facebookWhat's the best valued ECI for someone that has no pre-exisiting, ANB 30 yrs old? Would it be better to go for Multipay? I have CI and Death Covered up to 10X my income already.? - Seedly

Anonymous

14 Oct 2020

Insurance

What's the best valued ECI for someone that has no pre-exisiting, ANB 30 yrs old? Would it be better to go for Multipay? I have CI and Death Covered up to 10X my income already.?

What's the best valued ECI for someone that has no pre-exisiting, ANB 30 yrs old?

Would it be better to go for Multipay?

I have CI and Death Covered up to 10X my income already.

Thinking of covering for early CI, in case i get early cancer or early heart disease. Was thinking of going ahead with FWD Cancer and Heart insurance. But would like a 2nd opinion.

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Elijah Lee

21 Sep 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

If you are looking at having ECI cover for life, then you can consider a whole of life plan. If you are looking at being able to claim if you have recurrent CI, then you can consider multipay.

For whole life limited pay, most insurers offer such plans and you'll want to look at them and analyze based on their coverage, premiums and any other features. An independent financial advisor should be able to help you with this, including getting the quotes and explaining the differences with you. Such plans are best to cover ECI throughout your life span as they don't require you to pay forever yet the coverage is retained. The plan with the best value is probably one that will have a combination of good coverage and reasonable premiums.

Multipay plans will be term plans so it can get pricey if you want to get a multi pay plan to cover you till age 99. You may add a waiver to waiver premiums but if nothing happens to you, you'll just have to keep paying till the plan ends. There's usually no cash value attached to a multipay, although some insurers may have. On the flip side, you will be able to claim for recurrent CIs, as well as multiple times for early CI. The plans are all different, especially if it comes down to the payout structure, so it's not a straightforward comparison compared to whole life. I personally think multipay is quite cost effective as a term plan till maybe age 65 or 70, but beyond that the costs are quite tremendous. A good value plan would have decent premiums and a payout structure that you like.

Take note that standalone cancer plans, etc, only cover one specific CI. While cancer may be the most common CI in Singapore, it doesn't mean that having a CI means you have cancer. It could be any other of the other 30+ CIs. So have adequate CI cover first before considering stand alone plans to ramp your coverage up.

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