Hi I'm thinking of getting a ECI and CI plan, any advice?

Hi anon,

The plans work very differently.

The group plans are

• Term plans with max cover till 70 (in reality, I doubt anyone will hold them past 65)

• With increasing premiums over age bands. Total premiums may be high once you add up over the entire span of the plan

• Giving you lump sum payouts

• Coverage definitions may change upon renewal (like this year)

• Don't cover that many conditions (Living Care plus has only 10 early CI if I recall)

Individual plans like what you have mentioned are

• Also term plans, but have a more customizable duration of coverage (they can go up to age 100)

• Premiums are level at point of entry (not guaranteed however)

• Pay out in lump sum, but after a certain waiting period or criteria, you can claim again and again

• Coverage definitions will be locked in when you get the plan

• Cover a lot more conditions than the group plan

There's nothing wrong with the group term plan, but you need to understand its limitations. If you do not like those limitations, then having a personal plan is better for you (not to mention the customization that goes with it)

I am currently in my 20s and the total premiums of Aviva's MINDEF group CI up to age 65 is way more expensive than the total premiums of other CI riders from other term life insurance policies. If you are concerned about the premiums, please calculate the total premiums based on the table from Aviva's MINDEF group policy.

Aviva's MINDEF group ECI is much cheaper than other ECI policies when you are young, but I am not sure if it's still any much cheaper when you are older and in your 40's. Also, please note that the coverage is not the same. If I recall, Aviva's MINDEF group ECI has less coverage than an average ECI policy. Please check it out yourself.

As for whether you want a recurring policy, you need to first assess your own risks so that you do not get overprotected or under-protected. For example, assess your risks due to family e.g. if you have an immediate family member who has CI at an early age (insurance policies often ask for immediate family members who had CI before age 60), then you may need to be more careful. I have not explored the realms of DNA testing to figure out my risks.

On the other hand, you may invest in your health starting today! Eat healthily, keep fit! (This is what I do.) Then, your risks are so much lower and you may opt for non-recurring with peace of mind.

In addition, if you are concerned about "maximising" your recurring policy, I'm not sure if there is a substantial number of people who can survive so many CI in a lifetime...

Last but not least, after assessing your risks and needs, if you simply feel unsafe without extra/recurring coverage, then you may wish to consider the recurring policy... the main point of insurance is to have a peace of mind even when you become a liability to your loved ones, not for "earning" out of it.

All the best!​​​