Should a 32 year old working adult currently with AIA Secure Critical Cover Plan, take up both AIA Power Critical Cover and also Aviva Multipay CI Plan IV or just one of them?

Hi anon,

You'll have to understand how the plans work. For example, AIA PWCC pays 100% of the sum assured regardless of the stage of CI. Aviva MPCI pays 100% upon early CI and 300% (less any early stage claims prior) in the event of late CI. That is just one of the many differences between the plans.

You must also consider how long you want the duration of your coverage for. PWCC has a till 75 or till 100 plan, whereas MPCI is very customizable. However, do note that if you are blessed with health, then you will have to keep paying the premiums as long as you live.

In addition, look at how much coverage you need. Just because a plan pays "up to" a certain amount of payout, does not mean that you will get that payout in the event of CI; for example, it is technically true that one can get up to 900% payout for MPCI but that'll require 2 x separate late stage CI occurences along with 2 x recurrent major CI such as heart attack, cancer or stroke; this is something that's very unlikely (although not impossible).

Thus, perhaps you may want to start by considering 3 scenarios, ie. 1) SCC + PWCC 2) SCC + MPCI 3) SCC + PWCC + MPCI. Then, look at the payout that you'll get in each scenario the event of a) late CI b) early CI, and see if that is enough for your needs. There is also the option of WL CI with multiplier, but again, given that I do not know your exact circumstances, it is hard to suggest any numbers.

Remember, get covered for what you need and with a product that you feel suits your needs, but to do that, you need to understand what coverage options you have first, how they work, and how they will payout in various CI scenarios.

To begin with, do note that the scope of coverage for Secure Critical Cover and Power Critical Cover are different. For example, the latter covers early stage Critical Illness conditions as well.

On the other hand, I will suggest for you to do a comprehensive financial portfolio review first. This is because it doesn't seem like you know what's going on based on the way you phrase your question. Accordingly, I will suggest for you to understand your needs, and how you intend to plan for your future. Thereafter, it will become clearer on the type of insurance coverage that you need.

For one thing, do note that there will be premium differences if you terminate your existing insurance policy, and the waiting period will restart. Furthermore, you may lose coverage for Death, as well as for Total & Permanent Disability. Hence, I will suggest for you to speak with your agent to evaluate the situation carefully.

Finally, Life Insurance Association recommends to have about 5 times annual income for Critical Illness protection. Thus, this is one reference point that you may consider in your financial planning.

More Details:

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