AVIVA My Multipay Critical Illness vs AIA Triple Critical Cover (Critical Illness Coverage)

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

  1. Cover for multiple Early Critical Illness (ECI in short)
  2. Cover 300% of sum assured for critical illnesses
  3. 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

The AVIVA MPCI3 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”).

 

2) 300% of sum assured is paid out for a critical illness claim

The AVIVA MPCI3 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 TCCL only pays 1x of the sum assured even if it is for a critical illness claim.
 

3) Extra 300% coverage for re-diagnosed cancer

The AVIVA MPCI3 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. 

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

The AIA TCCL pays out the sum assured + a $5,000 compassionate benefit.
The AVIVA MPCI3 only pays $5,000 for death.

 

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! 

Do you know that there are 5 commonly diagnosed conditions covered under “special benefits conditions”? 
This is the list

1. Diabetic Complications

2. Angioplasty & Other Invasive Treatment for Coronary Artery

3. Osteoporosis with Fractures

4. Severe Rheumatoid Arthritis

5. Mastectomy

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.

 

Josh Tan

As a dad now, I have a new found perspective on financial matters concerning parents. I share many of the concerns that you have and as I search for answers myself, I'll share them through my articles. Being keen on investing and personal finance matters, I started a journey in the financial planning industry and have been blessed to share what I am passionate about for the last 10 years.