Anonymous
[Rate My Portfolio] Advice on insurance portfolio
30y M non smoker with 60k annual income. Intending to settle down soon + ageing parents as dependants soon-to-be
In-force during uni days:
Aviva MyLifeChoice 15pay: 275k D/TPD - $2.3k/yr
TM Legacy Lifetime+Early Care: 100k D/TPD/CI/ECI - $1.5k/yr
Recently gotten 2months ago:
PruactiveLife 3xmultiplier70: 225k D/TPD/CI - $2.1k/yr
PruactiveProtect 5x multi-pay till 65: 55k D,275k CI, 200k ECI - $2.4k/yr
Am thinking if I might be over-insured esp for CI, and also if it would be more cost-efficient to surrender my Prudential policies and switch to higher SA term life and single-pay CI/ECI?
Hoping to get opinions from people inside+outside insurance industry:)
(update: Seems more cost-efficient if I get Aviva MyProtectorTermII and Aviva MyMultiPay CI Plan IV?)
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Kylie Ng Kai Li
06 Jun 2021
Senior Premier Consultant at AIA Insurance Pte Ltd
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From the above I see that you have 875k death/tpd, 525k CI, 300k ECI.
Considering your dependents (parents) now and in future, your wife and children, I would say CI is ok, not over insured.
Before you got your prudential multipay plan, didn’t you compare with the other insurers offering similar product?
You should not surrender then switch to other plans. You should buy other plans and wait till the waiting period of 90 days is over before you surrender your current plans. Because touch wood, who knows during this period of time you need to claim..
But based on the annual premiums, it could be a bit stretched for 60k annual income. Not sure if you feel the stretch now.
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Term life seems only valid life insurance.
using life insurance as an investment is an inferior inv...
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Hi,
For this 2 policies that are in-forced during your uni days:
Aviva MyLifeChoice 15pay: 275k D/TPD - $2.3k/yr
TM Legacy Lifetime+Early Care: 100k D/TPD/CI/ECI - $1.5k/yr
(Both 15 years limited pay right? So you would have finished about halfway already, can just keep this).
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For the other 2 policies:
(Pay for how many years?)
I don't know your circumstances well enough to know if you should keep or give up on the new policies.
For myself, I would get a single payout term plan to top up and cover my additional CI coverage needs instead of a multipay one till 65. Of course, it would be difficult to predict how many times one can get diagnosed with ECI/CI, but I would rather balance the amount of premiums and the coverage I would be getting.
An additional lump sum of $200k on top of the $100k ECI should be enough for your current stage of life with $60k annual income (is this take home?).
As for the Pruactive life, if you were to get a whole life plan, why didn't you add the ECI rider instead of getting a separate PruactiveProtect?
By the way, there are nothing wrong with the policies, but its just whether it is suitable for you. Cos the total premiums you are paying for is $8.3k/year (more than 10% of your income)! And this has yet to include the hospitalisation etc.