DPI term +CI coverage comments?

[Tornesoul]

Looking to buy a DPI term insurance from AXA, interested in CI as well but the term and CI component cant be different e.g. 400k term must be with 400k CI if only in 1 plan. currently 25yo, M, nonsmoker
Felt that 400k CI is too much and costs quite abit

Thinking of going for 2 plans from AXA as follows:

1. 200k term+200k ci = $38.81/month
2. 200k term = $17.98/month

Total 400k term + 200k CI , approx $56.79/month

Already have H&S and SAF aviva 100k term.
any thoughts on this? or should i just go for 400term+400ci?

400k term alone would be $35.96/month
400k term + 400k CI would be approx $77.6/month

 

[Lewis.T]

1 and 2 together sounds good. If you feel 400k c.i is too much then you've actually already answered yourself!

 

[Shion]

200k should be enough since you have 100k aviva

 

[FP_IFA]

You just started work so 200k CI is good enough if you have a good H&S.

Also since you are pretty young, I suspect the AXA DPI is cheaper than your Aviva SAF term.

 

[Tornesoul]

Yup the axa dpi is indeed cheaper on a per 100k basis vs saf aviva.

Any reason that i should not get the 400k term or ci? Quite a few ppl saying to just stick to 200k. Thanks for the feedback. Actually with a full rider h&s, the ci is more to cover for lost of income and additional treatments? Correct me if im wrong.

In wat cases would a higher ci be justified? I.e. 400k.

Sent from Sent from where? using GAGT

 

[diediex]

i think term is capped at 400k for one company.

I am thinking of buying split policy also, 200K term, 200k term +CI, from AXA also. for 20 years.

 

[diediex]

You just started work so 200k CI is good enough if you have a good H&S.

Also since you are pretty young, I suspect the AXA DPI is cheaper than your Aviva SAF term.

i calculated saf is cheaper than axa after one hits 30 yr old. But then again, saf ci is an add on while axa is inclusive, so we aint really comparing apple to apple here, but yeah.

 

[Tornesoul]

i think term is capped at 400k for one company.

I am thinking of buying split policy also, 200K term, 200k term +CI, from AXA also. for 20 years.

yup, as u said its capped. glad to find someone thinking along the same line. any reason why u dont want 400k CI? and not until age 65?

 

[FP_IFA]

i calculated saf is cheaper than axa after one hits 30 yr old. But then again, saf ci is an add on while axa is inclusive, so we aint really comparing apple to apple here, but yeah.

Just comparing on the death term. The group term life vs the AXA DPI on death cover without the CI in the equation the AXA plan is cheaper.

 

[diediex]

yup, as u said its capped. glad to find someone thinking along the same line. any reason why u dont want 400k CI? and not until age 65?

well.. firstly, 400K with CI cost ard $480 per yr (20yrs term) for me (i'm 26 non smoker), while the split cost a 100 bucks cheaper.

Also, if i am unfortunate enough to the struck by one of the illness, with medishield and medisave, i would say a 100K CI is probably be enough for me to get by. But heck, insurance price is dirt cheap for youngster like us. I weighed the options and permutations and found this works best for me, in terms of the risk and rewards (this sounds morbid to talk it like an investment, but hey isn't insurance about hedging our life?)

Why 20 years and not to 65. If i have not researched wrongly, SAF group term offers the same death term premiums no matter what age you are, so i am putting my coins on my calculation that when i turned 46 and AXA coverage ended, I would simply switched to SAF Group term till i am 65 and it would be cheaper that way.

In addition, say I would get married in another 5-10 years time, I would probably throw in a 50K sum assured for SAF group term just so my spouse and kids can enjoy the benefits. And then top it up when my AXA ends.

Else, if I calculated/researched wrongly, I would have 20 years time to come up with another plan when i hit 46 years old. Maybe, when i am 46, with BTIR, I would have the financial freedom enough to be free of the need for insurance!

 

[Jwlng]

Firstly, AVIVA SAF GTL is not going to be around for long. It's anybody's guess which insurer will be taking over and the exact terms and conditions tied to it.

Secondly, you're assuming that you're going to be absolutely free of illness at age 46 such that you will be able to switch to a cheaper insurer(in your example the SAF GTL). I'm not cursing you, but what if you're not in a clean bill of health? Then you will face extensive underwriting to get the same coverage and hope you don't pay more... That is a big gamble to take. Since you've correctly pointed out that insurance price is cheap for your age, wouldn't you want to provide some guarantee for yourself while you are still fit as a fiddle?

If you are price sensitive, I would recommend you choose a lower coverage but up to age 65. This will give you a good level of coverage until you get married or have kids etc. That will be the time you may want to increase your coverage again, either through another term insurance or life insurance.

Keep in mind that insurance is a game of numbers and they will periodically adjust their premiums based on morbidity rates, medical costs claims experience etc.

 

[Shion]

Hmm ? SAF GTL changing ?

 

[diediex]

Jwlng, excellent points there! I m gonna rethink my plans (i havnt bought the dpi yet). Maybe i would do what the above people has recommended, 200k ci to 65 yr old.

 

[Jwlng]

Hmm ? SAF GTL changing ?

Yup. MINDEF also not stupid to know that AVIVA's not giving the best deal currently.

 

[Tornesoul]

How much CI is too much if someone has a full rider h&s plan?

Ci would be to cover loss of income /additional treatments / other costs like caregiver fees?

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[Tornesoul]

quick qns regarding DPI CI, as I understand it only covers 30 CI instead of the full list from LIA which can be found here.

http://www.lia.org.sg/node/3917

should be this be a major consideration?

 

[Jwlng]

It's a gamble that you are taking for yourself. If you somehow forsee that there's a chance of contracting the remaining CIS, then DPI may not be for you.

 

[chopra]

Looking to buy a DPI term insurance from AXA, interested in CI as well but the term and CI component cant be different e.g. 400k term must be with 400k CI if only in 1 plan. currently 25yo, M, nonsmoker
Felt that 400k CI is too much and costs quite abit

Thinking of going for 2 plans from AXA as follows:

1. 200k term+200k ci = $38.81/month
2. 200k term = $17.98/month

Total 400k term + 200k CI , approx $56.79/month

Already have H&S and SAF aviva 100k term.
any thoughts on this? or should i just go for 400term+400ci?

400k term alone would be $35.96/month
400k term + 400k CI would be approx $77.6/month

U actually already answered urself.
Jus dont 4get u also have CPF_DPS AND next time u would have compulsory HDB reducing mortgage term when u get a house.