Critical Illness (CI)
Asked on 26 Jul 2020
Will need to chat more with you to find out your needs and objectives.
With GPP, a 2x booster will mean that you will receive twice the coverage during your working years, ie. if your base coverage is 100k, you will only receive 200k coverage for death and TPD. I normally will opt for a higher boosted coverage. And it's actually cheaper to opt for a higher multiplier instead of a 2x multiplier. But of course, when the multiplier ends, it will drop back to your base coverage then (which will be lower if it's a 5X multiplier). And you will have a higher cash value compared to if you have a 5x booster.
If you are looking for coverage, you might want to either opt for a higher multiplier or get a term plan instead since you'll ultimately need something to hedge against a liability.
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GPP with 2x booster a good plan for life protection but you need to have other plans such as hospitalisation, accident and critical illness coverage on top of this to be well covered for now. It is good to start young as the premiums are relatively low.
27 Jul 2020
GPP is a Whole Life insurance policy. It basically covers Death, TPD and Critical Illness. (riders) Being a whole life plan, this will be a participating policy which means you will accumulate Cash Value since AIA will be investing part of your premium into a 'Par Fund' with around 3%+-4%+ return. You will have the option to pay finish your premium in 12 years, 20 years or till age 65/75.
The booster you are referring to is actually a Multiplier, and a 2X multiplier just means that when you attain age 65, whatever sum assured will be divided by half. Eg a 100k sum assured before 65 will become 50k sum assured after the multiplier (same for CI if you get a rider)
The plan in itself is a comprehensive and 'guranteed' form of coverage since you are covered for life. You also have the option to add on a Flexi Term so that you can boost your Death/TPD sum assured if you want to. GPP is essentially a plan you should never surrender and for my case, I got this plan because it provides ECI and LCI coverage.
In essence, get this plan before CI definition changes. As i want to get the preimum paid as soon as possible, I chose the 20 years limited payment so that when I'm 40+ I no longer have to pay any premium anymore and can just invest more money while remain covered till death
Hope this helps!
26 Jul 2020
You may want to consult an independent advisor to see if it really suits you. It is also important to note the differences between whole and term life insurance to know which would be more ideal for you.
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