The AIA Power Critical Cover offers you possibly the highest number of conditions right now with 175 conditions.
**Right now till 15Dec2019, you get a 30% off first year premiums!**
4/5 experience a lifetime of chronic health condition even after a CI recovery.
You get coverage for 150 multi-stage CI conditions (42 early CI + 35 Intermediate CI + 73 major CI), 10 conditions under the Pre-Early Benefit and 15 special conditions.
AIA Power Critical Cover Value Plan (till age75) vs Life Plan (till age100)
There are 2 designs of the plan.
First is the Power Critical Cover Value plan which is a term plan till age75. No cash value.
On the other hand, Life plan is a coverage till age 100 and has a surrender value of 75% of sum assured and more from age75 onwards. Plan matures at age 100 where you get 100% of your sum assured in one lump sum (after deducting any amount paid under Critical Illness Benefit).
Note: maturity of 100% is on sum assured and not on premium made.
Based on AIA's previous "Triple Critical Cover", majority of customers preferred the Life plan.
Hence, more discussion will be made in this post regarding this plan structure.
Possibility to claim up to 5 early CI conditions with Power Reset Benefit
The AIA Power Critical Cover (PWCC) plan has a "Power Reset Benefit" which fully restores your coverage amount for a different condition, once 12 months have passed from the last claim.
The power reset benefit is triggered with claim for any early, intermediate or major CI condition.
If you are looking to cover for early CI mainly, this plan is highly effective.
For example, an example would be early stage Kidney failure which is "Surgical Removal of One Kidney" and early stage cancer. They are both in the same group/pot under AVIVA My Multipay and TM Multicare CI which means claim once only.
AIA PWCC allows you to claim for both the conditions instead. (subjected to 12 months power reset).
You may claim for a total of 5 different early CI conditions if that is your concern.
#Note: Claim cap of $250,000 per early CI claim.
How does the "Power relapse" benefit work?
AIA Power Critical Cover offers you claims for a relapse condition with a 2year waiting period. With 5 conditions covered, this is the highest in market now.
An example will be major cancer. If you can still claim again for the same cancer condition after the 2year waiting period.
According to AIA's study, many cancer patients feel the need to get insured again after being diagnosed. And there is always risk of relapse. Hence, this "power relapse" is important.
Unique coverage for these conditions under "Pre-early Benefit"
This is a market first with 10 conditions under the Pre-Early Benefit.
Two chronic disease conditions whose benefits are 10% of sum assured or capped at $10,000.
Firstly, type 2 diabetes mellitus.
The Diagnosis must be supported by all of following criteria:
1) Plasma glucose (two hours after a 75 g Oral Glucose Tolerance Test) is at least 200 mg/dL. (11.1 mmol per L)
2) Glycated hemoglobin (HbA1C) is more than 6.5%.
3) The Insured must have documented proof or record from a Physician to evidence medicine treatment at least for six (6) months due to Diabetes Mellitus.
The following are excluded:
A) Diabetes due to pregnancy, alcohol and drug abuse is excluded
B) Type 1 Diabetes Mellitus
FUN FACT: According to the AIA Power Critical Cover 2019 study, the cost of living with diabetes will increase to at least S$6,000 in additional expenses per person this year. Hence, having a payout here is useful.
Secondly, Thyroid dysfunction which is fairly common.
The Diagnosis must be confirmed by Physician with thyroid function test and medical or surgical treatment is required to prevent complications.
Thyroid dysfunction due to pregnancy, alcohol and drug abuse is excluded.
The cardiovascular disease conditions, benign and borderline malignant tumour conditions are 10% of sum assured or capped at $25,000.
If you look at the list above, what about benign and borderline malignant tumour in the BRAIN?
It is already a major CI condition.
Premiums for age 35 male (non-smoker) for Power Critical Cover "Life" plan
This sharing to give an overview of premiums and understanding benefits.
The first year premium has AIA vitality discounts (without factoring launch discount) and premium for the AIA Power Critical Cover Life Plan is $2,727.90/y. Do note that PWCC Life plan is a unique CI standalone plan that has surrender value.
NOTE: Any claims paid under Critical Illness Benefit will reduce the amount of surrender benefit/maturity benefit.
On the other hand, the PWCC value plan (till age75), premium is $1,985.40/y.
If no vitality discounts are factored in, premiums will be $3,031 and $2,206 respectively.
Now as mentioned, there is a surrender value.
If for example you wish to surrender at age75, there will be a $75,000 fully guaranteed.
Total premiums made is $124,271 and after receiving the guaranteed surrender benefit of $75,000, your net outlay is only $49,271!
With Vitality discounts and first year discounts, the total premium may be lower than that.
Why I believe you benefit from taking the Life plan over the Value plan?
By choosing Life plan over value plan, you pay an extra $825/y. However, the Life plan gives a guaranteed surrender value for $75,000 which the Value plan doesn't.
Hence, if you do an IRR computation, the $825/y extra grows at 3.61%p.a (guaranteed) to become $75,000 in 41years. This is a decent return.
If there is a claim, claims paid will reduce the surrender value. However, that also means you really should consider the option of keeping the policy and remaining insured past age75.
Computation below though rather tiny as it's for explanation.
NOTE: Computation is for Age next birthday 35. Please refer to a qualified financial planner and do a needs assessment.
Qualifiable ages start from 2weeks (infant) till age of 65.
If you would like to find out more, email to Josh.email@example.com or WhatsApp below.
Last updated on November 28th, 2019 at 07:45 am