AIA Triple Critical Cover Insurance

According to the Singapore Cancer Registry Annual Report 2015, about 35 Singaporeans are diagnosed with cancer every day. This is a frightening statistic which gives me countless sleepless nights. As a sole breadwinner, it is important that I am covered adequately so that my family will not be financial affected if I am struck with anything untoward. In my last update on my insurance coverage in 2018, I revealed that I had purchased an endowment plan from NTUC Income. But I have forgotten to update that I had also purchased AIA Triple Critical Cover.

In this article, I will share my motivations for buying AIA Triple Critical Cover. I will also share the merits and limitations of AIA Triple Critical Cover. Note that this article is not sponsored by AIA nor am I giving any financial advice. I am just sharing my personal experiences. Readers should engage financial consultants if in doubt because everyone’s financial situation and needs are different.

What attracted me to buy AIA Triple Critical Cover insurance was because of its unique selling point of ‘Power Reset’ feature, which restores the critical illness coverage amount back to 100% even for early stage critical illnesses. However, there are a major drawback for this policy that I will like to share so as to provide a more balanced review. I will also reveal how I go about to mitigate this risk.

Review of AIA Triple Critical Cover

Since the age of 18, I had been buying insurance policies. My late father’s devastating stroke had inflicted much financial hardship and I am determined not to let my own family members go through the same journey. I view insurance as key shield in protecting my family against financial losses. Thus, in buying insurance policies, I had always prioritized protection over savings and retirement planning. Prior to buying AIA Triple Critical Cover, I have portfolio of term, whole life, private integrated shield and endowment plans. However, during my last annual review, my spouse and I felt that there was some gap in our coverage.

Most of the term insurance policies cease coverage after a claim. But in a person’s lifetime, he may suffer a cancer relapse or several major illnesses. In such circumstances, it becomes much harder for him to obtain further critical illness coverage. AIA Triple Critical Cover addresses this with its ‘Power Reset’ feature.

I have purchased Aviva MINDEF Living Care policy in 2016 with coverage of $300,000. The monthly premium is less than $30 and this plan covers me against 37 common critical illness until 70 years old. Although the monthly premium is quite affordable now, the rate will skyrocket to $242 monthly when I reach 61 and then reach almost $500 monthly by the time I am 70. For my AIA Triple Critical Cover, the annual basic premium is $3123 till the age of 100. In comparison.

Even though I may be paying a high premium for my AIA Triple Critical Cover now, the premium is actually fixed until I reached 100 years old. This means that when I reached 70, the premium for my AIA Triple Critical Cover will become lesser than that for my Aviva MINDEF Living Care policy. In other words, my AIA policy will serve as an hedge against the event in which I am unable to pay the premiums for my Aviva policy when I have retired.

Drawback of AIA Triple Critical Cover

An interesting thing about the ‘Power Reset’ feature of AIA Triple Critical Cover is [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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