Insurance plan

Singapore Whole Life Plan Guide for 360 Coverage



This article was written in collaboration with China Taiping Insurance (Singapore) Pte. (“China Taiping SG”). All opinions expressed in this article are the independent opinion of DollarsAndSense.sg based on our research. DollarsAndSense.sg is not responsible for any financial loss that may arise from any transaction and readers are encouraged to do their own due diligence. You can view our full editorial policy here.

When it comes to planning our future, it’s important to think about both our pros and cons. By investing, we make our money work for us and potentially increase our wealth over time. Yet this only increases our advantage. At the same time, we also need to protect ourselves and our families against downside risks.

While investing aims to increase our returns for the future, insurance is at the other end of the spectrum – to protect us financially against adverse and unforeseen circumstances. For example, an accident or serious illness can limit our ability to work and support ourselves and those close to us.

What does it mean to be well covered?

While probably no one will dispute the importance of insurance, a common question would be: what does it mean for a person to be well covered?

One way to think about insurance planning is to draw parallels with preparing for an exam. During an exam, we can get a rough idea of ​​the topics that will be tested, but we won’t know exactly what the questions will be until the exam. As such, we prepare by covering as many topics as possible.

Similarly, when it comes to insurance planning, we won’t know exactly what curve balls life would throw at us. However, we can get an idea of ​​what these curve balls will look like and prepare for it. These would include accidental deaths and serious illnesses.

The death benefit financially protects our family against death

The death benefit is the amount that is paid to relatives when the death of the insured occurs. It can be an unfortunate accident or a serious illness during youth or old age. The death benefit is important because it provides our loved ones with a payment that can help them financially in times of need.

Critical illness cover

Serious illnesses such as cancer, stroke and heart disease are illnesses that can affect anyone, even young and healthy people. Although these are serious illnesses, they can be treated and some people recover, especially if the illnesses are caught early.

With critical illness coverage, we can receive a lump sum payment that can help us and our family through this difficult time. The payment can finance the cost of treatments that are not covered by our hospitalization plans. Funds can also be used to support ourselves and our families during the recovery period when we may not be able to work.

Since death benefits and critical illness coverage are essential, life insurance plans such as i-Secure Legacy, a whole life protection plan offered by China Taiping SG, allow policyholders to add lifetime critical illness riders (eg, AdvancedCare Rider and EarlyCare Rider) to their whole life insurance plan. In particular, the EarlyCare Rider option can cover up to 161 medical conditions – in the event that you are diagnosed with any of these conditions, the policy will pay a lump sum which you can use for your best treatment without worrying about your finance.

In addition to critical illnesses, the EarlyCare rider also provides coverage for 12 juvenile conditions such as Kawasaki disease and 12 special conditions such as diabetic complications.

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You can find more details about China Taiping SG’s i-Secure legacy here.

Having the right amount of coverage when we need it most

When preparing for an exam, knowing what topics to cover is only one aspect of preparation. It is also important to know when we should start preparing for our exam. If we start our review too late, we can still end up with poor performance, even though we know why we should study.

Likewise, when it comes to insurance, it is not enough to know what is the right protection coverage that we need. We also need to make sure we have the appropriate amount of coverage we need through the different stages of our lives.

For example, a 40-year-old father with three children and elderly dependent parents will likely need more insurance coverage than his future 80-year-old self when his children grow up and his parents die.

During our youth, we may need higher coverage, especially if we have young children and elderly parents who depend on our income. So, we might want a higher death benefit and critical illness coverage amount. When we are older, our children have started working and our parents are no longer around, the amount of cover we need will naturally decrease.

A life insurance plan like i-Secure Legacy offers policyholders a guaranteed benefit of 2, 3 or 4 times the basic insured amount until age 76 (or 86). The idea is that, during our youth, we would want higher coverage compared to our later, older years.

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Note that at age 76 (or 86), the guaranteed benefit will be reduced by 10% each insurance year for five years and will remain at 50% for life.

In the unfortunate event of death, the death benefit payment will be either 1) Guaranteed benefit or 2) Basic sum insured + non-guaranteed bonus, whichever is greater. For example, an insured with a sum insured of S$75,000 can choose a multiplier of 4 times and will receive a guaranteed benefit of S$300,000 until age 76 (or 86). From age 76, the guaranteed benefit will be reduced by 10% each year, until it reaches S$150,000 at age 80 (or 90).

i-Secure Legacy can be invaluable for children

A common misconception with whole life protection plans such as i-Secure Legacy is that it is only suitable for working adults. It’s not true. While adults and their families will certainly benefit from the coverage offered by the policy, i-Secure Legacy can also be useful for children.

For example, parents who purchase the i-Secure Legacy can ensure their child is protected against common critical illnesses today and in the future by adding the EarlyCare rider which also covers childhood conditions such as Kawasaki disease and diseases of the hands, food and mouth with serious illnesses. Complications.

And since coverage is for life, whole life protection plans can serve as the first layer of protection for our children as they grow up and have families of their own, providing them and their families with coverage in the event of death and lifelong serious illness.

Limited pay period

Whether we buy i-Secure Legacy for ourselves, our spouse or our children, the idea here is that we want to enjoy lifetime protection throughout our lives. However, this does not necessarily mean that we want to pay policy premiums for the rest of our lives.

Most whole life protection plans offer a limited pay period. Once premiums have been paid within the limited payment period, coverage will continue for life unless the policy is claimed, terminated or surrendered by the policyholder. For i-Secure Legacy, we can choose premium payment terms of 5, 10, 15, 20 or 25 years.

China Taiping SG is currently running a promotion for i-Secure Legacy with 20% cash rewards on your first annual bonus for a limited period only!

i-Secure Legacy is a cash value policy

Finally, while the main purpose of i-Secure Legacy is to provide us with lifetime protection coverage. It should be noted that this is also a cash value policy. This means that the policy will increase its cash value over time through non-guaranteed premiums, as it is a participating policy that shares the profits of the company’s participating fund. If you choose to surrender the policy, you will receive the cash surrender value. However, the cash surrender value will likely be less than the death benefit payout.

Learn more about i-Secure Legacy on China Taiping SG website and download the product brochure here.

Read also : Understanding CareShield Life: how it covers Singaporeans for severe disability and who is covered