AXA’s whole life insurance has rarely feature as one of the best whole life insurance plan in the market,…
[Analysis] Why China Taiping i-Secure Legacy 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 Legacy currently provides you with one of the best if not best whole life insurance plan.
This article has not been reviewed by China Taiping, while we are financially compensated by them, we maintain our editorial integrity and review products objectively. Information is correct as of 27th May 2022
We like the China Taiping i-Secure Legacy Insurance Plans based on 4 factors:
- Extensive medical conditions covered
- Good surrender value
- Higher age limit to avail multiplier
- 50% Multiplier benefit that last beyond Multiplier age – First in Market
Extensive Medical Conditions Covered
China Taiping i-Secure legacy 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.
Good Surrender Value
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, it does provide a healthy surrender value suppose if we take into consideration the better coverage @ and a compounded return of 4.25% 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
Higher age limit to avail multiplier
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 76 or 86 by paying slightly extra. This is better than the plans offered by some of its competitors which only offers multiplier till a max age of 80. Given its extremely competitive premium, this feature gives further assurance in terms of sufficient coverage to tide through beyond the average Singaporean lifespan. Base on most permutations that we have derived, The China Taiping i-Secure Legacy provides enhanced coverage till age 86 at a lower premium for the same permutation as the other insurers till age 80.
50% Multiplier benefit that last beyond Multiplier age – First in Market
Of all it’s valued preposition, the benefit that stands out the most is that China Taiping offer a lifetime multiplier benefit beyond the multiplier age limit of 76/86. Not only will the insured enjoy immediate higher coverage of a 2x, 3x or 4x sum assured till the stipulated age of 76 or 86, customers will also enjoy a continuous lifetime multiplier that maintains at a minimum of 50% of the guaranteed benefit after the stipulated age of 76/86. There is a 10% gradual reduction of multiplier each year till it reaches a floor of 50% of the multiplied sum assured which will then remain thereafter from age 80/90 respectively.
Comparison Age 31NB Male Non Smoker 100,000 Sum Assured with 4x Multiplier
|Company A||Company L||Company S||Company X|
|Early CI Coverage||200,000||200,000||200,000||200,000||200,000||200,000|
|Multiplier to Age||76||86||70||70||70||70|
Point to Consider
Before taking your decision to choose China Taiping’s whole life insurance plan, it’s important to keep a few things in mind. While China Taiping is a relatively new whole life insurance company in the market, they are not new to insurance. At the end of the day, China Taiping Life policies are protected by the policy owner’s protection scheme, and insurance companies re-insure the risk with bigger companies known as reinsurers, so your policy are very safe. Probably the main disadvantage for being a new life insurer is that China Taiping lacks par fund performance to show their investment returns. But if the purpose is coverage, that should not be a concern because the coverage is guaranteed by the insurer as reflected in the policy documents.
Also, keep in mind that unlike plans like certain insurers which give you the option to receive monthly cash benefit from a certain age onwards, the only way to cash out of China Taiping i- Secure Legacy 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. Another disadvantages is the higher minimum sum assured of $75,000 which reduces the customers flexibility in maximising value from a policy that allows a much lower minimum sum assure value.
All whole life plans have their own advantages and disadvantages. While China Taiping i Secure Legacy may cause major disruption in the whole life market, individuals should still choose insurance plans based on their life circumstances and their objectives.