Last updated on May 22nd, 2018 at 12:14 am
AVIVA My Multipay CI Plan III (MPCI3) VS AIA Triple Cover LIFE (TCCL)
In the last year, we have seen close to 10,000 views for this post (thank you)! Both these plans insure for the subject of critical illness comprehensively.
In April 2018, Aviva launched MPCI3 and it allows you to
- Cover for multiple Early Critical Illness (ECI in short)
- Cover 300% of sum assured for critical illnesses
- Relapse cancer
Covering multiple Early Critical Illness (ECI) in my opinion is the most important coverage to you. ECI conditions include early stage cancer and early stage heart diseases. etc. With modern health screening, early onset of cancer conditions for example can be picked up with cancer market test and stools analysis test. Naturally, treatment can take place much earlier.
Pure early critical illness term plans such as AVIVA MyEarly Critical Illness, GE Smart Early Critical Care, Pru Early Stage Crisis Cover, TM EarlyCover, AXA Earlystage criticare allow only 1 claim but do not cost much less.Most prefer multi-cover CI plans once we show them the cost to benefit comparisons.
3 key advantages of MPCI3 over TCCL
1) No waiting period between different early critical illnesses
2) 300% of sum assured is paid out for a critical illness claim
3) Extra 300% coverage for re-diagnosed cancer
What about the premium for MPCI3?
AVIVA still offers MPCI plan (the old version). The MPCI3 covers much more than MPCI and premium is only slightly more expensive by 10% or less. For some age groups, premium difference is only 2-3%.
Premium for MPCI3
- Female non smoker, age30, covering till age75 for sum assured of $100k, premium is $1,485/year
- Male non smoker, age30, covering till age75 for sum assured of $100k, premium is $1,369/year
The one key advantage of AIA TCCL over MPCI3
1) Higher death benefit
AIA offers both Triple Critical Cover Life Plan (TCCL) and Triple Critical Cover Value Plan (TCCV)
but TCCL is likely better!
As shown in the diagram below, TCCL has a surrender value on or after age75. TCCV will expire at age75 with NO value.
Attached below is the premium table 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 TCCV plan (which does not have cash value) is $1,651/y.
You would have saved $612/y choosing TCCV over TCCL.
If you had invested the $612/y surplus, I have calculated that you would have to do your investments at an IRR of 4%p.a. to have $75,000 by age75.
Hence, the TCCL to me is like buying TCCV with an investment with AIA guaranteed at 4%p.a.
That sounds good.
What other coverage does both these plans provide that are important!
1. Diabetic Complications
2. Angioplasty & Other Invasive Treatment for Coronary Artery
3. Osteoporosis with Fractures
4. Severe Rheumatoid Arthritis
Angioplasty is in lay-man terms heart ballooning and I’ve had at least 2 relatives with this condition. Both plans have an addition 20% payout (cap of $25k) for these “special benefits conditions”
If you are looking to plan out your critical illness coverage, do click the icon below to reach us!
The author holds independent views about the merits of the above mentioned plans and is not a direct representative of any of the insurers.