China Taiping i-Care

China Taiping i-Care has the wholesome term coverage insuring against pre-mature death, terminal illness as well as critical illnesses from early to advanced stages. An important feature for term life insurance plans is the convertibility to whole life permanent plans without the need for evidence of insurability, this plan has it too.

Early critical illness coverage inbuilt into the term life insurance product is not oft seen. Usually it appears as a rider which one has to add to the basic term life plan. This presents an opportunity for those starting out on insuring themselves to lock in their insurability when they are in the pink of health.

As term plans are generally cheaper than permanent whole life policies for the same sum assured, China Taiping i-Care offers new entrants to the workforce, a value for money comprehensive coverage start point. I repeat an earlier mentioned feature, they can convert the policy into a permanent one when affordability and circumstances permit.

Alternatively, for those who strongly set their minds to buy term invest the difference, this plan offers term to age 99 too. Statistically, covering to age 99 is whole life coverage already. Else, policy terms can be to age 75 or 85 at policy inception. The choice is yours.

Based on brochure scenario example 1, Tania, age 30 for policy term to age 99 with sum assured SGD300k, annual premium is SGD2,686.

Based on another scenario example 2, Johnson aged 30 buys to insure his son Tommy aged 2 for policy term to age 85 with sum assured SGD300k, the annual premium is SGD754 and SGD149 for an Early Payer Rider. Tommy may convert his policy when he starts working, but Johnson has had the foresight to lock in Tommy’s insurability at a young age.

Some things to note. This review post will get dated. And the product might not be available for new subscriptions at some point. Hopefully this serves as reference for future policyholders who have forgotten what they have taken up.

There can be shifts in planning narratives over time. For example, limited premium tenures gain popularity over the years because people are less confident of their future earning capacity or sustainability of income levels. Regular payout features gained popularity when more and more people are in tune with the FIRE (Financial independence retire early) movement. An extended period of low interest rates brought down insurance products’ returns yield for policy holders, but now in a rising interest rates environment, things are set to change.

China Taiping i-Care may or may not fit into your financial plans. Understand that there is no best plan for all time, but there is a method to objectively facilitate your decisions. Read more about it here.

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