For your whole life insurance death + TPD coverage, did you choose a plan with a low sum assured with high multiplier or high sum assured no multiplier? and why?

Hello! I chose a whole life plan + fully accelerated CI/ECI with low sum assured and highest multiplier to cover 5-7x income and an additional term life to cover death/TPD for 10x income.

I am not sure who else does this but my thinking was
1. I want CI coverage for life but do not want to pay during my retirement years.
2. In event I claim from CI, the amount would probably be used for me to cover ongoing treatment and enjoy my family time. This would mean my family would have close to nothing if I were to pass on and thus, I decided to take a term plan to cover death/TPD in case next time I can't take it up, but to cover till 70.

My partner, though, feels term plan is not worth due to no cash return if no claims made so he has two life plans, one from long ago and one recently. His investments are still yielding results but his view did not change lol.

I guess it depends on personal preferences and your school of thought to help you make an informed decision!

Hey there!

Everything is all done within the context of a Client's Budget, objectives and needed coverage. A good coverage for death is 10x your annual income and 5x annual income for CI coverage. The multiplier hence works well to balance that needs and Budget.

A high multiplier focuses on protection while dialing down to a very Low Base coverage upon retirement while a lower multiplier focuses on accumulating higher cash value for retirement which explains why lower multipliers are more expensive.

So if your objective is for boosted protection during your working years, you should be opting for a higher multiplier. The savings in premiums can be deployed somewhere eg. Investments etc

That being said, life plans shouldn't be your main and only mode of leaving behind a legacy in your latter years (with its base coverage) and neither should it be a way of accumulating wealth. If anything, the cash value is there to offset the premiums you've paid and provide maybe a little more to support retirement.

Financial planning is an integral part of life. You can reach me here to find out more.​​​