Term Plan with Early + Late Stage CI

[prashn80]

Hi, anyone can kindly recommend a good term plan with early & late CI coverage? I recently came accross ManuCompleteCare from Manulife. Pays out 100% of SA for death, TPD (up to 65), and early+late CI. Pays additional 100% SA for some of the CI and additional 20% SA for special conditions (2 claims max). For male non-smoker age 34 ANB, i was quoted $2691 per year payable up to age 75 for SA of 150K. Any seniors can advice if the premiums r reasonable or recommend any other suitable plans? Thanks.

 

[kebinu]

Do you think paying so much premium for low sum assured is worth it?

Have to check why you need the coverage in the first place.

 

[bigmice]

I suggest talk to difference agency, easy to make clear what the best product for you.
insurance cannot only think about Premium, and better go through the BIPS.

 

[Expert]

I tried to do an excel sheet with the values for my case, Aviva term vs AXA Life Exential Prime. 26yo male, non-smoker. Any advise? Thanks!

Note:
- I did not add in the remaining cash value of the LEP, which estimated at 65 is $20k+.
- The AXA LEP covers basic SA ($50k) after 70yo till 99yo.
- The AXA LEP covers TPD/CI till 70yo.

 

[djchris]

Does the AXA plan include early CI?

 

[MoonHehe]

Does the AXA plan include early CI?

Yup it does.

 

[Expert]

Does the AXA plan include early CI?

Yes, but it is 75k max payout each up, for 2 times different cI

 

[simon_84]

try to look for group term insurance, premiums are cheaper.

 

[FP_IFA]

The comparison below isn't exactly fair to SAF GTL and its riders. The SAF GTL and its riders payout are exclusive of each other whereas AXA Life Exential Prime is not.

 

[djchris]

try to look for group term insurance, premiums are cheaper.

Group term insurance also have their disadvantages. Policy terms are determined by the group and not by the individual. The group can choose to increase the premium or change the claim conditions anytime. That said, group term insurance like SAF group term insurance is quite safe because it's not likely SAF will remove this since I'm sure many regulars are using it. The last time they made a change, was many years ago when the premiums were reduced.

 

[djchris]

I tried to do an excel sheet with the values for my case, Aviva term vs AXA Life Exential Prime. 26yo male, non-smoker. Any advise? Thanks!

Note:
- I did not add in the remaining cash value of the LEP, which estimated at 65 is $20k+.
- The AXA LEP covers basic SA ($50k) after 70yo till 99yo.
- The AXA LEP covers TPD/CI till 70yo.

I would still take SAF term because it means I can then use 2.4k per year to build a proper investment portfolio for the next 15 years. Remember in school, they taught about present and past value of money. Imagine how much opportunities you could have missed in the next 15 years.

Note: I'm not saying that one should take the cheapest term plan because of price. It's an overall assessment of saying I will still commit 3k per year, but 2.4k goes into pure investment and not asking an insurance company to do something the business model is not meant to do.

 

[simon_84]

I would still take SAF term because it means I can then use 2.4k per year to build a proper investment portfolio for the next 15 years. Remember in school, they taught about present and past value of money. Imagine how much opportunities you could have missed in the next 15 years.

time value of money.
given the inflationary environment in sg, is better to spend or invest now than later as your money will lose purchasing power gradually.

with that being said, to invest now when STI is high, you really need to plan your entry price right so that can obtain some level of safety margin when the index falls.

 

[djchris]

time value of money.
given the inflationary environment in sg, is better to spend or invest now than later as your money will lose purchasing power gradually.

with that being said, to invest now when STI is high, you really need to plan your entry price right so that can obtain some level of safety margin when the index falls.

Using the above logic, we have 15 years to wait for STI to fall my friend. I'd prefer to follow Shiny Things' recommended portfolio but invest on a monthly basis. STI will fall sooner or later and I also set aside a portion of cash monthly to build a small warchest to wait for this opportunity.

 

[Expert]

Using the above logic, we have 15 years to wait for STI to fall my friend. I'd prefer to follow Shiny Things' recommended portfolio but invest on a monthly basis. STI will fall sooner or later and I also set aside a portion of cash monthly to build a small warchest to wait for this opportunity.

Okay I'm going to go get the group term insurance liao...

The rest i will save and invest. Any thing i can do with $200 a mth? Lol

 

[djchris]

Sure! Either use OCBC blue chip investment plan to buy stocks every month with $200 (high charges though considering $5 charges for $200 investment) or save for a few months and buy stocks using Standard Chartered Online Trading portal.

But you need to assess your own investment risk profile before investing.

 

[simon_84]

Using the above logic, we have 15 years to wait for STI to fall my friend. I'd prefer to follow Shiny Things' recommended portfolio but invest on a monthly basis. STI will fall sooner or later and I also set aside a portion of cash monthly to build a small warchest to wait for this opportunity.

waiting for STI to fall, well it depends on your patience.
at 2950 plus is also considered a dip in STI, managed to pick up CMT and ST ENG during that period after cny.
it is a personal waiting game, meanwhile if there is any counters at your valuation feel free to enter, cause the pros of investing now is that you get your returns sooner whether via capital gain or dividends.

and reits are mandated by law to distribute 90% of their rental income.
recently average down first reit and suntec.

 

[djchris]

The goal is to put in a fixed amount every month regardless of whether the market rises or falls. I'll keep a separate warchest to buy stocks that I like.