My view is payout in this current low interest climate is pointless and better to remain as death benefit for my nominated beneficiaries which may be sometime later when the economy picks back up. Thanks for responding.
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AIA Prime Life
- Thread starter luvpraline
- Start date
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Who Replied?My guess is your death benefit is fully accelerated by the CI rider.
PLLLLLEASE take a look at the T&Cs. I think in most policies, there will be clauses to say that CI claims must be made within 6 months from diagnosis.
Personally, I think since you have paid for the CI rider to accelerate the death benefits, if you are already eligible to claim, just claim. With the payout, you are free to use it for your medical fees, or invest to continue to grow the pot. The death benefit, at best, will continue to grow at <4% per annum, so it is better to DIY and invest it yourself.
In addition, don't forget AIA can always cut the terminal bonus in future and so even if you choose to continue the plan, your death event payout might also be reduced.
Make sure you have your LPA and WILL setup and ensure whatever you invest in, can be easily/conveniently distributed eventually.
PLLLLLEASE take a look at the T&Cs. I think in most policies, there will be clauses to say that CI claims must be made within 6 months from diagnosis.
Personally, I think since you have paid for the CI rider to accelerate the death benefits, if you are already eligible to claim, just claim. With the payout, you are free to use it for your medical fees, or invest to continue to grow the pot. The death benefit, at best, will continue to grow at <4% per annum, so it is better to DIY and invest it yourself.
In addition, don't forget AIA can always cut the terminal bonus in future and so even if you choose to continue the plan, your death event payout might also be reduced.
Make sure you have your LPA and WILL setup and ensure whatever you invest in, can be easily/conveniently distributed eventually.
Actually I have asked my agent the same question and he said so far in his long career he has not encountered any client that doesn't want to claim even when the claim criteria is met. He did say that if did not claim the CI and subsequently no matter how long later when death occurs and in the ensuing processing of the death claim the CI incident becomes known, the insurer will backdate the claim to the CI incident, payout According to the CI criteria and refund the portion of the unused premiums without interest. Have anyone here encountered or heard of such thing? Thanks all.
Yes I have heard of the above but everything boils down to the T&Cs.Actually I have asked my agent the same question and he said so far in his long career he has not encountered any client that doesn't want to claim even when the claim criteria is met. He did say that if did not claim the CI and subsequently no matter how long later when death occurs and in the ensuing processing of the death claim the CI incident becomes known, the insurer will backdate the claim to the CI incident, payout According to the CI criteria and refund the portion of the unused premiums without interest. Have anyone here encountered or heard of such thing? Thanks all.
This is precisely why insurance/financial planning is something that is very personal and you need to know clearly what you want.
My guess is at the point when you bought it, the objective was to have a payout in the event of the CI but right now, you are thinking you probably don't need the money, so might as well leave it as a bequest. I can understand where you are coming from but you need to know ..not claiming has its "risk" as well.
Yes, your guess is right on!Yes I have heard of the above but everything boils down to the T&Cs.
This is precisely why insurance/financial planning is something that is very personal and you need to know clearly what you want.
My guess is at the point when you bought it, the objective was to have a payout in the event of the CI but right now, you are thinking you probably don't need the money, so might as well leave it as a bequest. I can understand where you are coming from but you need to know ..not claiming has its "risk" as well.
So the logical way forward if the CI criteria is met at some point in the future will be to claim and do something constructive with the funds to grow it further as like you said the DB could also be cut as nothing is guaranteed until it is declared. Thanks and helpful as always Soneat!!
The annual bonus, once declared, is guaranteed.Yes, your guess is right on!
So the logical way forward if the CI criteria is met at some point in the future will be to claim and do something constructive with the funds to grow it further as like you said the DB could also be cut as nothing is guaranteed until it is declared. Thanks and helpful as always Soneat!
The problem is the terminal bonus. This company have the habit of cutting the terminal bonus.
Take care of yourself and let nature takes it course. Best wishes.
Thanks for your well wishes and all the best to you as well!!The annual bonus, once declared, is guaranteed.
The problem is the terminal bonus. This company have the habit of cutting the terminal bonus.
Take care of yourself and let nature takes it course. Best wishes.
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