Which whole life plan is the most value for money? Aviva MyWholeLifePlan (III) enquiry

Hi anon,

I'm a IFA.

Yes, your understanding is correct and valid as of writing. Aviva's MWLP3 pays out Base + Multiplier + CV accumulated. One other insurer that also pays out in this fashion is TokioMarine, however I tend to find that Aviva's premiums are more competitive and the scope of coverage is better.

Do note that the other insurers do payout CV accumulated provided that the CV + Sum assured is more than the multiplier amount. However, they pay this on top of the Sum Assued, so it will be lesser.

To help you visualize, here are two scenarios

Scenario 1

Basic SA: $100K

Multiplier x 2

CV: $50K

Aviva would pay $100K x 2 + $50K = $250K in a claim during the multiplier period.

Other insurers would pay $200K as $100K + $50K is lesser than $200K

Scenario 2

Basic SA: $100K

Multiplier x 2

CV: $125K

Aviva would pay $100K x 2 + $125K = $325K in a claim during the multiplier period.

Other insurers would pay $225K as $100K + $125K is greater than $200K

Whether or not x2 or x5 multiplier is better would depend on your needs, budget, etc.

Let's say you want to have $300K CI cover during the multiplier years. You could take a $60K x 5 or a $150K x 2 WL plan, but the cash value accumulation would be smaller in a $60K x 5 plan. After the multiplier period is over, the base coverage would drop to $60K plus CV as opposed to $150K + CV for the latter plan. However, the premiums would be lower than a $150K x 2 plan by far.

There really isn't a right or wrong answer to this. I've seen clients choose $75K x 4, $150K x 2, $100K x 3 when they need $300K CI cover during their working years. It all depends on your needs. I suggest to have a discussion with an advisor in order to get a tailor made recommendation.

Lastly, I do find Aviva's offering very compelling. The scope of coverage is amongst the widest and many people I work with do choose Aviva when they are looking at a life plan.