China Taiping i-Secure (ii) – A Life Insurance with Multiplier Plan Till 86 years old; Is it worth it?
What is China Taiping’s i-Secure (ii) all about?
i-Secure policy from China Taiping is a participating life insurance policy that provides coverage for Death, Total & Permanent Disability and Terminal Illness. In addition, you can add additional coverage for Critical Illness and/or Early Critical Illness Accelerator, premium waiver and spouse rider.
What is something special about China Taiping’s i-Secure (ii) policy?
We have heard about whole life insurance policies with multiplier that provides us with additional coverage when we are working and have high financial commitment. Most of these policies provides 2X to up to 5X multiplier till Age 65 or 70. This is the first policy I have heard of at this moment, that multiples the coverage till 86 years old. That’s probably the whole of life for most of us. This is one of the many highlights of China Taiping’s i-Secure policy.
What Is A Multiplier, and Why Is It Important For Us?
In the past, traditional whole life policies are straightforward. You decide on the sum assured and this will increase with bonus pay-out year on year. Which means, it is escalating, and the benefit value will increase over time (refer to diagram 1 below).
However, while doing financial planning, what we realised is that our economic net worth is usually the highest when we are working. At the same time, it is also during this time where we have the highest expenses, be it getting a house, children’s education, or even saving for our retirement. As such, there is a need for higher coverage during this period when their financial commitment is high such that our income/savings will not be compromised in the event of a major illness.
That’s when insurance companies started adding in multiplying coverage to their whole life policies in the recent years. Instead of escalating coverage, the basic sum assured is multiplied during the time when we are still working and needed a higher coverage. This is usually at retirement age of 65, 70 or 75. After that specified age, the coverage will revert back to the basic sum assured plus bonuses (like our traditional whole life policies).
So Why Cover Till 86 Now?
China Taiping came up with a whole life multiplier plan, i-Secure (ii) that covers up to 4 times the basic sum assured and we can now choose to have this additional coverage till 71 or 86 years old
Insurance policies are constantly evolving according to the current needs of individuals. While the majority still prefers to have high cover for a shorter term for lower premiums, there is also a new trend in higher number of individuals who feel that the possibility of being critically ill is higher when they get older, and they may not be able to cater extra retirement funds to take care of the increasing medical needs.
With this new feature, it gives us an option to use the policy as a reserve fund when we retire, for major illnesses or as a legacy for our children when we are no longer around.
i-Secure (ii) Covers A Whopping 161 Covered Conditions
This plan provides one of the most comprehensive cover in the market out there.
Another Unique Feature of i-Secure (ii) – Spouse Rider
Premium waiver or payer benefit rider may be familiar to most of you. It provides coverage for the person paying the policy, or we call the Proposer, in the event they are terminally ill, suffers total permanent disablement, or death. Future premiums will then we waived but the policy will continue as though premiums have been received year on year.
While the premium waiver or payer benefit rider has features that are very useful, there are circumstances where premiums are paid from a joint fund with the spouse. Should either one suffers from any of the 3 circumstance, the family finance will be greatly affected and may pose a concern paying the premium. For China Taiping, i-Secure (ii), there is an option to add on a Spouse Rider to cover this gap.
Who could China Taiping i-Secure (ii) be for?
- Those looking for short premium term – This policy allows for a minimum of 5 years premium term. Suitable for those who are looking to spread the premium of a high coverage over a short period of time.
- Those who are looking for a wide range of critical illness coverage
- Those who are interested in having a higher coverage till 86 years old
- Leaving a legacy to the next-of-kin
- Possible to get this for children to cover them for illnesses and lock in their lower premium now
All of us have different needs and there are many types and variations of policies that cover critical illnesses, total permanent disablement and death. It is important to share your concerns to make sure the plan is suitable to you. If you have any questions, you can write to us or use the chat feature on the website for a quick chat.
Disclaimer: Information written is to my best knowledge as per the date posted and has no legal rights. It represents my personal opinion, which may be different from yours, and that’s totally cool. It is important to read the policy contract and documents for the full terms and conditions. This post does not constitute a recommendation. Please seek professional advice before committing to a plan as it is a long term commitment.