Hi Sylvia,
Here are some pointers to guide you:
Aviva MPTP
Term plan, hence only covers you for a specified term
Payout amount is flat regardless of when you claim
Premium payment term is for the duration of the plan
Multi Pay rider can be added on top. Claims from this rider does not impact the main plan's benefit
Multi Pay rider duration can be customized
Once the plan ends, if you didn't make a claim, there will be no cash value
Aviva MWL3
Limited Payment Life Plan
Payouts from main plan includes the credited reversionary bonuses on top of the multiplier amount
The MultiPay rider premium term will follow that of the main plan (it will be limited pay as well)
The MultiPay rider only covers till either age 70 or 85 (i.e. fixed term)
The MultiPay rider has a good health reward where by at age 65 or 70, you will get 20% of the Sum Assured of the Multipay Rider if you have not made a claim yet
Your coverage continues after your premium payment period ends
Coverage amount of the main plan increases over time due to the bonuses
Now, to decide which plan might be better for you, you will have to know what is your purpose. It would seem that you are concerned about the possibility of having to claim multiple times, thus you can get yourself covered with a stand alone multi pay plan, or a multi pay rider added on to either the term plan or the life plan. You'll then have have to decide how long you want the coverage for. If you want the coverage to be in force beyond age 85, then probably only the standalone Multi Pay CI plan will suit you since it can cover till age 99. Thus this really depends on your requirements.
When considering which plan you should ultimately take up, you will want to consider the long term cost of the various permutations. For example, if you wanted to be able to claim till age 85, here are some possibilities:
Term plan with multi pay till 85
Whole Life with multi pay till 85 (bearing in mind that you will definitely get at least 20% of the Multipay sum assured back if you don't claim, and you still have coverage after age 85)
Standalone multi pay till 85
An advisor should work out the total costs of these for you in order for you to make an informed decision. Bearing in mind that you may have other coverage needs (e.g. you need death cover for liabilities, thus you would want to get a term plan anyway)
Throw in the current perpetual discount on the MPTP (20% or 5%, depending on which rider you add) and the maths adds up.
As you can see, it is not a simple decision to make. For me, I view CI coverage as something that I would like to have for life, thus a limited payment whole life plan will suit me if I do not have any form of CI cover yet. Then, a multipay plan (seperately) can be added on to boost my cover till before age 70/85 (as an example) if I want to. Again, the maths needs to be done to see if this makes sense, vs just adding a multi pay rider on the life plan.
You'll want to sit down and discuss with an advisor at length. Purchasing CI cover is a long term commitment and you want to make sure you have considered as many factors before committing.
Hi Sylvia,
Here are some pointers to guide you:
Aviva MPTP
Term plan, hence only covers you for a specified term
Payout amount is flat regardless of when you claim
Premium payment term is for the duration of the plan
Multi Pay rider can be added on top. Claims from this rider does not impact the main plan's benefit
Multi Pay rider duration can be customized
Once the plan ends, if you didn't make a claim, there will be no cash value
Aviva MWL3
Limited Payment Life Plan
Payouts from main plan includes the credited reversionary bonuses on top of the multiplier amount
The MultiPay rider premium term will follow that of the main plan (it will be limited pay as well)
The MultiPay rider only covers till either age 70 or 85 (i.e. fixed term)
The MultiPay rider has a good health reward where by at age 65 or 70, you will get 20% of the Sum Assured of the Multipay Rider if you have not made a claim yet
Your coverage continues after your premium payment period ends
Coverage amount of the main plan increases over time due to the bonuses
Now, to decide which plan might be better for you, you will have to know what is your purpose. It would seem that you are concerned about the possibility of having to claim multiple times, thus you can get yourself covered with a stand alone multi pay plan, or a multi pay rider added on to either the term plan or the life plan. You'll then have have to decide how long you want the coverage for. If you want the coverage to be in force beyond age 85, then probably only the standalone Multi Pay CI plan will suit you since it can cover till age 99. Thus this really depends on your requirements.
When considering which plan you should ultimately take up, you will want to consider the long term cost of the various permutations. For example, if you wanted to be able to claim till age 85, here are some possibilities:
Term plan with multi pay till 85
Whole Life with multi pay till 85 (bearing in mind that you will definitely get at least 20% of the Multipay sum assured back if you don't claim, and you still have coverage after age 85)
Standalone multi pay till 85
An advisor should work out the total costs of these for you in order for you to make an informed decision. Bearing in mind that you may have other coverage needs (e.g. you need death cover for liabilities, thus you would want to get a term plan anyway)
Throw in the current perpetual discount on the MPTP (20% or 5%, depending on which rider you add) and the maths adds up.
As you can see, it is not a simple decision to make. For me, I view CI coverage as something that I would like to have for life, thus a limited payment whole life plan will suit me if I do not have any form of CI cover yet. Then, a multipay plan (seperately) can be added on to boost my cover till before age 70/85 (as an example) if I want to. Again, the maths needs to be done to see if this makes sense, vs just adding a multi pay rider on the life plan.
You'll want to sit down and discuss with an advisor at length. Purchasing CI cover is a long term commitment and you want to make sure you have considered as many factors before committing.