facebookWould it make sense to have both standalone CI (with multiple claims) and Whole Life plan with ECI as rider? - Seedly


30 Jun 2021



Would it make sense to have both standalone CI (with multiple claims) and Whole Life plan with ECI as rider?

I was recommended a whole life plan + ECI as a rider. As the rider does not provide multiple claims, I requested for a standalone CI with multiple claim. However, I am wondering if I should still maintain the ECI as a rider on the Whole Life, or would it make sense to omit the rider, and increase the SA on Whole Life instead?

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Elijah Lee

30 Jun 2021

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

You are right to say that a WL plan with ECI rider will only pay out once.

However, it is also one of, if not, the most effective way to provide whole of life CI cover, given that no one knows when, or if they will be diagnosed with CI.

On the other hand, the only way to be able to claim for recurrent CI, is via a multipay plan.

So, you need to ask yourself what you are looking to get coverage for. Are you more concerned about recurrent CI? If so, a multipay plan is probably the only solution here. If you are concerned about having CI coverage for your whole life, then a whole life CI plan is probably the most cost efficient. And if you need both types of coverage, then some combination of WL + multipay is probably what you have to get for yourself.

You mention omitting the ECI rider on the WL. Do you mean that you'll just go with Late CI rider on the WL? Or have a WL plan with no other riders attached? Having a WL plan cover death/TPD isn't cost effective, since a term plan will likely be the more appropriate solution.

Also, note that no two multipay plans and WL plans are the same. You'd want to look at all the options available on the market so that you can find the best solution (or combination of solutions) that suit your needs. Speak with an independent financial advisor if you need to know more about the options from various insurers, and you can do some mix and match should you need both Multipay and WL coverage.

Pang Zhe Liang

30 Jun 2021

Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)

If the standalone Critical Illness plan is able to provide sufficient coverage for your needs, then you don't need the rider on the whole life insurance plan.

In like manner, the question is whether you have sufficient basic cover under your whole life insurance - to justify the need to increase the sum insured.

Given that money is a limited resource (especially since you won't want to overspend on insurance), it will become imperative on how to allocate your budget such that you spend as little as you can, and get as much coverage as you need.

For this purpose, your insurance agent should be in the best position to perform the necessary calculation and to confirm the best option for you. This is because there is no way for us to tell you which option makes sense without knowing more about you and your needs.

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