AIA Guaranteed Protect Plus

[boredboiboi]

thanks for the help explaining the method.

hi peeps, please take a look at the attached BI for my 12 yo & provide comments & guidance as i am unsure if i should continue with the policy.
many thanks

https://pdfhost.io/v/canXxTig_eCarepdf.pdf

I there should be more pages to this. This page only shows the death benefit. And looking at it seem like you bought a wholelife plan with base 50k and multiplier of 2 which means a min death benefit of 100k before the age of 65. What is the premium you are paying and pay for how many years? Is death the only coverage? There should be 1 more page saying what is the coverage you have.

 

[a4973]

I there should be more pages to this. This page only shows the death benefit. And looking at it seem like you bought a wholelife plan with base 50k and multiplier of 2 which means a min death benefit of 100k before the age of 70.

hi boredboiboi, thanks for chiming in.
this is the complete BI generated via online. it does say page 3 of 3. annual premium is $1193.50 pay 12 years

 

[boredboiboi]

hi boredboiboi, thanks for chiming in.
this is the complete BI generated via online. it does say page 3 of 3.

The initial BI? unless the coverage is only death and the surrender value is usually very low for first years. Doesnt have any eci or ci?. This few pages hard to share what are the coverage such as tpd,ci or eci. If only death coverage, i would suggest relook into a new plan that covers your kid more comprehensive. I generated few weeks for a client kid, its about less than $1500 for 25 years premium for a (example) $125k coverage(with booster) for death/tpd/eci(all stages) till age 70 for booster.

 

[a4973]

ok this is the initial BI

https://imgur.com/a/CcRjJJr

this is the latest generated BI

https://pdfhost.io/v/canXxTig_eCarepdf.pdf

 

[boredboiboi]

ok this is the initial BI

https://imgur.com/a/CcRjJJr

this is the latest generated BI

https://pdfhost.io/v/canXxTig_eCarepdf.pdf

Image not clear for the initial BI. Looking at it, i would say that plan only covers death/tpd and CI(late stages). I would suggest to relook at what the markets can covers, if you want to covers your kid for some form of ci and eci. Just my 2 cents worth =). With the same amount, i could get a coverage of 100k-125k of death/tpd/eci(all stages) coverage.

 

[a4973]

This was something my wife bought from her BIL. I'm trying to find any justification to keep the policy so what are the pro considerations for parents to buy such policy for child?
Not trolling really want to know why would parents insure a child's life?

Sent from Nextbit ROBIN using GAGT

 

[boredboiboi]

This was something my wife bought from her BIL. I'm trying to find any justification to keep the policy so what are the pro considerations for parents to buy such policy for child?
Not trolling really want to know why would parents insure a child's life?

Sent from Nextbit ROBIN using GAGT

Usually its a gift from from the parent to child. And its very cheap to buy when young. But i dont understand why nv add on eci. A child death will not have any financial burden to the parents, but tpd,ci and eci does have some financial impact to the parents. Thus my opinion is not more on the death coverage but looking at the tpd,ci and eci coverage.

 

[a4973]

Usually its a gift from from the parent to child. And its very cheap to buy when young. But i dont understand why nv add on eci. A child death will not have any financial burden to the parents, but tpd,ci and eci does have some financial impact to the parents. Thus my opinion is not more on the death coverage but looking at the tpd,ci and eci coverage.

So by your expert understanding of the images I've posted, it's certain that eci is lacking? I would like to be certain before I let my wife know.

Sent from Nextbit ROBIN using GAGT

 

[boredboiboi]

So by your expert understanding of the images I've posted, it's certain that eci is lacking? I would like to be certain before I let my wife know.

Sent from Nextbit ROBIN using GAGT

Yup from looking at it, there is no eci. U can double check with your bil since he sold the policy to your wife. The ** below on the 1st page only say its critical illness.

 

[curious_moo]

Yup from looking at it, there is no eci. U can double check with your bil since he sold the policy to your wife. The ** below on the 1st page only say its critical illness.

I second that. As the product code for early CI rider is ECPL (Early Critical Protector Life), the current one showing is just CPL.

 

[a4973]

Thanks curious_moo & boredboiboi for your help

Sent from Nextbit ROBIN using GAGT

 

[studi92]

Hi bro,

Guaranteed Protect Plus is a whole life plan and whole life plan is to insure the person in case of death,TPD and CI and this lump sum will then be paid out.

Since your Wife is the payor of the Guaranteed Protect Plus policy a payor benefit rider should be added in case anything happens to the payor the premium will be waived. ECPL rider should also be included instead of cpl as ECPL cover early critical illness whereas CPL rider covers only major critical illness. People will want to claim at an early stage in the event of CI and not when things get really serious.

If you are looking to do a savings plan for your child, you should look at an endowment plan.

Although whole life plan helps you to grow your cash value over time and when you want to access the cash value it is called a policy loan whereas an endowment plan gives you the flexibility to access the cash value anytime when you need it. You just draw out the accumulated value in your policy and let the remainder value to grow.

If you don’t mind we can do a meet up to address your concerns or PM me to know more details.

 

[a4973]

Usually its a gift from from the parent to child. And its very cheap to buy when young. But i dont understand why nv add on eci. A child death will not have any financial burden to the parents, but tpd,ci and eci does have some financial impact to the parents. Thus my opinion is not more on the death coverage but looking at the tpd,ci and eci coverage.

hi, actually our intention for insuring our daughter is to kick start her having at least 1 protection policy of her own that will provide protection for her own family next time & as buying at younger age, premiums are cheaper. so yes as a gift.
its unthinkable for us parents to even consider any misfortune that may befall her at this young age where she or us would even want to benefit from the coverage payout.
your points about the financial impact due to TPD / ECI are very valid so we would be considering enhancing the policy if it can be within a reasonable bump in premium.

anyway 1 more query.

since this is a limited pay 12 years premium term 91 years coverage term & my wife is the Owner of the policy, will this arrangement still carry on as is even if my wife is no longer with us at some time in the future? or will the policy have to be transferred to the surviving parent or to the insured herself?

thanks for patiently helping me with this.

 

[boredboiboi]

hi, actually our intention for insuring our daughter is to kick start her having at least 1 protection policy of her own that will provide protection for her own family next time & as buying at younger age, premiums are cheaper. so yes as a gift.
its unthinkable for us parents to even consider any misfortune that may befall her at this young age where she or us would even want to benefit from the coverage payout.
your points about the financial impact due to TPD / ECI are very valid so we would be considering enhancing the policy if it can be within a reasonable bump in premium.

anyway 1 more query.

since this is a limited pay 12 years premium term 91 years coverage term & my wife is the Owner of the policy, will this arrangement still carry on as is even if my wife is no longer with us at some time in the future? or will the policy have to be transferred to the surviving parent or to the insured herself?

thanks for patiently helping me with this.

You are welcome.

New plan to increase have to sit down and plan accordingly and not over stretching your budget, the main concern is to have yourself and your wife fully covered then follow by your child. The most impact will be the both of you be it any of the conditions mentioned happen.

The ownership of the plan will follow her will/estate planning, or when the child turn adult then your wife can transfer the ownership to the child which by then should be already fully covered.

 

[alatus]

I've a question about this policy. A couple of months ago, an agent approached me and recommended the Protect Plus II plan to me. At first, it looked good. But after some research, I started to find that it's so much more expensive compared to other insurers.

In my case, my annual premium is slightly over $8200 for a base coverage of $100k. Granted, it includes a 2x booster, which expires after a certain age, in addition of few riders. The riders included TPD, CI and an extra coverage of $100k. So, before age 75, the max coverage is $300k. After age 75, the max coverage is $200k and the guaranteed surrender value is only left with around $66k at age 76.

I'm in my mid 30s and the payment period over 20 years will mean I am paying over $164k for the whole policy!

In comparison, I've a friend who signed his life insurance with Aviva with the same base coverage of $100k but is only paying around $5600 a year for 15 years with TPD and CI too, and in addition to some other 4x booster riders which I'm not exactly sure about its details. To be fair, he bought it when he bought it in his early 30s. Still, the difference is huge!

Is the Protect Plus plan a good and worthy policy to buy given that it's so expensive?
Is the policy so differently better than other insurers that it costs so much more?

 

[boredboiboi]

I've a question about this policy. A couple of months ago, an agent approached me and recommended the Protect Plus II plan to me. At first, it looked good. But after some research, I started to find that it's so much more expensive compared to other insurers.

In my case, my annual premium is slightly over $8200 for a base coverage of $100k. Granted, it includes a 2x booster, which expires after a certain age, in addition of few riders. The riders included TPD, CI and an extra coverage of $100k. So, before age 75, the max coverage is $300k. After age 75, the max coverage is $200k and the guaranteed surrender value is only left with around $66k at age 76.

I'm in my mid 30s and the payment period over 20 years will mean I am paying over $164k for the whole policy!

In comparison, I've a friend who signed his life insurance with Aviva with the same base coverage of $100k but is only paying around $5600 a year for 15 years with TPD and CI too, and in addition to some other 4x booster riders which I'm not exactly sure about its details. To be fair, he bought it when he bought it in his early 30s. Still, the difference is huge!

Is the Protect Plus plan a good and worthy policy to buy given that it's so expensive?
Is the policy so differently better than other insurers that it costs so much more?

Since its only few months. Compare and and make changes for the huge savings over the 20 years if your direction is already towards wholelife plan. Where most of the mid to late 30s might contemplate between term and wholelife for the premium difference.

 

[alatus]

Since its only few months. Compare and and make changes for the huge savings over the 20 years if your direction is already towards wholelife plan. Where most of the mid to late 30s might contemplate between term and wholelife for the premium difference.

Is a term or wholelife plan better? I was told that I would get most of my money back with wholelife plan whereas, in a term plan, I will not get anything back.

 

[boredboiboi]

Is a term or wholelife plan better? I was told that I would get most of my money back with wholelife plan whereas, in a term plan, I will not get anything back.

For myself, i get a wholelife plan. Both covers you, isnt really which is better but the premium difference and 1 with returns and 1 without. Buy term if you know how to invest and invest the rest.

 

[BBCWatcher]

I was told that I would get most of my money back with wholelife plan whereas, in a term plan, I will not get anything back.

No, when you die you are not getting anything except a cremation, burial, and/or the most important seat at the insects’ dining table. You certainly won’t have any use for mere money.

Your dependent(s) receive any (non-surrendered) life insurance payouts, not you. If you have at least one dependent who relies on your income from work, if your death would seriously threaten their continued basic lifestyle, and if you don’t have sufficient wealth accumulated to self-insure, then you ought to get some life insurance. For most people term life insurance works well, because it covers the period when their dependents are dependent — children who haven’t left the nest, as a notable example. A spouse who cannot support the whole household by him/herself as another notable example.

If you do at least a decent job saving, and if you prudently invest your savings, you’ll always have a better result for your heir(s) than a whole life insurance policy can produce. The “investment” portion of whole life insurance has a very high cost structure. However, there are some people who won’t save anything unless they have a whole life premium bill in front of them. There are some people who spend every spare dollar (and sometimes more) on tobacco, alcohol, casino gambling, lotteries, prostitutes, and/or annual iPhone Maxi Super Pros, as examples. If that’s your inclination, OK, maybe you need the “power” of a premium bill to save anything. And if you do need to save something (not everyone does, but if) then maybe that’s the best you can do.

 

[gdc2005]

Critical Illness

Hi all, need some advice regarding the AIA Guaranteed Protect Plus (II) with Early Critical Protector Life (ECPL) (II). It’s a $50K policy for a mid fifties person. Pay about $2000 for 20 years.
Is this policy suitable for a person at this age? And is it worth to get if the person already has $50K savings in the bank?
Thanks.