Critical illness plans help you cope with recovery and expenses when you are out of a job in the event of a critical illness. Initially, there was only regular critical illness plans that give a payout after late stage disease diagnosis. After that, came early critical illness plans that pay out after early to intermediate stage diagnoses. While useful, this is a separate plan that you had to get. Multi-pay plans emerged in recent years, and is innovative for providing multiple payouts without immediate policy termination, unlike the early and normal critical illness plans. This implies that there is a difference between the three types of critical illness plan premiums.
We here at fundMyLife are understanding, and we understand that a lot of people have one thing in their minds – money. More specifically, the cost of their insurance plans. That also explains why comparison sites are so popular. In this article, we compare the early and multi-pay critical illness plan premiums from various insurance companies. Disclaimer: take this article as a rough guide of the difference between plans from the insurance companies. As such, you should always confirm with a qualified financial adviser.
We compare seven early and multi-pay critical illness plan premiums. However, we’re afraid we do not have data on some critical illness products, such as Great Eastern Critical Care Advantage (review) and Prudential Crisis Cover (review). For those, you’d have to find a qualified professional to advise you. As for the products that we are covering, we have even written product reviews on several of them! These are:
- Tokio Marine Early Cover
- Aviva My Early Critical Illness Plan
- Manulife ReadyCompleteCare [Review]
- Aviva My MultiPay Critical Illness Plan III [Review]
- Tokio Marine Multicare [Review]
- AIA Triple Critical Cover [Review]
- AXA Early Stage CritiCare [Review]
Here, we used a combination of profiles of a typical consumer:
- Sex: male/female
- Sum assured: $50,000/$100,000
- Until age 75
Assume that smokers have to pay way more than what you see in the following graphs. In addition, we used age 75 because some plans are until the age of 75 and no longer, such as AXA Early Stage CritiCare. 75 is also a good age, statistically speaking. After a certain age you’d want to focus your resources on health insurance anyways.
Unsurprisingly, men pay more premiums compared to women. This is because men are at higher risk of contracting critical illnesses, such as coronary heart problems. Men also live shorter than women. Also unsurprisingly, is that both men and women pay more in their premiums when their sum assured is $100,000 compared to $50,000.
Here’s where it gets interesting. In general, The annual critical illness plan premiums plateau at first, but increases exponentially after ages 35-40 and beyond for all of the plans. Based on the graphs, it’s a good idea to start considering critical illness plans before you reach 40 years old. This is because the annual premiums are still manageable before 40, and then they become too expensive as the premiums scale exponentially after.
For early critical illness plans, Tokio Marine Early Cover and Aviva My Early Critical Illness are competitive with each other. This is true for both males and females, and across both sum assured.
For men, under multi-pay critical illness plans, Aviva MyMultiPay Plan III is the cheapest in terms of premiums. It remains relatively low over time. AIA Triple Critical Cover comes second. For women, AIA Triple Critical Cover is the cheapest in terms of premiums for a multi-pay plan. This is followed by Manulife ReadyCompleteCare.
AXA Early Stage CritiCare is the most expensive critical illness plan among all the other plans. The premiums shoots right up after 50 years old and becomes way more expensive after that so if you’re considering this plan, best do it early.
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We hope that this comparison of early and multi-pay critical illness plan premiums are useful as an overview on what to expect. Once again, we must emphasize that early critical illness plans and multi-pay plans are different altogether, so we do recognize that this is somewhat an apple and orange comparison to a certain extent. Again, remember, cheapest may not be the most suitable. Only a qualified financial adviser can advise properly.
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