Should I give up my standalone CI plan in favour of a whole life one, if I already have a (slightly outdated) whole life plan with some dread disease coverage?

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On your question to definitions, you would do better to simply just compare the all-in coverage and total premium cost for a limited pay plan and TCC. A limited pay plan might be cheaper as compared to a pure term for CI/ECI.

I view multiple claim payouts as cost-efficient supplements, and should only be gotten if one has cashflow issues where affordability to lump-sum payouts is a problem. Why go for 100k paid out 3 times when you can just go for 300k one shot. Statistically, the likelihood of a one-shot claim for the full benefit is much higher.

To solve your problem, get insurance from a perspective of health and budget first, coverage options will depend on them.

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Hi anon,

It's not really an apple to apple comparison between multi pay and whole life, but if you are concerned about CI cover after 75 (and especially early CI), then the most cost effective way is likely for you to get a limited payment whole life plan, with a multiplier to boost your coverage.

Questions (non-exhaustive) you should ask yourself include:

• If I give up TCC, and something happens (regardless of late CI or early CI), how much payout would I get on the whole life? Is this payout inferior to TCC or superior in the same scenario? This helps you structure how much coverage you should get with the multiplier

• After 75, how much CI cover do I think I need? This helps you get an idea of your base sum assured. Remember that cash value helps to boost the payout. Also, remember that the plan your parents bought do provide some level of coverage. As it is a whole life, keep it, the value will compound over time.

• Is my affordabiity there? A whole life plan compresses premiums over 25 years whereas a multipay plan spreads them from now till 75. All things equal, even with a multipay allowing multiple potential claims, the premiums for the multipay would likely still be cheaper on a yearly basis (but not total)

• Am I ok with the new late CI defintions? TCC is an older plan and would be on LIA Late CI 2014 definitions. Any new plans now would be on 2019 definitions. Take note that this applies to Late CI only, and early CI is really insurer dependent. However if your focus is early CI, then this is probably not too critical

Take note that if you do get a new whole life, you will have two whole life plans. In a way, that is a 'pseudo' multipay structure of sorts as you can claim from one plan and keep the other plan for another claim later on.