22 Mar 2021
Context: 500k CI rider accelerated for the term insurance plan, 100k sum assured for the standalone CI plan
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22 Mar 2021
Senior Financial Services Manager at Phillip Securities (Jurong East)
(It sounds like you have $500K CI on a term and $100K CI on a standalone plan already, which I base my answer upon)
This depends on a couple of things: whether you have sufficient CI coverage for your needs already, and whether you believe you will require CI coverage even in your retirement, as a way to ensure that you have money to take care of the costs of CI, without having to liquidate retirement assets in the midst of a market crash, sell off your property, borrow from relatives, or turn to your children for assistance.
If you don't think you wish to retain CI coverage in retirement, then you just need to ask if $600K CI coverage is sufficient for you. This amount of money should at least take care of your on-going expenses for 5 years as well as miscellaneous costs of CI. If this amount is enough, then that's great. You don't really need more coverage unless your needs change drastically. If you do need more coverage, then you can consider a separate standalone CI plan.
While it can be nice to have more coverage, the reality is that someone has to pay for it (i.e. you). So we do want to keep a balance between your premiums vs the coverage. Anyone can wish for $10 million in CI coverage, but until CI strikes, you will be paying an arm and a leg for the premiums.
If you wish to retain CI coverage in retirement, then you might want to consider a limited payment whole life plan instead of a standalone CI plan, as that might be more cost efficient in the long run. But the mathematics of that also depend on your coverage needs.
Speak with an advisor to walk through the maths and the thought process, and that might help you reach a conclusion sooner.
21 Mar 2021
Writer at Jeffreyleezq.com
Maybe not necessary. Depends on yourself.
For me I have a standalone CI plan that is based on the 2014 CI definition, and recently I bought another $1 million term life plan with CI rider, but the latter is based on 2019 definitions.
Anyways if you are interested you can check out my insurance review post for the year 2021 here: My Insurance Review (2021) - A Kiasu Approach
My post hightlights some of my reasonings that were considered on my end for why a particular policy was chosen etc.
Pang Zhe Liang
21 Mar 2021
Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)
For one thing, you can have ten plans and still be insufficiently covered for Critical Illness. Cons...
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