How can i better plan my life Insurance with CI coverage? - Seedly


Asked by Anonymous

Asked on 28 May 2019

How can i better plan my life Insurance with CI coverage?

Want to review my current plans for insurance coverage.


1) GE 4 X Multiplier (60k SA, 4 X Multiplier until 70 Years old)

Premium 2.7k p.a for 20 years

2) AIA Critical Cover (50K SA, able to claim 3 times, with 12 months apart)

Premium:$950 p.a

3) GE Supreme Health and Total Health

I plan to change the Life plan to a term plan (coverage till 100 years old)

Should I keep my AIA Critical Cover or have a CI rider with the new term plan?

Open to suggestions!

Thanks in advance! :)


Answers (3)

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A Term to 100 with CI will cost more than your WL plan. This new post comes in handy.

AIA Critical Cover covers ECI as well and is yours till 75 or 100?



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Question Poster

29 May 2019

Thanks for the link. However do you think i should get another term plan to complement the life plan? I feel that the coverage of the life plan is too little to supplement the preferred sum assured, looking at 500k now.
Hariz Arthur Maloy
Hariz Arthur Maloy

29 May 2019

Rule of thumb: 10 X your annual income as coverage in the event of death and 5 X your annual income as coverage in the event of Critical Illness (of which half would be good as ECI). You don't really need more than that unless you're anticipating for future income growth and liabilities. I expect to make more money in the future thus, I cover way more now, since it's cheaper. The AIA TCC that you have to pay till 100 feels a little overkill too me. A 25 pay 50k WL replacement would probably be cheaper or if you don't want to cover for Whole of Life a term to 65 or 70 replacement from Singlife or Aviva would be much cheaper. I represent over 10+ insurers, if you'd like a comparison or a closer look at your entire planning, let me know.
Eric Chia
Eric Chia, Senior Financial Consultant at Prudential
Level 6. Master
Answered on 12 Jun 2019

Hi there, just to summarise your current coverage is as follows:

  • death, tpd, ti, ci = $240k + $50k = $290k

  • hospital plan with rider (you'll be keeping this I presume)

1) whole life plan is cheaper than term plan coverage until 100yo (you can add up the total premiums payable for both plans to confirm this)

2) is $290k coverage enough? Say in the event of death, if your family needs $2k monthly expenses, $290k can sustain them for 12 years. In the event of critical illness, your GE plan covers your hospital bills, but you can't work and maybe need to hire caregiver. So maybe you'll need about $1.5k monthly. $290k can last you for about 16 years (some CI like Alzheimer's will take this long).

So personally I feel that giving up a whole life plan to take a term plan covering until 100yo doesn't make sense. But if $290k coverage isn't enough, can consider taking a term plan for 20years (like for extra family expenses when children are young). This add on is cheaper than adding on a whole life plan.



Why would you want to surrender your life plan?

Early surrender of it will cause hefty charges and also at the same time a life plan can be a core instrument in your overall portfolio. These funds are generating returns and providing coverage at the same time. If you hold it long enough, the returns might break even and allow you to to have "free coverage" through out those years.

I do have a life plan myself and this is a plan that will follow me for life till I do not need the coverage. I top up the remaining shortfall in coverage with a term for a shorter tenor.