Advertisement
Anonymous
I'm healthy, 26F, non-smoker and was recommended to get CI insurance. My FA suggests for me to purchase AIA Power Critical Cover and one whole life insurance with early CI rider but I think there is too much emphasis on early CI for me. I wish to compare it with plans from other companies. What are the major points that I should keep a look out for?
4
Discussion (4)
Learn how to style your text
Reply
Save
Elijah Lee
18 Jul 2020
Senior Financial Services Manager at Phillip Securities (Jurong East)
Hi anon,
You have to first understand the differences between a multi pay plan and a whole life with early CI rider.
Let's talk about the whole life with early CI rider first.
You coverage will usually be boosted by a multiplier till a certain age
Payment duration will be limited
Your coverage after the multiplier ends will increase in tandem with cash bonuses
For the multi pay plans in general
You will have to pay for the entire duration of the plan
If you claim, you may have your premiums waived, depending on whether you added a rider or if such a feature is build into the plan
Payout is a fixed amount each time depending on your sum assured
Now, no one will ever say that they bought too much insurance if they claim, but before a claim happens, you have to pay premiums. Thus, you need to strike a balance between coverage and premiums. I personally would want a mixture of both early and late stage coverage to ensure a decent quantum of cover, while having manageable premiums.
To compare whole of life plans, you can consider these points
Coverage in terms of covered conditions
Premiums
Payout structure
To compare multipay plans is alot harder, as they are all quite different from each other. However you may consider premiums and the payout structure to see which you prefer. To really extract maximum 'benefit' from a multipay plan is to claim multiple times, and is not something that anyone would want.
I'd suggest focusing on the whole life plan first, with probably a mix of early CI and late CI riders, and then adding on a separate amount on multi pay till age 70/75 as multipay plans will definitely payout for early CI. If budget doesn't permit, at least go for the whole life.
Reply
Save
Nigel Tan
18 Jul 2020
Executive Senior Financial Planner at Great Eastern Life
Ask around and get a feel of the market. No one can really decide what plan suits you better other t...
Read 2 other comments with a Seedly account
You will also enjoy exclusive benefits and get access to members only features.
Sign up or login with an email here
Write your thoughts
Related Articles
Related Posts
Related Posts
Advertisement
If you have the budget, Early CI should be considered. If you do not, focus on getting Major CI. Do not expect to claim from your CI plan if you have a minor illness however, the claim criteria has high watermarks.
Choose your doctor first, hospital second.