Hi anon,
I'll leave multipay out of the discussion.
Let's talk about normal ECI term plans. I'll assume you are 30 y.o. next birthday, male non smoker. And I'll use Aviva as a benchmark for comparison.
A $200K coverage pure early CI plan (My Early CI plan II) costs $1840/yr for 45 years to cover you till age 75. Total cost $82800. If nothing happens, you finish paying for the plan and it ends at 75 and you get nothing back.
A $50K x 4 (till age 75) whole life plan with pure early CI rider costs $2700/yr for 25 years. Total cost $67500. If nothing happens, you finish paying at age 55 and you get at least the same coverage at the early CI plan, with the added benefit of at least $50K ECI coverage after age 75. And even if you never contract early CI but merely pass on peacefully, you'll still get a payout of $50K plus accumulated bonuses.
So really, it may seem that you save $900/yr by getting the term, but that's not the right way of looking at it.
You'll notice I only gave the premiums for something till age 75. Now let's look at the same plans but till age 99.
The same term plan now costs $3828/yr, every year, for cover till age 99, or when you claim.
I'll take the same Whole Life plan (but $100K x 2 this time) as this will ensure that the cash value in the plan is able to let the plan cover at least $200K after the multiplier ends. This plan costs $3266/yr for 25 years.
Looking at the numbers, it totally doesn't make any sense to buy single payout term plans to cover ECI for life. Whole Life with multiplier plans have become very competitive (or even outright winners) when you are talking about CI/ECI coverage, so much so that I can say that insurers are now waging the war for business on multipay where there is plenty to differentiate the plans, since they are all so different. Term plans, when you add ECI riders or even pure term ECI plans, are honestly quite far behind. The market has evolved to keep up with changing times, and the true winner is the consumer who has better options now.
Hi anon,
I'll leave multipay out of the discussion.
Let's talk about normal ECI term plans. I'll assume you are 30 y.o. next birthday, male non smoker. And I'll use Aviva as a benchmark for comparison.
A $200K coverage pure early CI plan (My Early CI plan II) costs $1840/yr for 45 years to cover you till age 75. Total cost $82800. If nothing happens, you finish paying for the plan and it ends at 75 and you get nothing back.
A $50K x 4 (till age 75) whole life plan with pure early CI rider costs $2700/yr for 25 years. Total cost $67500. If nothing happens, you finish paying at age 55 and you get at least the same coverage at the early CI plan, with the added benefit of at least $50K ECI coverage after age 75. And even if you never contract early CI but merely pass on peacefully, you'll still get a payout of $50K plus accumulated bonuses.
So really, it may seem that you save $900/yr by getting the term, but that's not the right way of looking at it.
You'll notice I only gave the premiums for something till age 75. Now let's look at the same plans but till age 99.
The same term plan now costs $3828/yr, every year, for cover till age 99, or when you claim.
I'll take the same Whole Life plan (but $100K x 2 this time) as this will ensure that the cash value in the plan is able to let the plan cover at least $200K after the multiplier ends. This plan costs $3266/yr for 25 years.
Looking at the numbers, it totally doesn't make any sense to buy single payout term plans to cover ECI for life. Whole Life with multiplier plans have become very competitive (or even outright winners) when you are talking about CI/ECI coverage, so much so that I can say that insurers are now waging the war for business on multipay where there is plenty to differentiate the plans, since they are all so different. Term plans, when you add ECI riders or even pure term ECI plans, are honestly quite far behind. The market has evolved to keep up with changing times, and the true winner is the consumer who has better options now.