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20 Aug 2020


Critical Illness Insurance?

Is it better to have an insurance that offers recurrent multiple payouts (e.g. payout for early stage illness, late stage cancer etc) instead of an insurance that only allow one time payout or payout up to certain cap, even though the premium is a lot higher (E.g. AIA Power Critical Illness)?

Discussion (13)

What are your thoughts?

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In my opinion, is unquestionably crucial. There are various schools of thought regarding early CI; some may argue that it is treatable and won't significantly affect one's ability to earn money, at least not right away. However, if geometry dash lite is able to. Early CI or the multipay plans you mentioned are what I'll suggest.

I would rather insure enough to cover my critical years 30-65. After 65 years, can start to draw down from the investment I make since 30 years old. Imagine I DCA just $200/m to a S&P500 ETF, that would probably have a 10% annualised return and I can reap ~$400k when I am 65 years old.

Tan Pau Cen

20 Aug 2020

Financial Consultant at Prudential

I believe the answer is "it depends". It depends on your budget, your current age, your family history, do you have any dependants, how young or old are your dependants etc.

Older folks must pay higher premium for CI cover. So term plan with one time payout to cover during their productive year, might be more suitable in term of budget.

But, I always believe that one must have at least one whole life cover. For younger ones the whole life cover is quite affordable - and the premium does not change / increase by age band, once you start the policy. So for my children I get them whole life CI protection w/ ECI rider.

For female too, as they live longer, a whole life CI cover I believe will be more suitable, if budget permits.

Multipay plan - now for this, one must really read carefully. The T&C imposed for next claims, that must be understood properly.

Also do take note that some insurers impose max claimable limit which inclusive of all other policies issued by that company and other insurance companies; while some company only look at its own limit (i.e. industry limit vs own firm's limit).

Maximum claimable for ECI also have different T&C between insurers.

Make sure to read the fine lines before signing - or within the 14 days freelook period :)​​​

I think it is good to have a single payout one as a rider to a whole life and supplement with a multipay one. You should prioritise the single payout one first to ensure you have sufficient coverage.

I prefer an insurance that has a one time pay out but covers for life or up until the age of 60, whe...

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