I'm buying a whole life insurance for my son, age 25. I want to add on TPD and ECI. Is multipay or single ECI better? Which company is better for multipay and which for ECI?
He already has a whole life plan since young by it is the old plan with no ECI, just CI. Is multi-pay very hard to claim? If not, should we buy him a plan and he buys another later when he starts working? The he can have 2 different ECI plan.
Hi Lim, you should work with an advisor to help you understand your options in the market.
Multi claim policies that are available to be purchased for whole of life are incredibly expensive because the risk is already priced in.
In fact, if managed well, a single claim ECI payout would be partially used and partially invested so that if another one strikes, you'll be prepared from your own self insurance.
I'd suggest getting a single claim all stage CI rider for the whole life policy coupled with a term multi claim CI till age 70/75.
These are possible answers to your queries
1) Is multipay or single ECI better? - Multipay is slightly more expensive than a single ECI. Many feel it's value. Me included
2) Which company is better for multipay and which for ECI? - these are some solutions
3) old plan with no ECI, just CI - getting early CI coverage for him will be meaningful now. It covers short term loss of income well
4) Is multi-pay very hard to claim? - Claims are based on condition stated and definition is the same as early CI.
5)** we buy him a plan and he buys another later - Lock in the plan benefits now and the premium at his current age. Then he ONLY needs to start buying more coverage when he has a life stage like marriage and/or mortgage liability.**
Hope it helps. Look for a qualified adviser to run through the pros and cons of the various solutions and the stages of multi-CI claims. If I can be of help drop me an email at [email protected].
Numerically, multiple pay is cheaper as they are partially accelerated products as compared to singl...
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