[Analysis] Why China Taiping i-Secure is one of the best Whole Life Insurance Plan
With the proportion of older adults with multiple chronic diseases nearly doubling from 2009 to 2017, selecting an adequate whole life insurance plan is gradually becoming a necessity. Compared to term life insurance which’s purchased for a specified time period and provides only coverage, a whole life insurance plan usually covers you for life and provides for cash value accumulation in addition to death benefits. This also makes whole life insurance a more expensive option. Selecting a whole life insurance plan can be a tedious process given the many choices available today. To simplify your search, we’ve examined some whole life insurance policies to understand which provides the highest utility for the premium you pay. Based on these factors, we believe China Taiping i-Secure currently provides you with the best whole life insurance plan.
We select the China Taiping i-Secure Insurance Plans based on 4 basic criteria:
- Number of medical conditions covered
- Cheaper premium
- Higher surrender value
- Higher age limit to avail multiplier option
# Medical conditions covered
China Taiping i-Secure plan covers you for 161 medical conditions (42 Early Stage, 40 intermediate, 55 Advance Stage, 12 Special & 12 Juvenile Conditions). It has one of the most comprehensive coverage in the market. Moreover, China Taiping whole life insurance plan outperforms its competitors when it comes to covering early and late-stage critical illnesses. Given that Singaporeans lack 80% of critical illness protection needs and average Singaporean spends 8 out of 82 years in ill health, this is an extremely important factor to focus on. China Taiping whole life insurance plan’s extensive medical coverage makes it one of the most comprehensive in the insurance industry.
China-Taiping’s whole life insurance plan provides a higher surrender value percentage than most of its competitors. Surrender value is the amount the policyholder will get from the insurance company in case he decides to exit the policy during his lifetime, while China Taiping may not offer the most attractive cash value in return for the total premium paid, but it does provide a decent surrender value suppose if we take into consideration the lower total premium outlay @ and a compounded return of 4.75% p.a. factoring in distribution cost. However, it may be wise to note that these returns depend on the performance of the participating funds for each company
Where China Taiping edge above the rest in the offering of one of the highest multiplier option in the industry (till 86 years of age). The multiplier option works this way, a 2x multiplier option offers you the chance to get double the sum assured in till a specified age. China Taiping i-Secure typically offers 2 options for multipliers: till age 71 or 86 by paying slightly extra. This is better than the plans offered by its competitors E.g. Manulife and AXA which only offers multiplier till age 70 & 80 and Aviva MyWholeLife Plan IV which only offer the multiplier till age 65/70/75. Given its extremely competitive premium, this feature gives further assurance in terms of sufficient coverage to tide through beyond the average Singaporean lifespan.
What we don’t like
Before taking your decision to choose China Taiping’s whole life insurance plan, it’s important to keep a few things in mind. Firstly, China Taiping whole life is a relatively new branding in Singapore especially compared to industry behemoths like AIA Insurance which has been around in Singapore for decades. This means that China Taiping reputation could be its Achilles heel. Being new in Singapore also means that, unlike its competitors, China Taiping has lack of historical record of its par fund performance in delivering constant returns with regards to its surrender value. Also, keep in mind that unlike plans like Aviva MyWholeLife Plan IV which give you the option to receive monthly cash benefit from age 65 onward, the only way to cash out of China Taiping i- Secure plan is to either fully surrender the plan or take a policy loan. There’s no option of monthly income or partial surrender. What this means for you is that to get back your money from this plan, you have to either claim, surrender or take a policy loan.
All whole life plans have their own advantages and disadvantages. While for China Taiping’s whole life insurance plan we’re inclined to say that the advantages outshine the disadvantages, individuals should choose insurance plans based on their life circumstances and their objectives.