facebookHi Seedly Community! I would like to find out if AXA term protector or Aviva MultiPay CI plan policy is better? Both are term plans up to 75 years old. Up to the layer 2 of Aviva Multipay, both also? - Seedly

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Anonymous

16 Nov 2020

Insurance

Hi Seedly Community! I would like to find out if AXA term protector or Aviva MultiPay CI plan policy is better? Both are term plans up to 75 years old. Up to the layer 2 of Aviva Multipay, both also?

Pay out to $300K max for early CI and severe CI. The main difference for Aviva multipay seems to be that it’s for recurrent CI, but there’s a waiting period of 2 years. Please let me know if there’s any compelling reasons for either policy! Thank you!

Discussion (4)

What are your thoughts?

Elijah Lee

Elijah Lee

22 Aug 2020

Level 18·Independent Financial Advisor at Phillip Securities (Jurong East)

Hi anon,

Both plans are vastly different.

AXA's term protector is a term plan and the purpose is to cover death and TPD. Covering CI and early CI via this plan is done via adding of relevant riders. Also, such riders are accelerated riders, meaning that the payout from such riders will reduce the remaining possible payout from your death/TPD portion.

Aviva's multipay plan is, as the name suggests, a multipay plan that pays in event of CI. Death and TPD coverage will not be the focus here (indeed, the death benefit is only $5K, which is negligible, even out CPF DPS pays more than that). This is primarily use to cover CI, but it has a payout structure comprising of 4 layers and various 'pots'. The product brochure can illustrate this further.

Both plans serve different purpose, but both have similar features:

  • You have to pay premiums for the duration of the plan if there is no claim

  • There is no cash value

You would take AXA if you were looking for cost effective death/TPD cover, and Aviva if your focus was CI coverage with the ability to claim again. However, do compare with other insurers to get a complete pictures as many insurers also carry vanilla term plans and multi pay plans.

Hey there!

It's hard to compare whats better and not since both are different products.

AXA term protector is, as the name suggests, a term plan. Term plans are very straight forward and great for covering essential working years. It offers a one time payout whereby the plan terminates upon payout. Aviva Multipay CI plan offers multiple claims for different stages. Once you have claimed for Layer 2, you will not be able to claim for Layer 1 anymore. In the case of Layer 1, do note that you are only able to claim twice for the early and intermediate stages and the claims are subjected to the pot categorization and it's premium waiver function comes into effect for severe stage CI only. You have to look very closely at the caveats of the different stages for claims and see if you're comfortable with it before committing to it. Also, most CI plans have a waiting period for relapsable CIs in general.

Multi-pay CI plans are great if you are looking at ensuring comprehensive coverage for coverage for relapses and different CI occurrences. Some CI plans even offer pre-early benefits. AIA Power Critical Cover.

You will have to consult a licensed financial advisor to explore your options. All the best! Financial planning is an integral part of life. You can reach me here to find out more.​​​

Since August, there has been a change of CI definitions industry-wide, and also an update to Aviva's...

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