I just entered the workforce and I'm 25 yo. Currently I have a CI term plan with cash value, AIA Triple Critical Cover. Should I drop the plan and go for a cheaper CI term plan with no cash value?

Why not buy the whole life plan with CI coverage? Life plan has cash value and can attach multipay rider. It is better to have at least one basic life plan, then can top up the coverage with term plan.

Hi anon,

You need to assess if there are better options for you first before you take any action. You are currently covered by TCC and should anything happen, you would at least still have coverage.

With regards to getting a cheaper CI term plan with no cash value, that could be still be a multi pay plan. Some multi pay plans don't have cash value. Alternatively it could be a a stand alone CI plan, or a term plan with accelerated CI. Either way, you need to understand that for such plans:

• Premiums are payable throughout the duration of the term, unless there is a waiver rider, or the plan itself has a waiver feature

• Coverage will last as long as long as the plan's duration

• Payout will be level, and in the case of multipay, you can claim again only after certain criteria are met (e.g. waiting period).

The other option would be a limited payment whole of life plan with CI and ECI riders. What you'll need to take note are:

• Such plans cover you for whole of life without having to pay for whole of life, but yearly premiums will likely be higher as you are paying over a shorter duration. It will likely be cheaper in terms of total premiums however

• Bonuses will add on to your payout, especially in retirement, and hence it will be an escalating payout

• You can boost your cover with a multiplier

As there are many options out there, I'd suggest looking at numbers from both CI term with no cash value vs a CI limited pay whole life, and see which one makes more sense for you. But having done this many times, if you include early CI, the numbers are almost certainly in favour of Whole Life. Regardless, consider your options first and don't surrender your TCC plan prematurely.