CI coverage

Hi Yao Yuan,

If you switch to a term with CI rider, then you can still get CI coverage till age 75 if the base plan (the term) has a coverage duration till age 75.

I sense that you are concerned about CI coverage during retirement. I'd just like to post a question to you here: if you stuck with the standalone plan, would you be ok with it if a CI occured at age 76? Likewise, if you picked up a term till 65 with CI rider, would you be ok with it if a CI occured at age 66?

Think about whether your actual needs are to have CI cover throughout your retirement. In this case, a term plan might not be the best way to address your needs. Without a clear idea of what you are looking for, the wrong plan or plans may be implemented, which would not have the outcome you want.

Speak with an advisor in detail to get an idea of possible solutions. I hope you find one. Good luck!

In truth, there is no "formula" to determine which option is advisable. This is because everyone's needs are different. With this in mind, here is what I will suggest.

Objective

To begin with, go back to your objective to understand why you got the standalone Critical Illness plan in the first place. In detail, scrutinse every aspect of your decisioin making.

In like manner, evaluate why you are thinking of switching to a term plan with Critical Illness rider. If the only aspect is cost, then ask yourself - is it worth paying less premium for 10 years less in coverage?

Income Protection

Generally, insurance is a commonly used tool for income protection. In this case, do you need income protection beyond retirement (assuming you retire by age 65)?

More Details (Part 1.2 on why you need life insurance): 3 Types of Insurance Policies in Singapore

Financial Leverage

For the most part, I like to describe insurance as a tool to provide the financial leverage that you need but do not have. Under those circumstances, do you still require the payout beyond age 65? Or will you have assets and cash to "fall back onto"?

When you understand financial planning as a whole, you will realise that insurance is merely a small segment in wealth management. Overall, it is how you manage your finances to give you the peace of mind. When you are able to do so (either on your own or through professional help), you will have a clear answer on whether it is more sensible to cover till age 65 or age 75.

I share quality content on estate planning and financial planning here.