The AIA Power Critical Cover offers you possibly the highest number of conditions right now with 175 conditions.
**Right now till 15Dec2019, you get a 30% off first year premiums!**
AIA and Prudential offer the highest coverage. The differences between the coverage of AIA and Prudential are: Prudential offers a longer Pre and Post-hospitalisation benefits; There is a limit to how much Prudential can cover for Major Organ Transplants but not for AIA. AIA provides additional coverage for Critical Illnesses; Prudential doesn’t. Co-pay, also known as co-payment, is an arrangement where 90% of the total covered hospital bill will be shouldered by AIA Philam Life and the remaining 10% will be paid for by you. For example, if your total hospital bill is P15,000, AIA Philam Life will shoulder 90% of it, which means all you have to spend is P1,500 or the remaining 10%.
4/5 experience a lifetime of chronic health condition even after a CI recovery.
You get coverage for 150 multi-stage CI conditions (42 early CI + 35 Intermediate CI + 73 major CI), 10 conditions under the Pre-Early Benefit and 15 special conditions.
There are 2 designs of the plan.
First is the Power Critical Cover Value plan which is a term plan till age75. No cash value.
On the other hand, Life plan is a coverage till age 100 and has a surrender value of 75% of sum assured and more from age75 onwards. Plan matures at age 100 where you get 100% of your sum assured in one lump sum (after deducting any amount paid under Critical Illness Benefit).
Note: maturity of 100% is on sum assured and not on premium made.
Based on AIA's previous 'Triple Critical Cover', majority of customers preferred the Life plan.
Hence, more discussion will be made in this post regarding this plan structure.
The AIA Power Critical Cover (PWCC) plan has a 'Power Reset Benefit' which fully restores your coverage amount for a different condition, once 12 months have passed from the last claim.
The power reset benefit is triggered with claim for any early, intermediate or major CI condition.
If you are looking to cover for early CI mainly, this plan is highly effective.
For example, an example would be early stage Kidney failure which is 'Surgical Removal of One Kidney' and early stage cancer. They are both in the same group/pot under AVIVA My Multipay and TM Multicare CI which means claim once only.
AIA PWCC allows you to claim for both the conditions instead. (subjected to 12 months power reset).
You may claim for a total of 5 different early CI conditions if that is your concern.
#Note: Claim cap of $250,000 per early CI claim.
AIA Power Critical Cover offers you claims for a relapse condition with a 2year waiting period. With 5 conditions covered, this is the highest in market now.
An example will be major cancer. If you can still claim again for the same cancer condition after the 2year waiting period.
According to AIA's study, many cancer patients feel the need to get insured again after being diagnosed. And there is always risk of relapse. Hence, this 'power relapse' is important.
This is a market first with 10 conditions under the Pre-Early Benefit.
Two chronic disease conditions whose benefits are 10% of sum assured or capped at $10,000.
Firstly, type 2 diabetes mellitus.
The Diagnosis must be supported by all of following criteria:
1) Plasma glucose (two hours after a 75 g Oral Glucose Tolerance Test) is at least 200 mg/dL. (11.1 mmol per L)
2) Glycated hemoglobin (HbA1C) is more than 6.5%.
3) The Insured must have documented proof or record from a Physician to evidence medicine treatment at least for six (6) months due to Diabetes Mellitus.
The following are excluded:
A) Diabetes due to pregnancy, alcohol and drug abuse is excluded
B) Type 1 Diabetes Mellitus
FUN FACT: According to the AIA Power Critical Cover 2019 study, the cost of living with diabetes will increase to at least S$6,000 in additional expenses per person this year. Hence, having a payout here is useful.
Secondly, Thyroid dysfunction which is fairly common.
The Diagnosis must be confirmed by Physician with thyroid function test and medical or surgical treatment is required to prevent complications.
Thyroid dysfunction due to pregnancy, alcohol and drug abuse is excluded. 3gp movies telugu 2017.
The cardiovascular disease conditions, benign and borderline malignant tumour conditions are 10% of sum assured or capped at $25,000.
If you look at the list above, what about benign and borderline malignant tumour in the BRAIN?
It is already a major CI condition.
This sharing to give an overview of premiums and understanding benefits.
The first year premium has AIA vitality discounts (without factoring launch discount) and premium for the AIA Power Critical Cover Life Plan is $2,727.90/y. Do note that PWCC Life plan is a unique CI standalone plan that has surrender value.
NOTE: Any claims paid under Critical Illness Benefit will reduce the amount of surrender benefit/maturity benefit.
On the other hand, the PWCC value plan (till age75), premium is $1,985.40/y.
If no vitality discounts are factored in, premiums will be $3,031 and $2,206 respectively.
Now as mentioned, there is a surrender value.
If for example you wish to surrender at age75, there will be a $75,000 fully guaranteed.
Total premiums made is $124,271 and after receiving the guaranteed surrender benefit of $75,000, your net outlay is only $49,271!
With Vitality discounts and first year discounts, the total premium may be lower than that.
Why I believe you benefit from taking the Life plan over the Value plan?
By choosing Life plan over value plan, you pay an extra $825/y. However, the Life plan gives a guaranteed surrender value for $75,000 which the Value plan doesn't.
Hence, if you do an IRR computation, the $825/y extra grows at 3.61%p.a (guaranteed) to become $75,000 in 41years. This is a decent return.
Filmora video editor registration code. If there is a claim, claims paid will reduce the surrender value. However, that also means you really should consider the option of keeping the policy and remaining insured past age75.
Computation below though rather tiny as it's for explanation.
NOTE: Computation is for Age next birthday 35. Please refer to a qualified financial planner and do a needs assessment.
Qualifiable ages start from 2weeks (infant) till age of 65.
To download the product summary, click here.
If you would like to find out more, email to Josh.tan@promiseland.com.sg or WhatsApp below.
Last updated on November 28th, 2019 at 07:45 am
Last updated on August 31st, 2019 at 10:03 pm
Both the AVIVA Multipay CI (MPCI III) plan and AIA Triple Critical Cover Life (TCCL) are highly popular to meet insurance needs.
THREE key advantages of AVIVA Multipay CI III over AIA Triple Critical Cover Life
Advantage 1: No waiting period between different early critical illnesses for AVIVA MPCI III but 1 year “reset button” for AIA TCCL
The AVIVA MPCI III classifies illnesses into 3 “pots”. As long as condition is from a different pot, there will not be a waiting period.
What this means is that if you are concurrently diagnosed with carcinoma in-situ (pot1) and require cardiac pacemaker insertion (pot2), you will claim for both.
While the AIA TCCL is more liberal in allowing claims for ALL other early critical condition, the waiting period is 1 year between claims (which is also known as the “reset button”).
Advantage 2: AVIVA MyMultipay CI III pays 300% of sum assured. Useful if you are underinsured for critical illnesses.
The AVIVA MPCI III will pay 300% of sum assured if claims is for a critical illness.
Plan remain in-force and becomes free of charge as premiums are waived. AIA TCC Life only pays 1x of the sum assured even if it is for a critical illness claim.
Advantage 3: AVIVA MyMultipay CI III pays for re-diagnosed cancer (up to an extra 300%)
The AVIVA MPCI III provides you with a further 2x 150% sum assured for re-diagnosis cancer.
If you claim for cancer, then relapse after more than 2years, then relapse again after more than 2 more years, the total payable amount for cancer claims will be up to 300%+150%+150%= 600% of the sum assured value.
While the chances are extreme, this relapse coverage is a useful benefit.
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Other extra benefits of AVIVA MPCI3 not mentioned: Relapse cancer coverage
TWO key advantages of AIA Triple Critical Cover Life plan over AVIVA Multipay CI III plan
Firstly, AIA TCC Life plan has Higher death benefit
The AIA TCCL pays out the sum assured + a $5,000 compassionate benefit. The AVIVA MPCI III only pays $5,000 for death.
Secondly, AIA TCC Life plan has Surrender value
The AIA TCCL pays out surrender value of 75% of sum assured at age75. Guaranteed! Possible for retirement use!
QUESTION: Why did you compare with the AIA Triple Critical Cover Life (TCC Life) and not Value Plan?
As shown in the diagram below, AIA TCC Life has a surrender value on or after age75. 75% of sum assured.
The Value Plan will expire at age75 with NO value as a normal term plan.
Image below is the actual Benefit Illustration for a male (non-smoker) of age 30 and covering for $100k sum assured.
Premiums are $2,263/year.
By age75, total premiums paid will be $104,000 and plan comes with a guaranteed surrender value of $75,000 at age75 and after.
Comparatively, the premium for Value plan (which does not have cash value) is $1,651/y.
Yes, you would have saved $612/y choosing Value plan instead of the Life Plan.
But I have calculated that to get $75,000 by age75, you would have to invest that $612/y at a 4% return p.a.
Buying the AIA Triple Critical Cover Life to me is like buying the VALUE plan with around a 4%p.a return with AIA.
Hence, between the 2 AIA plans, AIA TCC Life is possibly better and most AIA advisers do present that from my understanding.
The views and opinions expressed in this article are those of the author and do not represent the views of any other organisation.
Image credits: Plan brochure from AIA and Aviva Life
You’ve seen the analysis. For a private discussion, email josh.tan@promiseland.com.sg or
Click to WhatsApp Josh Tan @ 9006 0446
Also check TM MultiCare CI plan here in this post…
Summary
- Aviva MyMultipay CI III has no waiting period between early CI claims
- AVIVA MyMultipay CI III pays 300% of sum assured. Especially useful if you are underinsured for critical illnesses.
- AVIVA MyMultipay CI III pays for re-diagnosed cancer (up to an extra 300%)
- AIA TCC Life has a death benefit and guaranteed surrender value. Especially useful if you want to plan for retirement.
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