The Great Family Care is the newest critical illness plan to be introduced by Great Eastern. It was designed with the sandwiched generation in mind. It is the first of its kind – a multi-generational critical illness term plan for policyholders which not only provides coverage for themselves (i.e. the policyholder), but also some critical illness coverage for their children and parents.
In this article, we will review the Great Eastern Great Family Care, explore its various features and explain the key details you need to know before you contemplate whether you should buy it or not.
#1 Great Family Care Is A Critical Illness Term Plan
This policy is a term plan that provides coverage for the policyholder up till age 85. This means is that there is no savings or investment features, surrender/cash value or maturity benefit at the end of the policy. The aim of this policy is to provide coverage for the policyholder, his/her children and parents (if any) during the term coverage period.
#2 Premium Payments and Payouts
The term premiums are paid at the start of each term, annually or monthly depending on the policyholder’s preference, until he/she reaches the age of 85. Payouts are in the form of death benefit which is a lump sum payout if an eligible claim is made. The sum assured for the policyholder ranges from as little as $50,000, to as high as $3,000,000.=
#3 Child Protect
Great Family Care will include coverage for the policyholder’s children under the feature called Child Protect. Under Child Protect, 25% of the plan’s sum assured, up to $50,000 per child per life assured, will be paid out if the child is diagnosed with any of the covered conditions, which include 53 critical illnesses and 25 juvenile conditions.
4 things to take note of for Child Protect:
– The child must be age 16 or less when the policy is issued
– The child must be age 18 or less when diagnosed with any of the covered conditions
– The child need not have been born as at the policy issue date
– All of the policyholder’s children will be covered under this plan
It is important to note that Child Protect coverage is tied to the parent’s policy. If/when the policy lapses, insurance coverage for the children also stops.
#4 Parent Protect (Optional Rider)
Buying insurance for children is common but buying insurance for parents can be challenging. This plan offers coverage to policyholders’ parents as a rider, called Parent Protect. The policyholder can choose to add on this feature at additional premium costs. The rider covers 3 critical illnesses: 1) major cancers, 2) Parkinson’s disease and 3) Alzheimer’s disease/severe dementia. Even with existing chronic diseases like diabetes or chronic conditions like high blood pressure, the parent will still be eligible for coverage of the 3 critical illnesses.
Under Parent Protect, either of the following will be paid (whichever is higher).
– 15% of the plan’s sum assured, or
Here are 2 scenarios to help you better understand.
Scenario #1: If the policyholder purchases $50,000 coverage, the Parent Protect payout will be $15,000.
Scenario #2: If the policyholder purchases $200,000 coverage, the Parent Protect payout will be $30,000 (15% of $200,000).
To qualify for Parent Protect
– Policyholder’s parent must be age 80 or less, and
– The diagnosis of the either of the 3 critical illnesses must occur before the parent is of age 100.
Parent Protect is paid once, up to a maximum of $50,000 per parent per life assured which will terminate after payout and the total coverage per parent is capped at $100,000.
#5 Medical Underwriting
Existing Great Eastern, Dependents Protection Scheme (DPS) or ElderShield policyholders can enjoy coverage with no medical underwriting required. Similarly, no medical underwriting is required for the Parent Protect rider. To find out more, you can contact your servicing agent through Great Eastern’s customer service.
Other Things To Note
Firstly, for Child Protect & Parent Protect, only from year 3 onwards, 100% of the eligible payout can be claimed.
– If the diagnosis of the Covered Condition and/or critical illness is made in year 1 (of buying the policy), no payout will be made.
– If the diagnosis of the Covered Condition and/or critical illness is made in year 2, 50% of the eligible payout will be made.
Secondly, as per various other plans
– There is a 14-day free-look period.
– Any covered conditions and/or critical illnesses that is or caused by a pre-existing condition will not be claimable under this policy.
This plan is good for anyone who is planning to have children in the next few years, as it covers all policyholder’s children up till age 18 and 100% of the eligible payout (for Child Protect) can only be claimed from year 3 onwards. The Parent Protect is also a beneficial option as it covers the 3 more common critical illnesses Singaporeans face.