Need help with whole life plan

[teo.wayne]

Not sure if this is the right space to post this. Need some urgent help with my whole life plan. I came across AIA's Guaranteed Protect Plus (II). Any AIA agent online? I'm looking at a total death coverage of 1.5m and ECI 600k after multiplier. 35yo male.

 

[xtwis7]

You’ll be flooded with PMs now.

First question, that’s some pretty substantial figures you’re looking at. What do you have to begin with?

There’s actually a cap for ECI payout so how did you derive $600k for yourself?

 

[teo.wayne]

You’ll be flooded with PMs now.

First question, that’s some pretty substantial figures you’re looking at. What do you have to begin with?

There’s actually a cap for ECI payout so how did you derive $600k for yourself?

I based it on 10x of annual salary.
600K is just an idea, covers around 4 years of my income loss. Not alot too?
I mean i really dk.

 

[dendii]

Why whole life and why AIA Guaranteed Protect?

What other insurances do you have? Do you do your own investment? Any family right now? Housing? What is your comfortable amount?

For the whole life coverage you are looking at the premium is not going to be cheap.

 

[xtwis7]

You should seriously consider the Disability Income to complement your payout for ECI/CI since you seem to be more concerned about income loss.

Are you going for AIA because their ECI payout is one of the highest capped? Though it’s still well below your intended amount of $600k.

More importantly, what are the liabilities that will be affected should you lose this income?

Dependents? Housing? Other loans?

I based it on 10x of annual salary.
600K is just an idea, covers around 4 years of my income loss. Not alot too?
I mean i really dk.

 

[limster]

Why whole life and why AIA Guaranteed Protect?

Because this is a newly created account whose only purpose is to advertise for AIA?

 

[Mecisteus]

I'm curious.

Why the urgency? Intending to claim soon?

You will be committing a big sum of money monthly.

So better think carefully.

 

[limster]

I'm curious.

Why the urgency? Intending to claim soon?

year end coming, agents haven't fulfilled their quota... need to advertise without getting banned

 

[teo.wayne]

Why whole life and why AIA Guaranteed Protect?

What other insurances do you have? Do you do your own investment? Any family right now? Housing? What is your comfortable amount?

For the whole life coverage you are looking at the premium is not going to be cheap.

Hospitalisation and pa?
Investment - 2 properties and some shares.
Wife, kid otw.

yes i know it's not going to be cheap.

 

[teo.wayne]

You should seriously consider the Disability Income to complement your payout for ECI/CI since you seem to be more concerned about income loss.

Are you going for AIA because their ECI payout is one of the highest capped? Though it’s still well below your intended amount of $600k.

More importantly, what are the liabilities that will be affected should you lose this income?

Dependents? Housing? Other loans?

Sorry but i dont quite understand what has disability income got to do with CI.
Could you explain?

If not AIA, then? I'm open to other insurers but just not GE.
I alr have the quote for Aviva and Manulife.

 

[JuniorLion]

Sorry but i dont quite understand what has disability income got to do with CI.
Could you explain?

If not AIA, then? I'm open to other insurers but just not GE.
I alr have the quote for Aviva and Manulife.

Why not GE?

 

[ELKYme]

Good questions.

I know of guys that are heavily insured for no good reasons. My personal opinion is that when we grow older and have no debt responsibilities + kids have left the coop, we don’t really need a lot of insurance.

As for ECIs, if already have a buffer either in equities or bonds that’s equivalent to 3-4 years of our income, we don’t need ECIs...it’s really expensive.

You should seriously consider the Disability Income to complement your payout for ECI/CI since you seem to be more concerned about income loss.

Are you going for AIA because their ECI payout is one of the highest capped? Though it’s still well below your intended amount of $600k.

More importantly, what are the liabilities that will be affected should you lose this income?

Dependents? Housing? Other loans?

 

[BBCWatcher]

Sorry but i dont quite understand what has disability income got to do with CI.
Could you explain?

Sure. So-called “Critical Illnesses” are not financially impactful on the income side unless they disrupt your ability to earn an income. There are also many other possible ailments and maladies and conditions that could jeopardize your income from work, partially or fully impacting your ability to work. And the income loss could be for your entire working career.

“CI” insurance doesn’t really cover what I described. If your disability is caused by something that isn’t on the CI list, you’re f**ked. If the disability is medium-term or long-term, you’re f**ked. (CI payouts aren’t nearly big enough to cover that loss.) You’ve lost most or all of your earnings from work, and CI doesn’t pay (or doesn’t pay enough) to cover that loss.

Disability Income Insurance (DII) covers those types of big losses, which can be for an entire working career. If you don’t have DII but have CI, and if you’re reliant on your earning potential, you’re taking a big risk. If you have DII but don’t have CI, you’re not taking much risk at all. DII coverage is much higher priority.

As it happens, AIA is one of the three carriers in Singapore that sells DII. So if you want to hawk AIA’s products, there you go, that’s a good one. Great Eastern and Aviva are the other two. (Aviva has two such products since they also have a MINDEF/SAF Group Disability Income Insurance policy which is slightly different than the general DII products.)

 

[teo.wayne]

Why not GE?

Personal preference.
Dealt with this company before, left with a bad impression.

 

[teo.wayne]

Sure. So-called “Critical Illnesses” are not financially impactful on the income side unless they disrupt your ability to earn an income. There are also many other possible ailments and maladies and conditions that could jeopardize your income from work, partially or fully impacting your ability to work. And the income loss could be for your entire working career.

Disability Income Insurance (DII) covers those types of big losses, which can be for an entire working career. If you don’t have DII but have CI, and if you’re reliant on your earning potential, you’re taking a big risk. If you have DII but don’t have CI, you’re not taking much risk at all. DII coverage is much higher priority.

So your stand would be to cover Disability and not CI or do you think there's a need to cover both? I would think that there's lower probability of getting disabled than getting diagnosed with a CI. I mean I don't exactly know for sure.

 

[mSnooze]

Everyone have different take an opinion on what one should be cover or getting for insurance. For example, one who has witness their relatives suffer from CI/Early CI will tend to be more bias to get coverage for them as well.

There is no one size fits all. You should instead breakdown your rationale for getting wholelife, purpose, your concern; why not term, etc.

 

[BBCWatcher]

So your stand would be to cover Disability and not CI or do you think there's a need to cover both?

I agree with this analysis. Quite simply, you're f**ked really, really hard when you lose all or most of your earning potential in Singapore, particularly early to mid career. It's an absolutely catastrophic event.

 

[maple96]

Insurance companies play with your fear and greed to sell their products. If u cannot manage your fear and greed, u will be donating all your hard earned monies to them.

There are trends in why people buy different insurance products, some are only introduced in the later years cos insurance companies need to be creative to sustain their business.

If u are high income earner, then maybe u fear so buy DII, but then when u are high income earner u would also tend to have alot of savings to self insure.

Luxury vs necessity. Most, even govt for the country's sake, think hospitalisation and long term care (CPF Life, Medishield Life, Eldershield/Careshield) are necessary.

U can afford, buy lor, dun forget u are donating your hard earned monies to them. If nothing happens, money gone, if something happens then u say heng ah! Like I was hospitalised twice due to accident, so I say heng ah, dun lose money still earn with my riders

I have WL CI (the trend more than 20 years ago), heng ah no need use, but will have big lump sum for retirement, earning more than 4% compounded, so just keep lor

I posted above in another thread earlier, below additional points all my own views:

Why buy insurance?

Eg if I get hospitalised for some reasons or kena CI, I dun want my hard earned monies to be wiped out and donated to the doctors. I want insurance to help supplement my savings, not replace it.

If u spend so much of your income on insurance premiums expenses, how much can u save for emergency use? So dun over insure, hoping insurance will replace your lost income or leave u a legacy should something happen but never happen

Focus your time and effort on your increasing your earning power and increasing your savings is more important, then u can self insure. If u cannot even save or dun have enough income, u still want to donate to the insurer?

I buy whole life which covers death, tpd and ci, started with 50k, cos insurance only supplement not replace (that is very expensive). As my income increase, I add on. With whole life, it is a form of savings, not donating the money to the insurer, if nothing happens, I get my money back with interest to enjoy for retirement. With whole life, the sum assured increases over the years, so 50k becomes more than 150k now.

 

[Moneyworkforme]

I based it on 10x of annual salary.
600K is just an idea, covers around 4 years of my income loss. Not alot too?
I mean i really dk.

My opinion, is very hard to say an amount you need to be insured before know what is your need and how many dependants you have. That is alot of Life plan in the market for people with different profile and different budget...

 

[teo.wayne]

Everyone have different take an opinion on what one should be cover or getting for insurance. For example, one who has witness their relatives suffer from CI/Early CI will tend to be more bias to get coverage for them as well.

Finally.
Yes, you got this part right.
My dad was a cancer patient. Saw how his agent got him to buy countless of saving plans but nothing to cover for CI (is it because it's expensive, hence hard to sell so agents don't really bother?). Thank goodness his hospitalisation plan (one thing done right at least) covered $300k of his surgical and medical expenses but I witnessed how that 1-1.5 years of income loss as a result of inactivity has caused him so stress. If he had only gotten a CI plan to pay him a lump sum to cover that income loss for that period, he would have been in a much better position.

I, like most of you, have never quite believed in giving money to insurance companies until this incident. Point is, I don't wish to be caught in a similar situation, I'm comfortable being safe than sorry.