For those aged 25-30 who got their critical insurance recently, which one did you get and what factors affected your choice?

Initially I was deciding between aviva multipay and axa super criticare. Eventually I went ahead with a life plan with fully accelerated ECI and CI riders as I thought that I must be quite unlucky if I were to have to go through CI more than once. I think odds are quite low for now though there are claims that this may be increasing.

Then, I had a tough time deciding between another life plan (I already have a life plan paid for almost 10 years already) and a term plan. But I was thinking so hard on the age to decide on when to end the term plan. If end at 70 and I struck CI at 71, will I regret when my payout from my first life plan is low? Lol.. In any case, the life plan I bought had a small sum assured with the highest multiplier that my agent's insurer could offer me :) I was just looking to ensure I have at least $100k after age 70 if I struck CI.

What is Critical Illness Insurance about?

To begin with, you may wish to understand more about Critical Illness and the types of policies available on the market.

More Details: What is Critical Illness Insurance Singapore

Life Insurance Association Singapore (LIA) Critical Illness Framework

Next, you will realise that different insurers are able to provide different scope of coverage, e.g. cover for early stage Critical Illness. For the most part, some of these definitions for claim do not need to follow the LIA Critical Illness Framwork.

Here is why: Life Insurance Association Singapore (LIA) Critical Illness Framework 2020

General Guideline

Given that there are so many options available on the market, here is a general guideline:

1. Why do you need Critical Illness insurance coverage?

2. How much coverage do you need?

3. How long do you need the coverage for?

4. What are the options available?

5. Are you comfortable with the policy's terms and conditions?

Generally, LIA recommends you to have 5 times annual income as your Critical Illness insurance cover. Whether you need more or less depends on individual planning.

Which types of plan to go for?

Coincidentally, I answered a similar question on the type of plan to consider and you can read about my thoughts here: https://seedly.sg/questions/26-anb-currently-si...

Above all, my take is - keep insurance simple! After all, it is supposed to assist you as your backup plan, not override you as the main plan.

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