I am 22 years old this year, I just started buying my own insurance. My insurance agent recently recommended me to buy this AIA plan called GPP with 2x booster. Is the plan good? - Seedly
Seedly logo
Seedly logo
 

Insurance

Disability Insurance

Critical Illness (CI)

Life Insurance

Anonymous

Asked on 26 Jul 2020

I am 22 years old this year, I just started buying my own insurance. My insurance agent recently recommended me to buy this AIA plan called GPP with 2x booster. Is the plan good?

0 comments

4 answers

Answer Now

Answers (4)

Sort By

Hey there!

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.

Financial planning is an integral part of life. You can reach me here to find out more.

0 comments

👍
2
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post
Patricia Law
Patricia Law
Level 4. Prodigy
Answered on 27 Jul 2020

Hi there,

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.

2 comments

👍
1
Question Poster

27 Jul 2020

GPP covers critical illness, do I still need to buy another critical illness plan?
Patricia Law
Patricia Law

17 Aug 2020

Sorry for the late reply, yes it will be good to have a multiple claim cover so that your coverage can be reset. GPP's CI is one time claim only.
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post
Yh.lens
Yh.lens, Writer at Investing Beanstock
Level 6. Master
Answered on 26 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!

1 comment

👍
1
Question Poster

26 Jul 2020

THANK YOU!
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post
Yang Teng
Yang Teng
Top Contributor

Top Contributor (Aug)

Level 9. God of Wisdom
Answered on 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.

0 comments

👍
0
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post