facebookI would like to seek an opinion in options for my 57 years old mum's ECI coverage. Would a limited pay whole life insurance with ECI rider be better or Term insurance, with budget of 25k in mind? - Seedly
Seedly logo
Seedly logo
 

Advertisement

Anonymous

12 Jun 2020

Insurance

I would like to seek an opinion in options for my 57 years old mum's ECI coverage. Would a limited pay whole life insurance with ECI rider be better or Term insurance, with budget of 25k in mind?

11

      Discussion (11)

      What are your thoughts?

      Hey there!

      Probably have to chat with you more to find out your situation better and your needs.

      You might want to opt for a multi-pay CI plan that covers relapses and a variety of diseases since it's a lot more comprehensive, covering even pre-early conditions.

      A term plan at that age is actually high due to the mortality costs. Also, whole life insurance with ECI riders are often accelerating; it will affect your death benefit in the event you claim for CI. You might want to speak to a trusted financial consultant to see how your needs can be met.

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

      Reply

      Save

          View 2 replies

          Elijah Lee

          Elijah Lee

          11 Jun 2020

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

          Hi anon,

          I see that you have posted a budget (presumbly it's your total budget?). I'm going to look at some numbers to put things in perspective.

          For reference, a $25K x 4 early CI whole life plan would cost about $4.1K over 10 years, covering $100K early CI till 70 and after age 70, $25K with accumulated bonuses. A $25K x 2 early CI whole life plan costs about $3.2K for 10 years. Both are above budget, although the $25K x 2 early CI whole life would exceed by just $7K (this may or may not be a big issue for you). The intangible benefit of this is simple: She gets coverage for the rest of life without having the need to pay premiums. Being a whole life plan, it will also pay out upon death if no claims are made for CI.

          A term plan for pure early CI for $100K coverage costs $2.9K for 13 years, covering $100K for early CI and then terminates thereafter. The same plan, covering $50K would be around $1.55K. (Note that these are reference numbers based on a quick check, but should be around this range). So it is cheaper by a bit, but then we also need to acknowledge that cover ceases after age 70.

          So realistically, the only plan that would cover her for early CI and still be within your budget, would be the $50K term plan, for a total outlay of about $20K. You'll still have $5K left over, which you have to 'self-insure' (i.e. set that money aside never to be touched in the event of illness after age 70). Unless you are willing to increase your budget for a whole life, a term might be better. Whether or not you can increase your budget, will be based on your personal circumstances.

          Reply

          Save

              View 2 replies

              Tan Li Xing

              Tan Li Xing

              11 Jun 2020

              Level 9·Financial Consultant at Prudential Assurance Company (Singapore)

              Hi Anon,

              Glad that you are looking at coverage for your mum.

              Just wanted to ask, your budget of 25...

              Read 9 other comments with a Seedly account

              You will also enjoy exclusive benefits and get access to members only features.

              Continue with Facebook
              Sign in with Apple

              Sign up or login with an email here

              Write your thoughts

              Advertisement