Asked on 24 Aug 2018
Yes, upgrade with the group term to its 1mil limit first before looking elsewhere. The Mindef group term is actually one of the most value (best coverage per dollar) in the market. Becos u pay the same premium regardless of age, which is a steal especially the older u are.
But if u want to add critical illness, the mindef group will not be most value as the premium payable is based on your attained age. That means the older u get, you will have to pay higher premium. I suggest you look at the direct insurance (buy direct from the company, no agent commission involved).
Ping me if u would like to learn more.
Let me address your questions one by one.
1) Upgrading existing coverage to 1M - ask yourself why do you need 1M coverage, is the 1M based on your liabilities?
2) Separate Plan for 1M with Aviva. There are a couple of limitations for group term plans, one of which is that you cannot use it as part of your mortgage insurance, and that premiums are expensive post 60 years old. In addition, do ask youself when do you need and want the coverage till?
3) Good or not really depends on your personal preference. For early critical illness, i would most of the time recommend limited pay Whole Life Plan. Reasons being that the pricing is comparable, and that payment is only for a limited time frame when one is still working as opposed to paying till 65 or 75.
You may drop me an email at [email protected] should you wish to have a further discussion.
Tan Siak Lim, CFP. Director, Financial Advisory Group at Financial Alliance
Answered on 24 Aug 2018
SAF Group Term policy has a aggregate limit. Otherwise, it's similiar to a personal term policy. Aviva Multipay CI Plan is good. But good is relative, there are similiar plans from other insurers like AIA, Tokio Marine and Manulife. So make sure you compare to see which serves your need better.