trusts
- High fees and charges
- High minimum investment amounts
VERDICT:
The Tokio Marine GoClassic is an attractive option for investors seeking high returns and flexibility.
The policy’s shorter Minimum Investment Period (MIP) of just 5 years makes it more accessible for those who prefer not to commit long-term.
Additionally, the flexibility to take premium holidays, make unlimited fund switches, and the availability of various riders enhance its appeal.
Direct investments in unit trusts and AI funds further add to its attractiveness by ensuring transparency and reducing hidden fees.
However, the high fees and minimum investment amounts are significant drawbacks.
The high minimum premium of $630/month also limits its accessibility to wealthier investors.
It’s best suited for investors who are willing to commit to higher initial costs in exchange for the potential for significant returns and flexible investment options.
What we like about the Tokio Marine #GoClassic
High Potential Returns
When it comes to investment-linked policies (ILPs), one of the primary goals is to achieve high returns.
The Tokio Marine #GoClassic ILP stands out in this regard, offering a significant potential ROI.
According to Dollar Bureau, this policy delivers an impressive 458.76% return over 30 years, which is among the highest in the market.
This makes it an attractive option for investors who are focused on maximising their investment outcomes.
- ROI of 458.76% over 30 years: This high return is a key selling point, ensuring your investments grow substantially over time.
- Competitive Edge: Compared to other ILPs, the returns from Tokio Marine #GoClassic are significantly higher, making it a top choice for those seeking robust growth
Flexibility
Flexibility is crucial when choosing an ILP, and the Tokio Marine #GoClassic excels in this area.
The ability to adjust your investments according to your financial situation is a significant advantage.
This policy offers various flexible options, ensuring it can adapt to your changing needs.
- Unlimited Fund Switches: This feature allows you to adjust your investment portfolio without any restrictions, helping you respond to market changes effectively.
- Low Minimums for Withdrawals and Top-ups: This ensures that you can access or add funds as needed, providing financial liquidity and control.
- Premium Holidays: After the first 2 years, you can take premium holidays, offering relief during financial difficulties without lapsing your policy.
- Variable Premiums: The policy allows you to vary your premiums, making it easier to manage your finances and adjust your investment strategy over time.
Shorter Minimum Investment Period (MIP)
A shorter MIP is a significant advantage for investors who are not willing to commit for extended periods.
The Tokio Marine #GoClassic ILP offers a minimum investment period starting from just 5 years, making it more accessible and less daunting for potential investors.
- 5-Year MIP: The shorter commitment period makes it easier for individuals to start investing without feeling locked in for decades.
- Multiple Commitment Periods: The policy offers various commitment periods, allowing you to choose one that fits your financial goals and timelines.
- Accessibility: This feature lowers the entry barrier for many investors who might be hesitant about long-term commitments, making it an attractive option for a broader audience.
Direct Investments in Funds
Investing directly in funds rather than through insurer subfunds can significantly reduce hidden fees and improve transparency.
The Tokio Marine #GoClassic ILP allows for direct investments in unit trusts, which is a major benefit.
- No Hidden Fees: Direct investment in unit trusts means you avoid the additional layers of hidden fees often associated with insurer subfunds.
- Accredited Investor Funds: Some of the funds offered by the Tokio Marine #GoClassic are accredited investor funds, traditionally having higher potential returns than retail funds.
- Better Performance: These typically yield better returns due to lower fee structures and higher potential returns, enhancing the overall growth of your investment portfolio.
What we think the Tokio Marine #GoClassic could do better
High Fees & Charges
One significant drawback of the Tokio Marine #GoClassic is its high fees and charges, which can erode potential returns.
While the policy offers high potential returns, the associated costs are considerably steep, particularly during the Minimum Investment Period (MIP).
- 6.75% per annum during MIP: This high annual fee can significantly reduce the net returns, especially in the initial years when your investment is still growing.
- 1.35% per annum after MIP: Although lower than the MIP fee, this ongoing charge remains relatively high compared to other ILPs.
- Additional Policy Charges: There are various other charges associated with maintaining the policy, which add to the overall cost burden for the investor.
These high fees and charges can impact the overall profitability of the investment, making it less attractive for those who are sensitive to cost and looking to maximise their returns.
High Minimum Investment Amounts
Another aspect of the Tokio Marine GoClassic that I find unfavourable is the high minimum investment amounts.
The required premiums are significantly higher compared to other ILPs, making it less accessible for many potential investors.
- $630/month minimum premium: This high minimum premium can be a barrier for many individuals who are unable or unwilling to commit to such a large monthly investment.
- Initial Financial Burden: The substantial initial investment required can be daunting, especially for those new to investing or with limited disposable income.
- Limited Accessibility: High minimum investment amounts restrict this policy to wealthier individuals, excluding a large segment of potential investors who might benefit from a more affordable entry point.
These high minimum investment requirements make the Tokio Marine #GoClassic less inclusive and more challenging for average investors to participate in, limiting its appeal and practical application for a broader audience.
Better alternatives to the Tokio Marine #GoClassic
Manulife InvestReady III
The Manulife InvestReady III stands out as a superior alternative to the Tokio Marine #GoClassic due to its lower fees, flexible investment periods, and high potential returns.
Firstly, the fees for Manulife InvestReady III are among the lowest in the market.
During the Minimum Investment Period (MIP), the fees range from 1.4% to 2.5% per annum, dropping to 0.7% to 1% per annum after the MIP.
This significantly lower fee structure helps investors retain more of their returns, enhancing overall profitability.
Additionally, the policy offers exceptional flexibility with nine different commitment periods, starting from as short as 5 years.
This allows investors to choose a plan that best fits their financial goals and timelines.
The ability to adjust investment periods provides a tailored approach to investing, accommodating both short-term and long-term strategies.
This transparency and cost-efficiency ensure that more of the investor’s money is working directly towards generating returns.
Furthermore, Manulife InvestReady III includes options for monthly dividend payouts, which can be either cashed out or reinvested, providing additional financial flexibility and potential income streams.
FWD Invest First Plus
FWD Invest First Plus is highly regarded for its low fees, high potential returns, and flexible investment options.
The fee structure of FWD Invest First Plus is particularly notable for its cost-effectiveness.
Unlike other ILPs that charge based on the total account value, this policy bases its fees on annualised premiums.
This approach significantly lowers the overall cost, ensuring that more of the investor’s money is allocated towards generating returns.
The policy’s initial fees range from 1% to 1.8%, with a policy charge kicking in after 2 years.
This structure keeps the fees minimal and predictable.
In terms of returns, FWD Invest First Plus boasts the highest potential returns among the ILPs reviewed, with a calculated ROI of 542% over 30 years.
This high return potential is a significant draw for investors looking to maximise their investment outcomes.
Flexibility is another strong point for this ILP.
The policy allows for premium holidays after 5 years, and investors can make partial withdrawals and top-ups as needed.
This flexibility ensures that the policy can adapt to the investor’s changing financial needs and circumstances.
Singlife Savvy Invest
Singlife Savvy Invest is another excellent alternative, praised for its low fees, flexible premiums, and high potential returns.
One of the primary advantages is its shorter Minimum Investment Period (MIP) of just 3 years, which is considerably shorter than many other ILPs.
This shorter commitment period makes it accessible to those who are hesitant about long-term investments, providing greater flexibility and financial freedom.
The fee structure is also highly competitive.
For the first 10 years, the policy charges 2.5% of the account value per year, which then drops to 0.65% per annum.
This reduction in fees over time allows for better net returns and makes the policy cost-effective in the long run.
Singlife Savvy Invest also permits adjustments to premiums after the initial 3 years, enabling investors to increase or decrease their contributions based on their financial situation.
This flexibility is crucial for adapting to changing financial circumstances and goals.
Let Us Compare Policies For You
When considering investment-linked policies (ILPs), it’s essential to evaluate the overall flexibility offered by the features, as these policies are long-term commitments.
Pay close attention to the total fees involved and the growth potential of the funds, especially when considering fund-level fees and ILP-level fees.
It’s worth noting that some funds report their returns without including these fees, while others do.
This is why it’s crucial to deeply understand what you’re purchasing.
Our partners are well-trained and have years of experience in this field, ensuring that they can help you navigate these complexities.
They can assist in comparing policies, ensuring that all aspects are considered, including the suitability of the policy based on your current situation and future goals.
We offer a free, non-obligatory comparison session where we help you obtain and compare quotes.
This session is designed to provide you with a clear understanding of the best options available, tailored to your specific needs.
Reach out to us, and let us help you make an informed decision.