Do you recommend to buy the CI multi claim policy for adults and kids? Which insurer is better?

There are always arguments against Multi-Pay CI or Single-Pay CI because both have its pros and cons and you as a consumer should be glad that there are options for you to decide which is more to your needs.

For Multi-Pay CI, like what the others had shared, it ensures that you are still covered after the first claim so in case of a CI recurrence, at least you are still covered. Of course, some may argue against the probability of one making multiple CI claims, but there are still such cases. One can be diagnosed with an early cancer and recovered and 10 or 15 years down the road, be diagnosed again for stroke or heart attack. Of course, there are still terms and conditions for the subsequent CI claims.

Compared to buying a Single-Pay CI with a large sum assured, firstly buying a large sum assured can be equally as expensive also if it includes ECI. Secondly, if there is a CI claim, you will most likely be dependent on the payout for the rest of your life, it will be almost impossible for you to get another CI plan after that. There is also no guarantee that there will still be any leftover from the payout received when a CI recurrence occurs many years down the road.

No matter what, a CI plan is usually use as a form of income replacement in case of a illness. I would suggest you to just get an Income Protection plan that covers your current monthly income. It covers your monthly income as long as you are unable to work due to an Illness or Injury that results in a loss or reduction in income, up till your retirement age.

So in the case of a CI, firstly your IPs plan will cover for all the treatment costs and hospital bills and Income Protection plan will payout the monthly income loss while recovering from the CI. Income Protection plan can be alot cheaper than a CI plan.

For your kids, I would recommend you getting a Multi-Pay CI for them since they are still young, the premium will be cheaper.

Feel free to contact me (email at bio) if you are interested to know more about Income Protection plan.

Cheers.

There is no one-size-fits-all answer to this question. Instead, it works more towards comprehensive financial planning and how to create a portfolio that you are comfortable with for the long-term. Let me explain.

To begin with, let's understand a single-pay policy for Critical Illness coverage. Generally, you will pay the premium and in the event of a covered condition, the insurer will issue a payout and the plan will be terminated - straightforward in terms of the flow of the plan.

Despite that, such plans raise a point on future insurability interest. According to various studies, consumers (who have made a Critical Illness claim before) are concerned about the future cost of living as they are unlikely to be insured at the same level as before.

With this in mind, this is when a multi-pay policy for Critical Illness comes into place. In brief, you are likely to remained insured under the same policy after the first claim. While this resolves the above-mentioned problem on insurability interest, you should be expected to pay a higher premium to that end. What's more, what if there is no second Critical Illness? In this case, it may feels like you are overpaying for insurance coverage to this end.

Nevertheless, such policies should not be underrated. To clarify, it is all about striking a balance between the premium (money that you pay) and the coverage that you get in return. Thereupon, it will give you the peace of mind that you need, while ensuring that you are not overpaying for insurance coverage.

More Details about Critical Illness Insurance and the types of coverage: What is Critical Illness Insurance Singapore

As to which insurer is better, there is no single answer again. This is because the Life Insurance Association Singapore (LIA) mandates a limited list of conditions at the severe stage only.

More Details: Life Insurance Association Singapore (LIA) Critical Illness Framework 2020

In other words, this means that the respective insurers have the freedom to define the number of conditions to cover, as well as the definition for claims for the conditions outside the LIA Critical Illness framework. Therefore, the onus will be on you to ensure that you are paying for coverage that you are expected to get.

Generally, all my clients prefer to work with an insurer that provides a broader definition for claim. After all, we buy insurance to take care of us, and not for us to fight the technical jargon. (You may find one such example in the post about the Life Insurance Association Singapore's Critical Illness Framework.)

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