Asked by Anonymous

How do I determine the amount of coverage to get for multipay critical illness insurance?

Recently I have been approached by my bank RM for needs assessment. And was recommended the AIA Triple Care Coverage with Sum Assured of $300k. It was poignant to see my mum grapple with breast cancer, which rendered her uninsurable since 20 years ago when she claimed her payout. All was well until the cancer recurred few years ago and expenses have since been adding up despite subsidised care. I am trying to make a comparison of the different plans available in the market but frequently ponder over the amount of protection I will need. FYI, I am a male non smoker with no medical history and ANB 35.

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    • Alan Kor
      Alan Kor

      Top Contributor (Jan)

      63 Answers, 103 Upvotes
      Answered on 24 Aug 2018

      multi-pay critical illness plans typically come with higher premiums and a more complex set of terms and conditions.

      you buy liao may be denied 100% payout or lesser

      you must be very sure of the clauses

      agents are pushing to sell multi-pay ci due to the commissions from the high premiums you will be paying

      do your due diligence

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    • Jin Shun Chia
      Jin Shun Chia
      39 Answers, 62 Upvotes
      Answered on 20 Aug 2018

      To ensure the size of the payout is appropriate, you should consider the following factors:

      • your hospital bills have been covered: if you only have government hospital bills coverage, or partial coverage of hospital bills, you have to take some money from the payout to cover the co-payment costs (this is usually zero if you have hospital plan plus full coverage riders; you may need to set aside $15k onwards if you only have MediShield Life)

      • additional treatment bills: alternative treatment and additional medicines and appliances may exceed your hospitalisation coverage, hence you need the payout for this (this can range from $50k to $100k normally, and can be higher is you go for premium treatment methods)

      • caregiving costs: would you need to hire a helper, or engage someone to upkeep things in the house? (typical costs $1,500/month to pay for stay-in helper without government subsidies; amount is higher if you prefer home visit nurses)

      • income replacement: the money you need to cover daily expenses during the time you cannot work due to illnesses (depends on how much you're spending now, with corrections on how your expenses will change in the event of CI)

      Just a side note, instead of getting multi-pay CI, I got a few CI plans with varying sum assured. Then depending on the severity of the CI, I'll claim from various policies. However, this option is more expensive compared to multi-pay CI plans. I plan it this way for myself because I prefer to have limited payment term for my CI coverage. :)

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    Hariz Arthur Maloy
    Hariz Arthur Maloy, Independent Financial Advisor at Promiseland Independent

    Top Contributor (Jan)

    295 Answers, 494 Upvotes
    18 Aug 2018

    Hi Anon, wonderful to hear you're getting yourself covered for multiple stages of CI.

    The rule of thumb for CI coverage is 3-5 X Your Annual Income.

    I'm a IFA/broker and would suggest you look at Aviva's Multi Pay CI plan to compare.

    Here's a Business Times article already with a comparison.

    If you would like quotes to compare and understand why you may require 3-5 X Annual Income as stated by the Life Insurance Association, drop me a message at

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