[Analysis] Why China Taiping i-Secure is the best whole life plan for 2020
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). This is significantly more than comparable plans such as Income Star Assurance that covers you for 121 medical conditions and AIA Guaranteed Protect Plus(II) which covers 146 medical conditions. Moreover, China Taiping whole life insurance plan outperforms its competitors when it comes to covering early and late-stage critical illnesses. It covers 137 conditions of early stage, intermediate to late stage critical illness each while other plans such as Income Star Assurance and Aviva MyWholeLife Plan III covers 95 and 105 conditions of early stage critical illness respectively. 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.
Annual Premium Base on Male 20 Years Payment Term and 100,000 SA Non Smoker
Multiplier till 71
Multiplier till 86
Multiplier till 70
Multiplier till 70
|40 year Male, Smoker||$4,398.50||$4,770.00||$5,250.25||$6,757.00|
|40 year Male, Non- Smoker||$3,664.50||$4,000.00||$4,292.84||$5,137.00|
|40 Year Female, Smoker||$4,661.00||$5,052.00||$5,033.19||$6,010.50|
|40 Year Female, Non- Smoker||$3,813.00||$4,151.50||$4,255.39||$4,902.50|
While the medical coverage of this plan is extensive, another advantage that this plan has over its competitors is that it takes lesser money from your pocket base on the above permutation of 20 years premium term @ 2x multiplier of $100,000 sum assured. For a 40 year old male (both smoker and non-smoker), the annual premium to be paid is less than that to be paid for other insurance companies such as Aviva and Manulife base on certain permutation. In fact, even after paying extra to avail the China Taiping insurance that extends the multiplier to 86 years , the annual premium is 4,770 and 4,000 for a 40 year old male smoker and non-smoker respectively. With the exception of availing multiplier till 86 for Female smokers, the annual premium for China Taiping’s whole life insurance is cheaper than its competitors Manulife and Aviva.
For the above permutation as we can see, 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. Base on the permutation provided above, 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 is the offering 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 Income Star Assurance which only offers multiplier till age 70 and Aviva MyWholeLife Plan III which only offer the multiplier till age 65/70/75/80. Given its extremely competitive premium, this feature gives further assurance in terms of sufficient coverage to tide through 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 no 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 III 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.