Term and critical illness

Hi Mr Tan,

I am one of many grateful (and faithful) readers of your blog. Thank you to much to being ever so obliging in answering our questions. I got a quote for a term policy as follows:

Sum Assured Term Yearly Premium
Term Basic 100,000 35 years 315.00
Disability 100,000 35 years 49.00
Crisis Cover 100,000 35 years 580.00
Crisis Waiver 12.05

I compared it to the benchmark rates on your site and found that the basic policy is very close to the benchmark rate.

However, I am not sure if I need the crisis cover and the disability riders. They cost more than the basic itself! My agent highlighted that death benefit would continue even though a claim had been made under crisis cover, so the cover becomes $200 000. Is this a necessary and fair quote?

REPLY
In my view, the critical illness premium should be about 1.5X of the term premium. I find the premium to be somewhat high (i.e. 1.8X). You do not need such a large amount of critical illness cover. Maybe, it is better to have $150,000 in Term and $50,000 in critical illness. You should also consider buying a decreasing term insurance, as the cost is reduced by more than 50%

I suggest that you should get a quote from another insurance company on the term and critical illness cover. You can contact them as follows:
http://www.tankinlian.com/faq/termd.html