fML Reviews: Aviva MultiPay Plan III

Aviva MultiPay Plan III review

Critical illness plan is a form of insurance that provides a lump sum payout whenever you’re diagnosed with one of the 37 critical illnesses, defined by the Life Insurance Association of Singapore. The lump sum is to help the person during the recovery period, when he/she cannot work. In our previous article, we discussed the differences between single-pay and multi-pay critical illness plans. One plan that we mentioned in the article was the Aviva MultiPay Plan III. Where is Aviva MultiPay Plan I and II? That’s a question that we’re unable to answer. However, we can answer something else instead. In this article, fundMyLife reviews the Aviva MultiPay Plan III and explores their features. Note: this information is accurate as of September 2018.

What is it?

Aviva MultiPay Plan III, as its name suggests, is a critical illness plan that provides multiple payouts. More specifically, it provides up to five payouts across early, intermediate, and severe stage critical illnesses. This also includes payouts if/when your cancer reoccurs. It is available as both a standalone plan or a rider to your existing policies.

Notable features

No waiting period between illnesses of different groups

While multi-pay critical illness plans from other companies have a waiting period, the Aviva MultiPay Plan III is notable because it has no waiting periods between Layer 1 disease groups. Early and intermediate critical illnesses form the first layer. Bear in mind, it’s a maximum of two claims in the first layer.

Aviva MultiPay Plan III Payout structure
Aviva MultiPay Plan III payout structure. Source: Aviva.

For example, if the doctor diagnoses you with Stage I breast cancer and you had a heart attack, you would obtain payout for both conditions. Statistically, it is not likely to happen, i.e. getting multiple critical illnesses from different baskets at the same time, but it’s a good thing to have.

If you take a closer look at the brochure, it says that Aviva will pay 300% of the sum assured less any claim paid from Layer 1. This means that if you suffer from a severe critical illness from the get-go without any claims on early/intermediate critical illness, you’d get the full 300% of sum assured. For example, your payout would be $300,000 if your sum insured was $100,000. However, if you claimed once or twice for early stage, you’d get 200% ($200,000) and 100% ($100,000) respectively instead.

Premium waiver after severe critical illness

This is different from the usual critical illness plan since the plan terminates after you get the payout. There are two advantages with this, as it means you are still protected and you do not have to carry the burden of premium payment during and after recovery.

Special benefit from certain illnesses

If you are diagnosed with one of the 18 conditions set out by Aviva, you will get an additional 20% increase for your sum insured, for a maximum of $25,000 per life per condition. These are the 18 conditions:

The list of special conditions that give additional sum assured for Aviva MultiPay Plan III.
The list of special conditions that give additional sum assured for Aviva MultiPay Plan III. Source: Aviva.

Several of the special conditions listed are children’s diseases, but there are conditions which are relatively regular such as diabetic complications and mastectomy.

Death benefit

Considering that critical illness plans are for the living, and not for the dead, the Aviva MultiPay Plan III has a death benefit component. Even so, the $5,000 death benefit is a paltry sum compared to most of the regular critical illness plans out there. Better than nothing, but you’d have better cover getting a regular life insurance for death benefit.

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The plan is a recent entrant in the critical illness market, and it stands on its own among the emerging multi-pay critical illness plans in the market. The lack of waiting period between early to intermediate stage critical illnesses is a nice feature. The waiting period between a cancer occurrence and a recurrent is two years, which is biologically and statistically sensible.

However, conditions that qualify for special benefits are a mixed bag. The inclusion of juvenile conditions is a push towards getting this plan for your children. However, it is good to note that there are other conditions that you’d get when you’re older, e.g., diabetes complications and osteoporosis with fractures. Breast cancer survivors who opt for mastectomy – a common procedure – can sigh a breath of relief from this feature as well.

As mentioned, with the relatively low amount of death benefit, you should get a proper life insurance as well.

Connect with fundMyLife financial advisers today!

Interested to know whether this plan, or other multi-pay plans are suitable for you? You should ask your financial adviser. Haven’t found a good financial adviser? Worry not – fundMyLife has your back. You can connect with our panel of experienced and awesome financial advisers, curated by us. Head on over to fundMyLife and ask our awesome financial advisers questions. Alternatively, you can check out our curated pool of individual advisers and ask them questions directly.

Been doing lots of research, but not sure who to engage to take the final step? Look no further! fundMyLife connects you to credible and incredible financial advisers privately and anonymously, based on the financial planning questions that you ask. We aim to empower Singaporeans to make financial decisions confidently.

Follow us on our fundMyLife Facebook page to get exciting updates and your dose of finance knowledge! Alternatively, the Insurance Discussion SG Facebook group is a good place to discuss insurance-related topics with fellow Singaporeans.

fML Reviews: Aviva MyLifeInvest

Aviva MyLifeInvest Review

Investment-linked policies, or ILP, are policies that features both investment and protection components. It’s often marketed as a plan that is flexible and is tailored for your needs. It also has high returns, in exchange for high risks. In this article, fundMyLife examines the features of Aviva’s only ILP, MyLifeInvest, and reviews it.

What is it?

Aviva MyLifeInvest is a regular premium ILP. It provides a lifetime coverage for death and terminal illness. It also provides coverage for total and permanent disability (TPD) until age of 70.

Noteable features

#1 Benefits when life-stage events happen

When you reach a new life-stage, you can raise your sum assured without a medical checkup. According to Aviva, it means a change in marital status, childbirth/new addition to the family, i.e. adoption, and approval of mortgage. Bear in mind you’ll have to apply within 3 months of the mortgage approval. On top of that, your change in life-stage requires proper documentation and evidence for the adjustment of benefits.

#2 Reducing coverage

Besides life-stage events where you increase your coverage, you can also reduce your coverage as well. In fact, you can even reduce your coverage to zero to maximize investments. However, you can only do so if either you reach 55 years old, or you have paid at least twelve years’ worth of premiums. On other other hand, increasing the sum assured after reducing it is subjected to medical underwriting.

#3 Riders

This product has several riders available:

  1. Level Term Cover – additional protection against death and terminal illness
  2. Early Critical Illness Cover – covers earlier stages of critical illness on top of regular ones
  3. Critical Illness Additional Cover
  4. Critical Illness Accelerated Cover
  5. Level Term Critical Illness Accelerated Cover
  6. Payer Critical Illness Premium Waiver Benefit
  7. Payer Premium Waiver Benefit
  8. Critical Illness Premium Waiver

In general the riders are categorized into three kinds: 1) enhanced coverage of death and TPD, 2) critical illness coverage, for both early and normal, and 3) premium waivers in the case of sickness or accidents.

Insurance cost

Turns out the product summary is not available publicly online. However, we contacted kind advisers from Aviva for a copy of the MyLifeInvest product summary. From there, we obtained more details on the insurance coverage charge for death, TPD, and critical illness riders separately.

#1 Death benefit

MyLifeInvest death charges
How much you need to pay per year for each $1,000 sum assured. Data obtained from MyLifeInvest product summary.

We observe that the coverage amount is relatively low until early 50s which then starts rising exponentially. Interestingly, the rates are not too different for male and female non-smokers and smokers.

#2 TPD

Aviva MyLifeInvest TPD Graph
The amount of money you need to pay each year per $1,000 coverage for TPD. Data obtained from MyLifeInvest product summary.

The charge for TPD is relatively low for the first 40 years of age, which then increases exponentially thereafter. However, the range of the amount is small, with the maximum of $7/$1000/year.

#3 Critical illness

Aviva MyLifeInvest CI graph
The yearly insurance charge for critical illness per $1,000 coverage. Data obtained from MyLifeInvest product summary.

The insurance charge for critical illness has a similar range to death, with the premiums mostly very low until the age of 50. After that, the premiums go up very quickly.

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As observed from the charts above, the premiums for death, TPD, and critical illness are relatively low for the first 50 years of age. The charges then increase exponentially thereafter. As such, this plan is useful earlier in your life as a means of cheap protection, not unlike term plans.

The option to minimize your coverage, and at some point to zero, is useful if you want to focus on your investments. Who is it for? We think it’s good for people who want to invest but needs a lot assistance – preferably together with a financial adviser who knows what he or she is doing. It requires active monitoring since insurance cover charge increases over time leaving you less to purchase units in funds.

While we obtained a copy of the product summary, there were several details missing such as the specifics for some of the riders, e.g., premium waiver conditions, early critical illness charge, etc. As such, you will have to contact the representatives for more information. However, based on our intuitive understanding of the rider names, think MyLifeInvest is a relatively modular ILP compared to the others out there. This is probably because MyLifeInvest is the only ILP from Aviva, which means it has to be very flexible to cater to as many people as possible.

Ask fundMyLife financial questions today!

That’s all folks! We hope you found the review useful and got more detailed information on what MyLifeInvest is all about.

If you’re still unsure about what you need, why not head on over to fundMyLife and ask our curated pool of financial advisers? Alternatively, you can check out our curated pool of individual advisers and ask them questions directly.

Been doing lots of research, but not sure who to engage to take the final step? Look no further! fundMyLife connects you to credible and incredible financial advisers privately and anonymously, based on the financial planning questions that you ask. We aim to empower Singaporeans to make financial decisions confidently.

Follow us on our fundMyLife Facebook page to get exciting updates and your dose of finance knowledge! Alternatively, the Insurance Discussion SG Facebook group is a good place to discuss insurance-related topics with fellow Singaporeans.