Hi, I currently have a whole life policy that was bought by my parents when I was young. The WL policy covers CI but not ECI so I am looking at plans to cover myself for ECI as well.? - Seedly
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Insurance

Critical Illness (CI)

Early Critical Illness (ECI)

AVIVA My Early Critical Illness Plan II

AVIVA My MultiPay Critical Illness Plan IV

Anonymous

Asked 2w ago

Hi, I currently have a whole life policy that was bought by my parents when I was young. The WL policy covers CI but not ECI so I am looking at plans to cover myself for ECI as well.?

Should I get the AVIVA my early critical illness or AVIVA multipay? Would like to get a rough idea of what's the difference in premium annually? Thanks.

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Hi anon,

I'd like to pose these questions for you: Do you want to cover ECI for life? Or for a limited number of years? Do you want to cover for a single payout, or multiple claims?

Reason being, a term plan such as a multipay plan (Aviva multipay) requires you to pay as long as you have not made a claim. Thus, if you happen to be blessed with good health, you will have to find a way to sustain payment as long as the plan is active. The same thing goes for Aviva my early CI plan. it is a single payout plan, but you are required to pay as long as you have not claimed.

Thus, if you wish to cover for life with such plans, you must plan to pay premiums for life.

On the other hand, if you wish to cover for life but don't want to pay for life, a limited payment whole life plan may make better sense. This ensures that you retain coverage for life, but you won't have to pay for life. And the premiums are very comparable to the term plans, but might be more cost efficient as you cover for life.

Consider a hybrid of a multi pay with a small whole life early CI if you want a) coverage for life b) being able to claim multiple times c) to pay only during your working years. Reason being, multipay is prohibitively expensive if it covers you till old age.

As an example, if you are 30 years old, sum assured $100K, intending to cover till age 75:

My Early CI Plan costs $894/yr for 45 years or $40230 total

My Multipay costs $1589/yr for 45 years or $71505 total

My Whole Life III costs $2195.5/yr for 25 years ($50K x 2 multiplier till 75) or $54887.5 total

If you wish to cover for life,

My Early CI Plan costs $1670/yr for 69 years or $91850 if you pay till 85 and something happens then

My Multipay costs $2981/yr for 45 years or $163955 if you pay till 85 and something happens then

My Whole Life III still costs $2195.5/yr for 25 years ($50K x 2 multiplier till 75) or $54887.5 total, and since it's a life plan you will still have $50K cover plus cash bonuses.

You'll have to ask yourself what you are looking for, and then you'll be able to decide between a term CI, a whole life CI, a multipay, as well as how long you want your coverage to be.

I'd suggest talking to an advisor for a more in depth discussion as you will need to look at all options and understand them before making a decision.

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Hi there. Aviva CI plans are a good choice. They are arguably the best in the market now. For sure get the Multipay instead of EarlyCI. Multipay coverage is much more comprehensive but yet premiums are about the same as EarlyCI for every level of coverage.

You can reach out to me here to find out more. I cover 9 insurers including Aviva.

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Before you get an additional insurance policy, I will suggest for you to conduct comprehensive financial planning. This is with the intention to give you deeper insights on your existing portfolio. From there, we can determine and evaluate how your existing policies can continue to cover your future needs.

Additionally, it is worthy to remember that the Life Insurance Association Singapore does not mandate the coverage for early Critical Illness. In other words, the respective insurers have the ability to determine the terms for payout. Therefore, this may be something that you wish to consider before getting your early Critical Illness coverage. Above all, all my clients prefer to have more lenient terms for payout.

More Details: Life Insurance Association Singapore (LIA) Critical Illness Framework 2020

If your intention is to get an early Critical Illness coverage from Aviva only, then you should speak to a qualified agent to that end. For this purpose, he will be in the right position to evaluate the mentioned plans with you. This is because there is no way for anyone to give you an idea of the premium without knowing more information about you.

I share quality content on estate planning and financial planning here.

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