facebookI have a whole life plan from young (about 23years now) but i have to pay $600+ yearly and the coverage is $25k for death and $15k for CI. I need to pay this for life. Is this plan still competitive? - Seedly

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Anonymous

19 Nov 2020

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Insurance

I have a whole life plan from young (about 23years now) but i have to pay $600+ yearly and the coverage is $25k for death and $15k for CI. I need to pay this for life. Is this plan still competitive?

Cash value at 50 is around $28k. should i withdraw and get another whole life plan that is more competitive?

Discussion (3)

What are your thoughts?

Hey there!

It really depends on your life stage, eg. what are your liabilities, dependents etc.

The competitiveness of the plan is really matched to what you really need. You might have to ask yourself some questions.

  • How much do I want to leave behind for my children/partner?

  • Do I have enough lump sum to cover for liabilities in the event of my passing?

  • Will my CI payout be sufficient to cover my income in the event I'm unable to work due to CI and pay off medication, treatment etc

In general, sufficient CI coverage should range from 3-5 years of your annual income to cover for lost working years if you need a guage. I'll suggest you talk to a financial advisor to explore your options and see what is needed at your current stage of life.

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

Nigel Tan

Nigel Tan

19 Nov 2020

Level 7Β·Executive Senior Financial Planner at Great Eastern Life

In terms of claims, GE and Aviva both first pay a lump sum of 3 months benefit upon the diagnosis of 1 ADL and the premiums are subsequently waived off through the term.

As for claiming under 2 ADLs, the lump sum will pay as well On top of the monthly benefit after the usual 90 day waiting period.

It is always a good idea to upgrade as most people aren't usually prepared for long term disability. Sure, we may have critical illness pay outs here and there but eventually it may run out as well.

Hi Anon,

It is difficult to give accurate advice because of the lack of details, but there are some...

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