AIA US$ G15 - Worth it?

[maladalaxx]

Hi I am 23/ 24 this year. Married with 3 young kids, aged 4 months, 16 months and 26 months. I am a vegetarian, no operations except the delivery of the kids in my lifetime. I do not smoke. I am healthy and passed all health check ups with flying colors. I do not have family history of Cancer.

I am intending to get an insurance plan for myself, to keep it as a safety precaution for the kids, my agent proposed the followings:

Sum Assured: USD $100,000
Critical Illness Cover: USD $50,000
Years of Policy till Maturity: 15 years
Annual Premium: USD $2183.50 (SGD $2,707.54 @ 1.24 Exchange Rate)

It will breakeven at Year 8/ Age 31:
Premium Paid Till Date: USD $15,408
Return Cash Value: USD $15,644

Year 15/ Age 38:
Premium Paid Till Date: USD $28,890
Return Cash Value: USD $35,957

Year 30/ Age 53:
Premium Paid Till Date: USD $28,890
Return Cash Value: USD $80,089

And also, I intend to get a term plan so, the agent proposed:

a) C3 - AIA Complete Critical
Sum Assured: $100,000 (cover for $200,000)
Annual Premium: $1,102

b) AIA ARL (Term)
Sum Assured: $100,000
Covers for Death, TPD & Critical Illness
Annual Premium: $304

c) Glow of Life (Women Illness Free Bi-Annual Medical Check Up)
Sum Assured: $25,000
Premium: $181.90


Can anyone tell me if the above proposed is ok as I understand USD is volatile. Also, which term plan to take?

If not, anyone can recommend me good plans and offer me their sincere comments?

 

[bloodsucker]

Hi, I'll share my sincere comments with you. I've done plenty of research on insurance, so if your agent disagrees with me, I'll be more than willing to teach him/her cos most agents do not know how the numbers in the Benefit Illustration work.

Your first policy should be an endowment policy. It does not make any sense because you say it will mature in 15 years yet you provide number up to 30 years of the policy? If so, then it is not 15 years to maturity. Rather, it is limited payment for 15 years. If so, then it is probably a limited payment whole life plan. Your annual premium and your premium paid to date does not make sense. You have to send me your Benefit Illustration for me to calculate accurately.

I've calculated the numbers with what you provided, and I realised that your agent must have falsely misrepresented to you the numbers. He/she obviously did not inform you that the returns ARE NOT guaranteed. The returns must have been based upon a high PROJECTED return. The returns are too good to be true for the 15th-30th year. And I know that NO insurance company can possibly hit this kind of return in an extended period. It's not impossible, but the company will definitely eat into your profits during that period, hence you will never see that amount. Do note that it is generally not wise to buy a US$ denominated policy unless you can be certain that the US$ will continue appreciating against SGD. Or unless the policy is hedged against foreign exchange risk. Which I doubt. But I can tell you from an outsider point of view that this policy is NOT OK!!! Your agent plainly did not tell you the truth about the returns, and if he/she really promised you those numbers, please please report that person to MAS for false misrepresentation. He/she has to tell you that these numbers are only projected. If he didn't, it means that he himself is going to guarantee the returns LOL.

For the term that your agent proposed, it is too expensive. If your husband have already served NS or is serving NS in the army, get him to buy for you the SAF Group Term life insurance. For the spouse, it only costs him $10/mth to insure you $100,000 for life and TPD. Another $10/mth will insure another $100,000 of critical illness. Total premium: $240 per year. If all you want is to protect your kids, you do not need to spend the thousands of dollars a year to do so. You can have similar coverage for 10-20 times less cost. Please PM me if you want me to help you calculate the numbers in detail.

Thanks

 

[Mecisteus]

at one look, i can assure you something is definitely not right with your insurance proposals. all of the plans are from AIA. my advice is to look beyond this company. see what other policies from other companies can offer you.

 

[kebinu]

Do you have any current insurance? Did the agent recommend anything else?

If no to both, skip this agent.

1. Hospital plan!

 

[yoshihara]

Do you have any current insurance? Did the agent recommend anything else?

If no to both, skip this agent.

1. Hospital plan!

Yes hospitalisation, accident then life + earlystage then wealth accumulation.

 

[lzydata]

I don't see why your agent should recommend a USD policy first, or at all, to somebody with your requirements. It sounds like a double-commission product of the month or something.

 

[hhanzorion]

Hi I am 23/ 24 this year. Married with 3 young kids, aged 4 months, 16 months and 26 months. I am a vegetarian, no operations except the delivery of the kids in my lifetime. I do not smoke. I am healthy and passed all health check ups with flying colors. I do not have family history of Cancer.

I am intending to get an insurance plan for myself, to keep it as a safety precaution for the kids, my agent proposed the followings:

Sum Assured: USD $100,000
Critical Illness Cover: USD $50,000
Years of Policy till Maturity: 15 years
Annual Premium: USD $2183.50 (SGD $2,707.54 @ 1.24 Exchange Rate)

It will breakeven at Year 8/ Age 31:
Premium Paid Till Date: USD $15,408
Return Cash Value: USD $15,644

Year 15/ Age 38:
Premium Paid Till Date: USD $28,890
Return Cash Value: USD $35,957

Year 30/ Age 53:
Premium Paid Till Date: USD $28,890
Return Cash Value: USD $80,089

And also, I intend to get a term plan so, the agent proposed:

a) C3 - AIA Complete Critical
Sum Assured: $100,000 (cover for $200,000)
Annual Premium: $1,102

b) AIA ARL (Term)
Sum Assured: $100,000
Covers for Death, TPD & Critical Illness
Annual Premium: $304

c) Glow of Life (Women Illness Free Bi-Annual Medical Check Up)
Sum Assured: $25,000
Premium: $181.90


Can anyone tell me if the above proposed is ok as I understand USD is volatile. Also, which term plan to take?

If not, anyone can recommend me good plans and offer me their sincere comments?

The fundamental of Life Planning is to tackle the 4 disturbing problems

1. Hospitalisation plan ( Deduct CPF medisave, coverage can up to 100% admitted Hospital Cost and cancer consultation)
P.s For child hospitalisation, you can include common illness like Hand Foot Mouth Disease

2. Personal Accident ( Simple and straight forward, medical expenses outpatient reimbursement)

3. Death and Total Permanent Disability ( this can be found in any Whole Life policy, for Great Eastern, $100 budget can get you $150k coverage)

4. Critical Illness ( Most of the policy in the market requires you to be in Stage 3 of your illness then you can claim, however, in Great Eastern, we have Early Critical Payout, which pays a % of the sum assured when you are in Stage 1)

Only after you are done with the above protections, you can then consider for 1) SAVING and Investment 2) Child Education 3) Retirement

I am not doing sales here, but if you were my client, this is the plan chart to present to you.

 

[hhanzorion]

You can set aside 10-20% of your income for insurance protections.

If other plans added in, and exceed 20%, i will not recommend you to take at the moment

 

[FP_IFA]

If you are going to get a life plan, why get a US$ plan? Why would you want to open your life plan to currency risk? If there is a need to claim, do you think you can you said "oh **** US$ is weak now so I claim later"?

There are so many old AIA US$ plans that are now worth only 2/3 of its value because of the weakening of US$...

 

[Chris008]

Don't trust AIA...check out this case:
http://forums.hardwarezone.com.sg/e...-insurance-endowment-policy-scam-3965177.html

 

[bloodsucker]

You can set aside 10-20% of your income for insurance protections.

If other plans added in, and exceed 20%, i will not recommend you to take at the moment

Anything above 10% is too much. If proper planning is done, INSURANCE PROTECTION should never ever exceed 10%, even with whole life policy involved. Anything more, and it's obvious the agent is out to eat your money. Remember, insurance is to protect you against untimely death. Anything else the agent spins is pure marketing and sales garbage.

 

[maladalaxx]

Thanks all, I will look into other companies. Anyone have good insurance plans, do let me know. I do not have insurance plans as of now. Please PM. Thanks!

 

[matchy]

dun take the USD plan...

 

[maladalaxx]

Hi all,

I am bumping up this post to seek advice.

I had started this G10 plan for my girl since 2010 however due to the taxing amount that I need to defray I only paid the premiums for 5 years (2010 - 2014) plus I have 3 kids in total. The premium for this plan was $3,080. So apparently, I had put in 15k thus far. For Year 2014 to 2015; it was under "cashback/loan scheme" where the amount of cashback I used it as premium and I went to relook the plan review that I got AIA to send me. Sum issued is only at $100,000. The break even year will be at Year 22 of the policy year which is like in Year 2032, which is 15 years from now.

Should I surrender this plan or bite through another 5 years to finish servicing this plan and wait another 10 years after finishing the service of the plan to BREAK even the plan.

If I surrender now, the cash return is at 3k which is 1/5 of the 15k I paid for.

Need advice.

Note: My daughters are covered under Aviva for Hospitalization Plan. Fyi, and the agent who sold me the plan had left and the agent who took over also left. I transferred the plan to a friend.

Hi I am 23/ 24 this year. Married with 3 young kids, aged 4 months, 16 months and 26 months. I am a vegetarian, no operations except the delivery of the kids in my lifetime. I do not smoke. I am healthy and passed all health check ups with flying colors. I do not have family history of Cancer.

I am intending to get an insurance plan for myself, to keep it as a safety precaution for the kids, my agent proposed the followings:

Sum Assured: USD $100,000
Critical Illness Cover: USD $50,000
Years of Policy till Maturity: 15 years
Annual Premium: USD $2183.50 (SGD $2,707.54 @ 1.24 Exchange Rate)

It will breakeven at Year 8/ Age 31:
Premium Paid Till Date: USD $15,408
Return Cash Value: USD $15,644

Year 15/ Age 38:
Premium Paid Till Date: USD $28,890
Return Cash Value: USD $35,957

Year 30/ Age 53:
Premium Paid Till Date: USD $28,890
Return Cash Value: USD $80,089

And also, I intend to get a term plan so, the agent proposed:

a) C3 - AIA Complete Critical
Sum Assured: $100,000 (cover for $200,000)
Annual Premium: $1,102

b) AIA ARL (Term)
Sum Assured: $100,000
Covers for Death, TPD & Critical Illness
Annual Premium: $304

c) Glow of Life (Women Illness Free Bi-Annual Medical Check Up)
Sum Assured: $25,000
Premium: $181.90


Can anyone tell me if the above proposed is ok as I understand USD is volatile. Also, which term plan to take?

If not, anyone can recommend me good plans and offer me their sincere comments?

 

[dendii]

Let me get it clear...

$3,080 pay for 15 years coverage for 100k whole life?

Do you have any other insurance besides Aviva Hospitalization for your family and this plan since many years ago?

Hi all,

I am bumping up this post to seek advice.

I had started this G10 plan for my girl since 2010 however due to the taxing amount that I need to defray I only paid the premiums for 5 years (2010 - 2014) plus I have 3 kids in total. The premium for this plan was $3,080. So apparently, I had put in 15k thus far. For Year 2014 to 2015; it was under "cashback/loan scheme" where the amount of cashback I used it as premium and I went to relook the plan review that I got AIA to send me. Sum issued is only at $100,000. The break even year will be at Year 22 of the policy year which is like in Year 2032, which is 15 years from now.

Should I surrender this plan or bite through another 5 years to finish servicing this plan and wait another 10 years after finishing the service of the plan to BREAK even the plan.

If I surrender now, the cash return is at 3k which is 1/5 of the 15k I paid for.

Need advice.

Note: My daughters are covered under Aviva for Hospitalization Plan. Fyi, and the agent who sold me the plan had left and the agent who took over also left. I transferred the plan to a friend.

 

[maladalaxx]

Hihi its to pay the annual premium of $3,080 for 10yrs and covered for life. Its a limited plan policy.

Let me get it clear...

$3,080 pay for 15 years coverage for 100k whole life?

Do you have any other insurance besides Aviva Hospitalization for your family and this plan since many years ago?

 

[dendii]

I will suggest paying the remaining 5 years and have a WL coverage. Whether 20 or 30 years break even should not be taken into consideration since you will need this coverage regardless whether from your investment or somewhere in future.

Get a term to enhance your coverage though. 100k death and 50k ci with 3 kids is severely underinsured imo

Hihi its to pay the annual premium of $3,080 for 10yrs and covered for life. Its a limited plan policy.

 

[soneat]

1. You purchased a limited pay (10 years) for your child/children (and not yourself right?) and you are already 1/2 way there. To give up now is pretty wasteful. As such, you should try to continue if you finances / cashflow permits.
2. 3080 per year for 10 years for 3 children or just for one of the child? If its for 3 children, it seems too cheap. If its for 1 child, its awfully expensive (compared to other insurer).
3. Unfortunately, AIA is the most expensive (or one of the most expensive), projected breakeven is always >20 years.

 

[maladalaxx]

Hihi~~ Just to clarify:

1. Currently the policy is on policy loan.
2. Is for my child not myself.
3. It's for 1 child.

So I should just continue and not to give up right? Yup maturity is projected at Year 20. And I am having a hard time now.

1. You purchased a limited pay (10 years) for your child/children (and not yourself right?) and you are already 1/2 way there. To give up now is pretty wasteful. As such, you should try to continue if you finances / cashflow permits.
2. 3080 per year for 10 years for 3 children or just for one of the child? If its for 3 children, it seems too cheap. If its for 1 child, its awfully expensive (compared to other insurer).
3. Unfortunately, AIA is the most expensive (or one of the most expensive), projected breakeven is always >20 years.

 

[soneat]

Hihi~~ Just to clarify:

1. Currently the policy is on policy loan.
2. Is for my child not myself.
3. It's for 1 child.

So I should just continue and not to give up right? Yup maturity is projected at Year 20. And I am having a hard time now.

1. On policy loan ...means you need to repay the loan as well with interest. Probably 6% or more.
2. Noted its for only 1 child. It's very expensive (compared to other insurer) considering the entry age and coverage.
3. By right, you should have ample $ before you buy any whole life policy and in buying whole life policy, the intention is really for whole life protection rather than surrender value.

For your case, you might/should check with AIA on what options is available for you.
a) Repay your policy loan and continue with the policy.
b) Terminate the policy and just get the surrender value.
c) Convert the policy into ETL (Extended Term Life) if there's such an option - basically it just means that the policy becomes a term policy providing the same coverage for a certain number of years. You do not need to pay any more premium and you do not get back anything at all.
d) Convert the policy into RPU (Reduced Paid Up) if there's such an option - basically the policy becomes a non-par plan and coverage continues at a reduce sum assured - you do not have to pay anymore.

My old AIA policies have these ETL/RPU features.

Whole life policies typically dont have maturity dates, except a couple which will end at 99 or 100 years old, where the projected surrender value and projected protection value will converge.

The so-call maturity that you mention is the day where the projected surrender value will breakeven with the cumulative premium paid to date. That's not the policy "maturity" (date).