Early Critical Illness (ECI)
Term Life Insurance
Asked by Anonymous
Asked on 18 Oct 2018
Financial advisors have told me that there are some disadvantages to Group insurance, mainly that we don't own the plan, and its terms are subject to change when the insurance vendor changes. So objectively, what are the pros and cons of adding to the Group insurance coverage, compare to buying a whole new personal insurance?
Mindef Group Term is good for temporary coverage as you procure other private insurance that may be more suitable for you when your budget increases. Like what Hariz mentioned, Group Term is great for Death and Disability coverage. You may also consider getting the rider for CI if you only require such protection till 65.
As for ECI, it only covers 10 conditions which may not be adequate. It would be advisable to look at getting your own personal insurance when it comes to ECI coverage. For example, Manulife's ECI covers 105 Different conditions across early, intermediate and late stages.
Having said so, there is no one size fits all to financial planning, and it all boils down to needs and budget.
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For ECI, I wouldn't recommend getting Aviva Living Care Plus because it is a non-standard clause on the conditions for Early CI. Cheap insurance for this is akin to paying peanuts, you get monkey. Its more cost effective to get the Living Care instead (and top it up to max).
If cost is an issue, you may want to consider the ECI for Aviva Mindef. However, it is a term plan that covers only 10 illnesses. If cost is not an issue, it is worthwhile to consider other term plans from other insurance companies.
Top Contributor (Nov)
It's great for simple death cover and personal accident.
But you should look at getting your own personal coverage so that you own the policy and can make assignments if required.
However for Early CI cover, the definitions covered are lacking and you may want to have ECI cover past the age of 65. Preferably for life or at least till life expectancy age.
Thus, you'll need a private plan to have better coverage for longer.
Early CI for Aviva mindef only cover 10 illness which is quite little. Its cheap thats why the coverage is little. You have to take that into consideration.