Multi-pay Critical Illness Insurance Plans

[LordDeathZ]

Hello there! For ECI/CI, I always recommend 3~5x of your annual salary as a gauge.

If you are looking at ECI + CI coverage, currently the most popular product is the Multipay structured product

On top of it I was also recommend the Aviva multipay ci on top of it with $50k sum assured.

I supposed that should be sufficient for now and able to catch up with future potential income increase?

 

[winthony]

On top of it I was also recommend the Aviva multipay ci on top of it with $50k sum assured.

I supposed that should be sufficient for now and able to catch up with future potential income increase?

So with the Aviva multipay on top of it at 50k , you are getting a coverage of

ECI : 50k x 2 ( from different pots )
CI : 150k less any ECI claims
Recurring CI : 100k x 2 (2 years waiting period)

Sufficient or not have to see your income Will the coverage now be able to sustain you in the event of a diagnosis? If your emphasis is on ECI/CI, you might want to bring the multipay's sum assured higher using the budget from the wholelife.

There are a few ways to do it, because I dont know your age so its hard for me to gauge the total premium outlay but

1) Get a term + ECI rider ( which covers all stages of CIs) + multipay standalone if you wish
2) Get multipay standalone and increase the sum assured
3) Wholelife + ECI rider + multipay standalone if you are looking for coverage till 99 with ECI and CI protection

 

[LordDeathZ]

So with the Aviva multipay on top of it at 50k , you are getting a coverage of

ECI : 50k x 2 ( from different pots )
CI : 150k less any ECI claims
Recurring CI : 100k x 2 (2 years waiting period)

Sufficient or not have to see your income Will the coverage now be able to sustain you in the event of a diagnosis? If your emphasis is on ECI/CI, you might want to bring the multipay's sum assured higher using the budget from the wholelife.

There are a few ways to do it, because I dont know your age so its hard for me to gauge the total premium outlay but

1) Get a term + ECI rider ( which covers all stages of CIs) + multipay standalone if you wish
2) Get multipay standalone and increase the sum assured
3) Wholelife + ECI rider + multipay standalone if you are looking for coverage till 99 with ECI and CI protection

ANB 28

10 char

 

[boredboiboi]

On top of it I was also recommend the Aviva multipay ci on top of it with $50k sum assured.

I supposed that should be sufficient for now and able to catch up with future potential income increase?

As mentioned, sufficient or not, only you can calculate because we dont know your income.
Plus whatever is enuf now might be enuf in future because income will go up. Thus the annual review.

There are many ways to bundle the plans for you, to work around your budget.
If the coverage is good, but not within your budget. Also have to adjust accordingly.

 

[LordDeathZ]

As mentioned, sufficient or not, only you can calculate because we dont know your income.
Plus whatever is enuf now might be enuf in future because income will go up. Thus the annual review.

There are many ways to bundle the plans for you, to work around your budget.
If the coverage is good, but not within your budget. Also have to adjust accordingly.

How much of one’s monthly income should be allocated to paying premiums?

 

[winthony]

ANB 28

10 char

So for example :

Wholelife
Base : 100k
Multiplier till age 70 : 400k
Total : 500k

Before 70
Death : 500k
TPD : 500k
ECI/CI(accelerated, ECI rider covers both ECI and CI) : 250k

After 70
Death : 100k + bonus
TPD : 100k + bonus
ECI/CI (accelerated, ECI rider covers both ECI and CI) : 50k

Annual Premium : $3407.50
Total outlay: $85,187.50

Term
Till age 70

Death : 500k
TPD : 500k
ECI/CI(Non - accelerated, ECI rider covers both ECI and CI) : 250k

Annual Premium : $2749.70
Total outlay :$115,487.4

The difference is due to the fact that the rider is not accelerated so sometimes it might make sense to get a wholelife instead! Just some rough quotation to highlight if you should choose to take up a wholelife or term But it varies from companies to companies as well as features!

 

[winthony]

How much of one’s monthly income should be allocated to paying premiums?

Normally would not want my client to fork out more than 20% to all the premiums

 

[boredboiboi]

How much of one’s monthly income should be allocated to paying premiums?

Max 5-10% of annual income for protection

 

[boredboiboi]

ANB 28

10 char

My example of quote

Wholelife
Base : 100k
Multiplier 5
Total coverage - 500k

Before 70
Death : 500k
TPD : 500k
ECI : 250k (covers all stages)

After 70
Death : 100k + bonus
TPD : 100k + bonus
ECI : 50k (covers all stages)

Annual Premium : $3017.31/year
Total premium: $75432.75

Term
Till age 70, coverage end at age 70 and after that no coverage

500k death/tpd, 250k eci - $1353.50/year
Total premium : $56847

 

[LordDeathZ]

So for example :
Term
Till age 70

Death : 500k
TPD : 500k
ECI/CI(Non - accelerated, ECI rider covers both ECI and CI) : 250k

Annual Premium : $2749.70
Total outlay :$115,487.4

My example of quote
Term
Till age 70, coverage end at age 70 and after that no coverage

500k death/tpd, 250k eci - $1353.50/year
Total premium : $56847

Which term plans are you both using? How come same coverage level but annual premium difference so huge one?

 

[boredboiboi]

Which term plans are you both using? How come same coverage level but annual premium difference so huge one?

I using company X
I compare across various insurers before posting which is cheapest
Even if it’s accelerated. I add $250k more death/tpd, its still cheaper.

For term $750k death/tpd and $250k eci - $1561.20/year
Even if accelerated, ur death/tpd still got 500k. And if death/tpd happen first, u got 750k death/tpd instead of 500k

 

[winthony]

Which term plans are you both using? How come same coverage level but annual premium difference so huge one?

Im using company A for both wholelife and term just to show you the difference

Another reason is because the eci rider that i quotated is not accelerated thus it is pricier as compared to a rider that is accelerated

 

[LordDeathZ]

Im using company A for both wholelife and term just to show you the difference

Another reason is because the eci rider that i quotated is not accelerated thus it is pricier as compared to a rider that is accelerated

What does it mean by accelerated?

How do I know if my policy has accelerated riders or non-accelerated riders?

 

[boredboiboi]

What does it mean by accelerated?

How do I know if my policy has accelerated riders or non-accelerated riders?

It depends on individual insurer riders. So far all are accelerated except company A.
Accelerated means if ur base is 500k and eci is 250k. Once eci/ci rider is being claim, ur base death/tpd becomes 250k (500k-250k)

 

[LordDeathZ]

It depends on individual insurer riders. So far all are accelerated except company A.
Accelerated means if ur base is 500k and eci is 250k. Once eci/ci rider is being claim, ur base death/tpd becomes 250k (500k-250k)

Ah I see. Learnt something new today!

 

[boredboiboi]

Ah I see. Learnt something new today!

Everyday will learn new things =)

 

[gwganteng]

Not sure if it's appropriate to ask in this thread. I'm looking to for insurance plan options (wholelife/term/CI/ECI) till 70 or 75 years.

Male, 38, Non Smoker, office work
Annual Income ~100k
2 sons (7 years and 4 years)

would appreciate any quotations on this. thanks

 

[boredboiboi]

Not sure if it's appropriate to ask in this thread. I'm looking to for insurance plan options (wholelife/term/CI/ECI) till 75 years.

Male, 38, Non Smoker, office work
Annual Income ~100k
2 sons (7 years and 4 years)

would appreciate any quotations on this. thanks

What plans do you have on hand now?
What coverage do you have on hand?
Or how much coverage are you looking at?
If wholelife multiplier till age 75. Only able to quote 2 companies as only 2 i know.
Term wise can quote alot. But need to know how much coverage u looking at
And how many years of payment term are you looking at?

Rule if thumb
Death/tpd 10 years if annual income , till kids turn adult if u r the sole bread winner.
Eci/ci - 3-5 times of annual income.

Use this to calculate and minus off ur existing coverage is what u need as rule of thumb.
If i anyhow quote a number now, its will be too anyhow already.

 

[gwganteng]

What plans do you have on hand now?
What coverage do you have on hand?
Or how much coverage are you looking at?
If wholelife multiplier till age 75. Only able to quote 2 companies as only 2 i know.
Term wise can quote alot. But need to know how much coverage u looking at
And how many years of payment term are you looking at?

Rule if thumb
Death/tpd 10 years if annual income , till kids turn adult if u r the sole bread winner.
Eci/ci - 3-5 times of annual income.

Use this to calculate and minus off ur existing coverage is what u need as rule of thumb.
If i anyhow quote a number now, its will be too anyhow already.

I have only very basic insurance plan from my company currently. The coverage is for death/tpd around ~200k and CI coverage is around ~50k. ECI/CI maybe looking on 150k-200k range.

What would be the suggested payment term years for my age ?

I'm opened to any suggestion. Thanks

 

[boredboiboi]

I have only very basic insurance plan from my company currently. The coverage is for death/tpd around ~200k and CI coverage is around ~50k. ECI/CI maybe looking on 150k-200k range.

What would be the suggested payment term years for my age ?

I'm opened to any suggestion. Thanks

The longest the term the lower the premium. But u prefer wholelife or term? Will quote you some example soon
For 300k death/tpd, 175k ci and 125k eci for example
38 is next or last birthday?

Example for your reference to guage which u prefer

Wholelife (300k death/tpd, 175k ci and 125k eci) (base 60k,35k,25k with multiplier 5). Coverage is base after age 70. If no claim, have cash value at any point of time till age 99.

Anb 38 male non smoker - $3012.37/year (25 years payment)
Anb 39 male non smoker - $3319.97/year (25 years payment)

Term - 300k death/tpd, 175k ci and 125k eci till age 70
Term is pay all the way till age 70 for this case as term is till 70, and coverage ends. Get back nothing if no claim.

Company T
Anb 38 male non smoker - $2331.30/year
Anb 39 male non smoker - $2468.70/year

Company X
Anb 38 male non smoker - $1964.36/year
Anb 39 male non smoker - $2083.56/year