Last updated on January 17th, 2019 at 09:50 am
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.
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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.
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
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- 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.