Early Critical Illness (ECI)
Asked on 06 Jan 2019
I am looking for critical illness policy, my agent recommends these 2 plans. Which one is a better?
Both cover the same number and type of critical illness. Critical Care Advantage is a basic ECI plan. Supreme Early Multiplier is a whole life plan with critical illness coverage. I can choose to multiply my coverage by 3/4 times of sum assured. I can decide if the multiplied coverage should last till age 65/70, and premium payment over 20 years or until age 65. There is surrender value at 65/70.
CCA premium is comparable to Supreme Early multiplier although it is a term plan. (I think GE should revise this rate) One thing to note regarding CCA is that it provides very little death benefit. My recommendation is SEM. Two highlights of Supreme Early Multiplier: full premium waiver upon diagosis any stage of CI and double payout for accidental TPD.
SEM is poistioned as protection plan. Please ignore the surrender value. (This applies to all the multiplier whole life plan in the market.) 4 times multiplier to 65 years old is an optimized combination which provides the most value of money. of course you may go for 70 yrs if premium differs not that much of your age. Hopefully it may help.
Well it depends on your need.
A multiplier till a certain age is essentially Term Insurance. So if you need insurance after 70 (and statistically speaking, you do - just not as much as during the crucial period of a work life), you should get some whole life. That's why people purchase both Term and Whole Life, after all.
Your comparison also needs to be more specific and attuned to your needs. I've tried posting the picture twice and its not working, but your FA should be able to provide basic dimensions such as:
Total Premium: Because since its ECI, the Term total premiums can really rack up.
Breakeven point: If you invested the rest, what kind of annualized yield would you need to get? Depending on age, it could be as low as 4% and as high as 6 point something.
Additional Benefits?: (which Whole Life plans tend to come with automatically and you need to decide if you really need them. Otherwise, why pay for them?)
Other factors to consider: Do you invest? Are you familiar with any other policies? Whats your budget like? Heck, why GE even? You have plenty of options.
If you'd like a second opinion, I'd love to help you with a bit of my time. You can reach me below.
If I have to choose between the 2 plans, I am inclined to CCA as it is a term plan. It will typically have higher protection vs cost. Since your concern is protect (critical illness protection), the savings portion in the whole life is not necessary.
It is hard to further give an opinion without having the details. Such as the sum assured and premiums. If u like to hear alternative solution and further evaluting your options, do add me on facebook.