Should I consider the AIA Triple Critical Coverage plan as a insurance cum investment with returns of 4% pa?
In my bid to check out the most worthy insurance to get from AIA (and actually to better insure myself since I don't have my own term insurance) I came across this article.
What do you think; is the AIA triple critical coverage a good term insurance to consider since the author idea is that you are "investing" at 4% returns although it's till the age of 75 before you can get back the returns for retirement purposes and at same time you are insured against critical illnesses?
And if I die, the $5000 compassionate bonus could go to my funeral costs + my kins would get the sum assured?
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Loh Tat Tian
07 Jun 2019
Founder at PolicyWoke (We Buy Insurance Policies)
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never mix insurance with investment.
period.
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Josh Tan Jian Liang
22 Aug 2018
Co-founder https://theastuteparent.com at Promiseland Independent Pte Ltd
Hi all,
I should pick that question up by Charmaine just in case you have that same question. Pa...
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What gives you the idea that AIA Triple Critical Coverage Plan is a insurance cum investment?
To be clear, let me go through the following:
1) Triple Critical Cover is a extended non-participating life plan which payouts up to 3 times the insured amount.
2) However the premiums are about 2-2.5 times (depnding on it being value plan or max plan)
3) If we counted the time value of money, you will lose about 33% to 45% of future value, worse if you wait until it matures
4) The best time to surrender/mature for Max Plan is at age 75 (where you get back 75% of insured amount)
Based on your age, for max coverage of $800,000, the premium should be near $15,000 a year for a Max plan. That translate to about 1.87% of coverage.
You may wish to calculate whether self-insure or multi-pay CI is your cup of tea.