Insurance & Costs of having and raising a child

[NTL]

Can't exactly remember the details, but still know it doesn't cover "as-charged" like ahield plan. Paying lump sum if meet the stated conditions, or hospitalisation on per day basis. Think there is limit to how many days too.

If don't like ILP, and still want cover, think a "good" way is to pay ILP on monthly basis. Then cancel ILP after giving birth if everything is fine. So that will be another $300-$500? Think can right?

[Muck]

Can't exactly remember the details, but still know it doesn't cover "as-charged" like ahield plan. Paying lump sum if meet the stated conditions, or hospitalisation on per day basis. Think there is limit to how many days too.

If don't like ILP, and still want cover, think a "good" way is to pay ILP on monthly basis. Then cancel ILP after giving birth if everything is fine. So that will be another $300-$500? Think can right?

For someone whose approach to insurance is simply "insure only what you can't afford to lose", it's easy for me to answer this. I can afford to lose the menial sums being assured, so why would I want to insure with these pru and axa maternity/new-born plans? Rather I've insured against the things my family can't afford:
- Death;
- TPD;
- CI
- Hospitalisation;
- Disability.

---

Bibi, cityfarmer and godjira are right. Such policies covering suicide do exist. The more pertinent part of my query really is whether anyone knows whether the aviva term covers something beyond the policyholder's control such as pre-meditated murder. It certainly does not qualify as an accident or an illness. Does this mean cannot claim?

I think you should write to aviva to clarify and then print out their reply and attached it together with your policy. Aviva is very strict in adhering to their policy terms.

I am interested to know the answer though I don't have any aviva policy. so if you don't mind, do let me know once you have an answer. Thanks.

Thanks Bibi. I don't have that aviva term policy though was briefly considering till I noticed the clause. Unfortunately I've asked questions thru their website (left email and phone contact) before, asking about car insurance matters, but they were not responsive. Thot I might try my luck asking any buddy here who might own this aviva policy who would know the terms well.

If no one has an answer I may just try writing in again and will share the response if they reply. Just to satisfy curiosity.

Agent and insurance company are very sensitive to these type of clarifications, with obvious reason. I did ask similar question before, agent required black and white before he is willing to answer.

Finally, I've got an answer from Aviva...

"Dear XXXX

Suicide is not covered for first 12 months of inception and reinstatement.  Death due to murder is covered.

This policy covered both death resulting from illness and accident.

All payout is subjected to claims assessment."

 

[CY09]

Hi,

May anyone recommend a good insurance which offers good coverage and is of low-reasonable premiums (not referring to SAF term insurance). I was looking at AXA term protector; for a 150k death coverage and TPD (until 70 and 65 respectively), they quoted me $38 per month. I am 26 on my next birthday.

[NTL]

Hi,

May anyone recommend a good insurance which offers good coverage and is of low-reasonable premiums (not referring to SAF term insurance). I was looking at AXA term protector; for a 150k death coverage and TPD (until 70 and 65 respectively), they quoted me $38 per month. I am 26 on my next birthday.

Try NTUC Income.

[thefarside]

Hi,

May anyone recommend a good insurance which offers good coverage and is of low-reasonable premiums (not referring to SAF term insurance). I was looking at AXA term protector; for a 150k death coverage and TPD (until 70 and 65 respectively), they quoted me $38 per month. I am 26 on my next birthday.

Hi

My family have quite a few term policies - 1 from AXA and 3 from NTUC Income. I find Income's cheapest in terms of dollar coverage.

To lower cost you could consider again the purpose why you want to be insured until 70. Usually mortality premiums skyrocket after 55.

Just to share my experience in insurance planning - I restructured my own policies after my first child was born and "laddered" my policies by taking out a 25-year term of 500k for each kid. There is one 750k policy which was for my wife and parents in case I up lorry before 55.

Also got a disability policy from GE for 5k per month payout valid till 55. Total cost about 3.5k per year, total death & tpd about 1.5 mil (last policy terminates ~ 60 years old), 100k CI rider, and 5k per month vegetable event payout till 55.

All this is in addition to current net worth and mortgage insurance.

[Traumfanger]

Has anyone deal with PruLife Multiplier?

It seems to combine the element of Term insurance + Endowment. To me, it is different from ILP.

Firstly, the term component.. If I get a 300K Coverage for Death/CI/TI/TPD I get 3x of it which is 900K coverage. This is the multiplier effect. And for this policy, I have the option to pay for 10,15 or 25 years. (This is the part which I don't like, because I like to delay payments like these to take advantage of inflation).

Secondly, unlike term insurance, the premium component is locked in. So there will be no increase in premium over the years.

Thirdly, unlike term insurance, the coverage does not stop at 65 but covers life long. However, after 65, TI and TPD ceases to be covered. And at age 65, he may surrender his policy and get a cash payout (endowment element).

Would anyone wanna discuss on this?

I am of the mindset of BTIR, btw. This is a new product mentioned by an Agent, which I find slightly attractive on first glance.
Should more information be required, let me know. I only got the brochure btw. haha

[Bibi]

I dont believe if i purchase 300k coverage i will get 3 x 300l coverage for "free". Everything comes with a price.

It is not true that all term insurance have variable premium depending on age. Some term insurance have fixed premium till it expires.

It is also not true term insurance stop at 65. HSBC offer term till 99 years. Even CI and i think TPD continues till 99. I bought one HSBC term till 75.

[Kelvin]

Has anyone deal with PruLife Multiplier?

It seems to combine the element of Term insurance + Endowment. To me, it is different from ILP.

Firstly, the term component.. If I get a 300K Coverage for Death/CI/TI/TPD I get 3x of it which is 900K coverage. This is the multiplier effect. And for this policy, I have the option to pay for 10,15 or 25 years. (This is the part which I don't like, because I like to delay payments like these to take advantage of inflation).

Secondly, unlike term insurance, the premium component is locked in. So there will be no increase in premium over the years.

Thirdly, unlike term insurance, the coverage does not stop at 65 but covers life long. However, after 65, TI and TPD ceases to be covered. And at age 65, he may surrender his policy and get a cash payout (endowment element).

Would anyone wanna discuss on this?

I am of the mindset of BTIR, btw. This is a new product mentioned by an Agent, which I find slightly attractive on first glance.
Should more information be required, let me know. I only got the brochure btw. haha

Pru is probably one of the last insurers to come up with such a plan.

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[NTL]

Has anyone deal with PruLife Multiplier?

It seems to combine the element of Term insurance + Endowment. To me, it is different from ILP.

Firstly, the term component.. If I get a 300K Coverage for Death/CI/TI/TPD I get 3x of it which is 900K coverage. This is the multiplier effect. And for this policy, I have the option to pay for 10,15 or 25 years. (This is the part which I don't like, because I like to delay payments like these to take advantage of inflation).

Secondly, unlike term insurance, the premium component is locked in. So there will be no increase in premium over the years.

Thirdly, unlike term insurance, the coverage does not stop at 65 but covers life long. However, after 65, TI and TPD ceases to be covered. And at age 65, he may surrender his policy and get a cash payout (endowment element).

Would anyone wanna discuss on this?

I am of the mindset of BTIR, btw. This is a new product mentioned by an Agent, which I find slightly attractive on first glance.
Should more information be required, let me know. I only got the brochure btw. haha

Why introduce it as an Endowment + Term, when it is actually a Whole Life + a built-in decreasing term? As the policy grows in value, the decreasing term value starts to drop, thus providing the additional cover until a certain age.

I had went to Prudential website and take a look at the brochure. The multiplier is only until age 65. 3x is only applicable for those below 30. For CI, the multiplier is 2.5x till age 65 for those below 30. For those above 30, the multiplier is reduced. After 65, there will be no more multiplier.

If I am looking for such kind of plan, I will compare the premium paid for a particular amount of cover, rather than on the multiplier, across the different insurers and find the best value.

And as Kelvin had said, this is not a new kind of plan. I get known to such plan at least 2 years back. Prud is late for the party...

Since you believe in BTIR, then this plan is definitely not for you. The return will not be attractive, and term life will most likely cost less. Try asking for a level term till 65 for $600k, plus a level term till 99 for $300k. See the difference in premiums between getting the Prulife Multiplier ($300k cover) vs the 2 term plans that give essentially the same cover.

[Traumfanger]

Has anyone deal with PruLife Multiplier?

It seems to combine the element of Term insurance + Endowment. To me, it is different from ILP.

Firstly, the term component.. If I get a 300K Coverage for Death/CI/TI/TPD I get 3x of it which is 900K coverage. This is the multiplier effect. And for this policy, I have the option to pay for 10,15 or 25 years. (This is the part which I don't like, because I like to delay payments like these to take advantage of inflation).

Secondly, unlike term insurance, the premium component is locked in. So there will be no increase in premium over the years.

Thirdly, unlike term insurance, the coverage does not stop at 65 but covers life long. However, after 65, TI and TPD ceases to be covered. And at age 65, he may surrender his policy and get a cash payout (endowment element).

Would anyone wanna discuss on this?

I am of the mindset of BTIR, btw. This is a new product mentioned by an Agent, which I find slightly attractive on first glance.
Should more information be required, let me know. I only got the brochure btw. haha

Why introduce it as an Endowment + Term, when it is actually a Whole Life + a built-in decreasing term? As the policy grows in value, the decreasing term value starts to drop, thus providing the additional cover until a certain age.

I had went to Prudential website and take a look at the brochure. The multiplier is only until age 65. 3x is only applicable for those below 30. For CI, the multiplier is 2.5x till age 65 for those below 30. For those above 30, the multiplier is reduced. After 65, there will be no more multiplier.

If I am looking for such kind of plan, I will compare the premium paid for a particular amount of cover, rather than on the multiplier, across the different insurers and find the best value.

And as Kelvin had said, this is not a new kind of plan. I get known to such plan at least 2 years back. Prud is late for the party...

Since you believe in BTIR, then this plan is definitely not for you. The return will not be attractive, and term life will most likely cost less. Try asking for a level term till 65 for $600k, plus a level term till 99 for $300k. See the difference in premiums between getting the Prulife Multiplier ($300k cover) vs the 2 term plans that give essentially the same cover.

I see. Thanks for the advise. May I ask that you explain the decreasing term portion? I don't quite understand it. Thanks

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