I have term plan PruVantage which I bought with my home mortgage loan, it doesn’t cover CI?

Hi Mr Gambhir,

PRUTerm Vantage is a term policy, which you are aware of, which was purchased to cover your outstanding mortgage liability. It traditionally does not have a CI component, unless you have opted for it at the point of purchase. A term policy does not have a cash value, but the premiums for your current policy should be quite affordable if the plan was done correctly.

If you are looking for a CI policy, you will need to analyze a few factors, such as your age, health before you can proceed with the application. Its very hard to suggest the best solution, with the absence of key information regarding your personal circumstance.

If you are looking for a CI policy with cash value with affordable premiums, do drop me a contact request, so that we may discuss your details before a recommendation is made. Hope i was able to shed some insight!

Hi Sumit,

You should still continue with your term plan as the purpose of the term plan is to cover your outstanding mortgage should something happen to you. However, at the point you bought it, it is likely that you only bought it as a plan covering only death (with a TPD rider).

As term plans are meant to cover temporary commitments (hence the 'term'), they typically have no cash value. However the trade off is that the premiums will be very low since the risk during the coverage period is also low (but not zero).

CI policies can be obtained in several ways. Amongst them are

• A term plan with a CI rider. Again, this has no cash value so probably not what you are looking for

• A multipay plan. These are term plans and one does have a cash value under certain conditions but also probably not what you are looking for

• A whole of life limited payment plan. As a whole life plan, there will be a cash value and you can, should you desire, surrender the plan for cash later on. If not, you should keep it for the protection. You would add a CI rider on the plan to get the coverage you are looking for

As many insurers in Singapore offer whole life plans with CI coverage, you would want to compare across the various insurers in order to get an idea of the pricing, coverage, etc. Further more, whole life plans are not that straightfoward in the sense that there are minor differences between the plan structure, covered conditions, etc. Such finer details can also be a factor in deciding which insurer to go with since it is not solely a price comparison, unlike typical term plans.

You can speak with an independent financial advisor who will be able to distribute multiple insurers in order to understand your choices and get a greater understanding of your options.