Difficult to understand the coverages under these insurance policies

 A policyholder has two insurance policies. She asked me to look at the coverages of these policies and help her to decide which policy to keep and which to give up. She needs to reduce her budget.

I studied the two policies and asked her to check with the insurance companies on the following:

AXA policy

You are covered for $150,000 in death benefit, terminal illness and permanent total disability and pay a premium of $150 a year.

You also have supplementary living accelerator benefit for $150,000 without the need to pay any premium.

It covers "a selected proportion of the sum assured" but does not specify the amount.

You need to ask AXA to explain what is being covered under the SLAB and what is payable in the event of a claim.

Otherwise, the premium of $150 a year sounds quite reasonable.

Tokyo Marine policy

You have to pay a premium of $519 a year for a sum assured of $100,000 and a minimum benefit of $250,000.

I do not know what is being covered.

You have to ask TM to explain the coverage to you.

The premium of $519 a year seems to be very high.

I find the two policy documents to be "horrible". I cannot understand what is being covered. It is not clear.

Maybe, you should send the documents to MAS and ask MAS to get the insurance companies to write policy coverages that are clear to the lay person.

I cannot understand why consumers accept policy wordings that are written in a very confusing manner and why MAS allows insurance companies to issue this type of policy wordings.

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