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Multi-pay Critical Illness Insurance Plans

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Old 07-12-2017, 04:46 AM   #91
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Hello Bigoya!

I understand that one does not simply buy insurance as a gamble with the insurance company.

Ultimately I guess it is how we going to protect our future in the event if the insured person have critical illness.

I meet 4 to 5 insurance agent/independent financial agent. Giving them my requirement of what I want. All the 5 insurance agent/independent financial agent propose me a different plan from different insurance provider. That was around 6 - 8 months back.

With all the different advise, I have come to the point that asking myself 'what I really want to protect?'. I even write in my journal so 10 year later I would still remember why I choose Aviva Multipay Critical Illness, and not other provider CI or even single pay CI. Furthermore I even go to the extent of comparing all the product from the sum insured to the age I like to protect until. I also ask why I should go for 150k sum assured and not 100k sum assured. Like there must be a reason behind every decision that I take.

To my surprise and spoiler (for a 26 ANB with 150k sum assured):
- Aviva Multipay CI (Standalone) is much more affordable if the insured person insured up to 65 than Aviva Multipay CI (As a rider).

Standalone is S$753 per annual
Rider is S$997.50 per annual

Normally I thought when going as a rider or package with death coverage would be much affordable. This fact really give me a shock!

I have a excel sheet for all these comparison, total I get 15 different quote just for Aviva Multipay to see and understand.

Yeah.. that why I took so long to decided. Back to your question, Bigoya. I would like to buy Multipay in the event if I am diagnose with Critical Illness, I can use the sum assured payout for medical expense.

Bigoya, I have been reading most of the insurance thread and know that you are quite known and expert here in this section. Correct me if I have any point that is incorrect.


Cheers~!
Ezylryb
Thanks for you compliments and excitement, Ezylibrary.
Don't call me an expert, will kena bash one.
Just out of pure curiosity though, you mentioned you met 4 to 5 agents but why am i not one of them (I am not soliticiting you to meet me in anyway)?

Anyway, I'm thanking you for all these that you've shared. You have a very interesting experience especially the journal-keeping.
I must say I'm genuinely impressed by your effort.

Back to the point. I'm not sure how did you get your quotes, but I got curious about your findings and here's what I've gotten:

I did a few trial and error with the quote generator and I got nothing near what you've stated.

On a side note, it would be obvious that if you've gotten advice form different tied agents, each of them would very likely only advice you on their own company's product. This explains why you'll never get the same recommendations from them.
I wouldn't even be surprised if an AXA agent actually tried to sell you an Optimus, which is an ILP instead.
On the other hand, I'd expect you to have also received a lot of quotations with some crappy ECI riders tagged onto an expensive Whole Life plans.
You could tell me if my guesses are right or wrong.

Back to my question. In the event of CI (i.e. advance stage), you'd likely need at least $200k (u need to calculate the figure with math, it doesn't just magically appear in your mind) assuming due to the CI, you could no longer continue working for a good period of time, AND/OR, you need a lump sum in case for any reason you require specialized cancer drugs or alternative/funny treatment which are expensive.
For normal treatments such as chemotherapy, the Shield plan would pretty much have you covered and you need not worry about them in most cases.

We all know Early CI coverage is costly, there really really REALLY, isn't any good reason to get $150k Sum Assured unless you are super duper rich (which you wouldn't have otherwise went through the thinking process of 6 - 8 mths, just buy only).
The purpose of Early CI cover is just so that if you really kena, as the stage is still early, u only suffer a relatively smaller risk, only just in case you really need a small sum of money to tide over the period, especially if you are not wealthy enough to actually self-insure.

Furthermore, I'm not sure if any of the 5 agents you met actually explained to you, that in the event of CI (advance/late stage), you could actually claim up to 3x of the sum assured, less any previous claims made for early stages.

I hope this super long reply (in reciprocation of your effort) could give you way better insights to Early CI coverage and most importantly, uncover any blind spots you failed to realized over the last 8 months.
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Last edited by Bigoya; 07-12-2017 at 04:51 AM..
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Old 07-12-2017, 06:34 PM   #92
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Hi bro, sorry I've lost track of your age (if you've provided me before).

ECI has a really old, outdated product structure, and hence, less effective (IMO) in terms of cost and coverage compared to the new MCI (Multipay CI).
Thanks. I guess I should opt for $50k MCI instead of ECI and lower my standard CI sum assured as well since MCI also pays out for normal CI.
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Old 07-12-2017, 07:05 PM   #93
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Thanks. I guess I should opt for $50k MCI instead of ECI and lower my standard CI sum assured as well since MCI also pays out for normal CI.
That's a wise decision in theory.
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Old 08-12-2017, 11:13 PM   #94
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That's a wise decision in theory.
Actually, I’ve been thinking... wouldn’t it be better off to just attach Multipay CI rider and completely remove traditional CI rider? In my previous example, instead of $200k CI rider, I go with $70k MCI rider? That will achieve the same (potentially more) coverage. In the event of early critical illness, I will receive $70k. If I get diagnosed with advance CI I will receive $210k (or $140k if I previously received $70k for ECI).

What’s the point of having normal CI riders? Am I missing something?
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Old 08-12-2017, 11:33 PM   #95
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Actually, I’ve been thinking... wouldn’t it be better off to just attach Multipay CI rider and completely remove traditional CI rider? In my previous example, instead of $200k CI rider, I go with $70k MCI rider? That will achieve the same (potentially more) coverage. In the event of early critical illness, I will receive $70k. If I get diagnosed with advance CI I will receive $210k (or $140k if I previously received $70k for ECI).

What’s the point of having normal CI riders? Am I missing something?
You are missing on the cost.
ECI cover is more expensive than CI cover.
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Old 09-12-2017, 01:23 AM   #96
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You are missing on the cost.
ECI cover is more expensive than CI cover.
How much more? I wouldn’t mind paying a bit more for some early CI benefit and as well as extra coverage for CI relapse..

What about choosing between terms with $150k CI & $50k ECI riders versus those with just $70k MCI rider. In this scenario wouldn’t one always just opt for the $70k MCI rider?
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Old 11-12-2017, 01:16 AM   #97
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Thumbs up

How much more? I wouldn’t mind paying a bit more for some early CI benefit and as well as extra coverage for CI relapse..

What about choosing between terms with $150k CI & $50k ECI riders versus those with just $70k MCI rider. In this scenario wouldn’t one always just opt for the $70k MCI rider?
You have just uncovered one of my blind spot.
Very good point there.

I compared a $150k CI + $50k MCI riders with $100k MCI rider, annual premium is roughly $90 more for the latter based on a male ANB 40.
With all the additional benefits in MCI, it is certainly worthy for me.

On the other hand, a $200k CI + $50k ECI riders compare with $83k MCI rider, annual premium is roughly $200 cheaper for the latter based on the same male ANB 40.

Can't find any logical reason why this wouldn't be a viable option apart from the fact that no one (me and my clients) has really explored the possibility.
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