TM Multicare plan (TMMC) vs AVIVA My Multipay Critical Illness (MPCI)

 

In Jan2018, Tokio Marine launched its own version of multipay critical illness plan. Coverage with such a plan is the most comprehensive way to insure if you are looking for protection that ranges from early illnesses to cancer relapse claims. The TM Multipay critical illness plan (TMMC) has eerie similarities to the Aviva My Multipay Critical Illness (MPCI) plan and this post is to highlight the key improvements in terms of coverage that it can offer to you.

 

Why buy multipay critical illness plans in the first place?

Serious illnesses can strike when least expected, even in the most health-conscious and fittest of individuals. Cancer and kidney failure statistics are looking bad and these conditions are typical critical illness conditions covered with such a plan. According to this Straits Times article, 36 people are told that they have cancer each day in Singapore. Stage 3B breast cancer patients face a 70 per cent to 90 per cent recurrence within 10 years, while 80 per cent of colorectal cancer patients are subsequently diagnosed with liver cancer. In addition, Singapore has the fourth highest incidence of kidney failure in the world. Every day in Singapore, 4.7 new kidney patients are diagnosed, which means over 1,700 cases of kidney failure a year.

All this means that surviving past CI and having more than one CI is very real which means that a traditional CI coverage may NOT be sufficient.

 

Quick comparisons between the TMMC and MPCI

I did a few comparisons in premium and realised that the TMMC is about 15-20% more expensive for the same term and coverage amount. Will explain the differences in coverage (below) for you to determine if it is a suitable plan.

In terms of planning, the TMMC only offers term till age 70,75,85 unlike the MPCI which can be till any age. The TMMC is a standalone critical illness coverage at the moment and cannot be purchased as a rider unlike the MPCI just in case you want to plan for death and TPD coverage.

 

Three reasons why TMMC covers more!

  1. TMMC has NO waiting period between early stage claims (circled in red)

What is waiting period? It is the time between the first and second diagnosis.

If you are diagnosed with early cancer and have heart related illness concurrently, the TMMC will have to pay both groups of claims (i.e. 200% sum assured). However, the MPCI will only pay from either pot 1 or 2 (i.e 100% sum assured) as the 30day waiting period between claims was not fulfilled. This could mean a 100% more in claimable amount.

 

2. TMMC pays up to 2x of Advanced Stage CI (circled in yellow)

TMMC can pay for claims between 2 advanced stage CI from different groups (subjected to the 1year waiting period). MPCI on the other hand only pays once.

This could mean that the TMMC pays a potential 300% more in claimable sum assured amount.

 

Image source. Describing breast cancer.

3. TMMC has a broader carcinoma in situ definition

TMMC pays for carcinoma in situ for any organ.

On the other hand, MPCI only pays for following organs: breast, uterus, ovary, fallopian tube, vulva, vagina, cervix uteri, colon, rectum, penis, testis, lung, liver, stomach, nasopharynx or bladder.

I’ve a friend’s dad who died from carcinoma in situ of the tongue. For this instance, the broader definition of TMMC would have provided for a claim unlike the MPCI.

 

 

Make your critical illness planning come true

Cancer is the largest cause for a claim of critical illness and is increasingly diagnosed at an earlier age. With adequate insurance coverage, you can safeguard your family from financial distress if such a situation arises.

Insurance premium is cheaper when you purchase at a younger age. Talk to us today.

 

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The author holds independent views about the merits of the above mentioned plans and is not a direct representative of any of the insurers.

The author is not covered by any of the above mentioned plans.

 

 

 

 

 

Josh Tan

I graduated with an Accountancy degree in from Nanyang Technological University but did not join an audit firm. 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. Currently, I practice in Promiseland Independent Pte Ltd, one of the reputable independent financial advisory firms in Singapore 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.

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