Need help to evaluate my current insurance coverage for a 28 yo female, non-smoker, no dependent, with 58.5k annual income?

I have the following plans:

Great Eastern Supreme Health P Plus with Classic P and Essential Riders: SGD 381 cash top up this year
Aviva My Whole Life Plan III with TPD Cover: $100K SA with x4 multiplier till 65 yo; $1788 p.a. for 25 years (I know most people recommend term; but I wanted to cover lifetime TPD and also like the facts of limited payment term, ability to increase SA at certain milestones and there is cash value inside )
Aviva My MultiPay Critical Illness Plan IV: $100k SA up till 85 yo (100% for early/intermediate and 300% for late/advance; can be paid up to 900%); $2129 p.a.
Aviva Ideal Income: $3000/month with 3% escalation (3 months prebenefit) till 65 yo; $769.9 p.a

I have additional coverage under company including for personal accidents. Hence, I feel I do not need to apply for a personal accident plan unless I leave my current company given that premium is the same and there is no pre-existing conditions for personal accident insurance. Is my understanding correct?

Am I under-insured/over-insured?

How much would you recommend for Careshield Life Supplement in the future?

Discussion (4)

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Elijah Lee

16 Jun 2021

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

Sorry, I need to clarify something: Your Aviva WL plan has no CI cover? Not that I am suggesting that you do anything with it, but I am rather intrigued by your school of thought.

Your cover is pretty ok in general. 5x annual income for late CI (1.5x for early) with ability to make multiple claims, but take note that if you are blessed with health, then all the premiums made for MPCI IV will just evaporate when you turn 85. You'll have to rely on your own funds for CI at that point. That's why I asked my earlier question about your WL plan having no CI cover.

PA coverage is a nice to have, but if you have budget, and have settled Death/TPD/CI/ISP cover, then you can look at it as well. Yes PA plans have level premiums (age banded) and is not dependent on medical underwriting.

I won't say you're overinsured or underinsured. But take into account your future path, if you have kids/buy a house/etc, $400K death/TPD cover is likely to be insufficient.

For Careshield Life Supplement, if you don't want to pay cash, then you'll want to go just under the $600/yr MA limit and see what coverage that gets you (additional $1500/mth on top of CSL 3ADL plan). If you want 2ADL plans, then you will have to accept a lower coverage amount.

But if you feel you need more coverage, say, $3000/mth in the event of severe disability, then you must be prepared to pay cash.

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Zac

15 Jun 2021

Noob at Idiots Invest

Not an insurance agent.

Overall coverage looks reasonable. I think it's fair to utilise company coverage for personal accident plan. Income wise is 58.5k gross or net? Either way, the annual premium you're paying is 8-10% of your annual income which is a reasonable ball-park figure to spend on insurance.

Don't forget retirement planning, make sure at least some of your remaining cash is going towards that. No dependents now but any plans to get married? Ensure you review coverage if/when that happens or if you decide to have children.

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