Hi I wants to change my critical illness whole life plan from GE I bought to a CI multipay but is it a good decision? I will not get back any money for surrender but I am scared of multiple illness

Hi anon,

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Multipay critical illness plans do have their pros (and cons), but then again, which plan doesn't?

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You have correctly pointed out that you won't be getting back anything as MPCI plans are term plans which have no cash value.

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The questions you will need to ask yourself are

1. How important is it that you have coverage for a potential relapse of a CI?
2. How long have you had your WL CI plan from GE?

Your circumstances will be unique to you and that should let you guide your decision.

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Personally, I have a MPCI plan myself as I believe that with improvements in medical technology, there's a relatively reasonable chance that I'll survive a CI. The question will be, if I survive that CI, then I'm still alive and that means I could potentially get another CI down the road, and am I prepared for that?

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Of course, if I don't survive, then that's that. And yes, while MPCI premiums are higher than a single payout term CI plan, that's just how it works, I'm willing to pay that slight increase in premiums to manage the risk that I may survive a CI and then suffer another CI down the road, even if I may only claim once or even never.

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However, I'm of the view that if I get a CI in my late 70s or 80s, there's not a lot of chance of surviving that. So my own MPCI plan doesn't cover me all the way to age 99. I'll use a Whole Life for that stage of my life, and that one single claim that I hopefully never have to make, will be the last claim, because I don't think I'm going to be surviving cancer in my 80s.

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So yes, I do have both WL and MPCI plans for CI. To add to that, my MPCI payout is sized similar to the same amount as I would have gotten on a single payout term CI plan if MPCI plans didn't exist. The premium wasn't drastically more than single payout term CI in my view.

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So I wouldn't say your WL plan is obsolete. Neither is MPCI irrelevant to your needs. Ask yourself what you are looking for, and you will know what type of coverage will address your fears.

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Just my two cents, even if you have made your decision already. Good luck!

Hi there,

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Multi claims CI policy are not something i would normally advocate due to the chances of the multi claims to happen is low ( not impossible if you have a family history of illness )

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It is what i consider a Luxury plan. If you get a multipay policy, chances of getting every dollar of coverage you pay for is lower as compared to a single lumpsum CI policy.

If an individual gets a multipay plan and the first CI already took him/her out, the expensive premium will go down the drain...

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If CI does happen, best chance of survival would be the first few years. It is important to have adequate lumpsum coverage to seek treatment.

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If you get a Multipay plan because of its multipay feature, for it to have sufficient payout to go for treatment on every payout, it will be extremely pricy. you will need to consider your cashflow on affordability

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If faced with CI somewhere down the road you need to make sure you have sufficient to go for treatment

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If cashflow and affordability is not an issue, then yes you can consider getting a multipay. But do ensure that every payout is sufficient for treatment.

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I would suggest looking at a lumpsum CI payout because think about it, would you rather get a lumpsum at your first CI? or get multiple CI in order to get whatever you're covered.

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Personally i would rather get everything at 1 go, but of course best if i wont ever get that payout and live healthily til a ripe old age.

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Hope this is able to put things into perspective.

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Cheers!

Isaac Tan

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