5 Insurance Plans Everyone Needs

This is adapted from the article that came from Straits Times. While the Straits Times article said that there are only 4 types of cover a person need, I believe that there are 5 types of cover.

1. Death Cover.

2. Medical Cover.

3. Critical Illness Cover.

4. Disability Cover.

5. Personal Accident Cover.

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Manulife's Life Protector Plus

Manulife has a participating whole life policy called Life Protector Plus that is designed to provide high coverage at affordable premiums. For a male non-smoker age 27, coverage of $240K can be obtained at a monthly premium of $194. How it provides such a high coverage is with something called the Minimum Death Benefit (MDB) factor that depends on the entry age of the policy holder. Each band of entry age has a different MDB factor. Age 0 to 30 = 2.4 Age 31 to 35 = 2.15 Age 36 to 40 = 1.90 Age 41 to 45 = 1.65 Age 46 to 50 = 1.40 Age 51 to 55 = 1.20 So the basic sum insured for a guy age 27 is actually 100K but due to the MDB factor of 2.4, his coverage is increased till $240K until he is age 65. Thereafter, the MDB factor drops to 1.0 Do note that with any surrender of reversionary bonus or coversion of policy to reduce paid up, the MDB factor will drop to 1.0 This MDB factor also applies to the Critical Care Enhancer Rider (for critcial illness) up to age 65 too.

AIA Signature - Protection for the priviliged few

I received a letter from AIA recently. It reads: In appreciation for your continued loyalty and support, we'd like to extend an exclusive invitation to you to apply for our first premier accident plan - AIA Signature. The AIA Signature plan offers you our highest level of accident protection, with coverage up to $500,000. The invitation is for a select group of priority AIA policyholders, of which you are one. Available for a limited time, this exclusive offer is valid from 15 Oct 09 to 28 Nov 09 and is strictly by invitation only. With AIA Signature, you can enjoy: A high coverage amount of up to $500,000 for Accidental Death, Dismemberment and Permanent and Total Disability Accidental Medical Reimbursement of up to $2000 Premiums do not increase with age And the above coverage is yours at only $400 until age 75. No health questions ask and no medical examination is required. I am not too sure what is so special about this accident plan because accident plans normally do not requi

PruWealth Endowment Plan

As stated in its benefit illustration, PruWealth is a participating regular premium endowment insurance plan. Unlike other endowment plans, PruWealth is meant to be long term wealth accumulator that matures only when the life assured turns 100 years old. That means the plan does not mature in your typical 20 to 30 years that is common in other endowment plans. Of course, that depends too on the age you are when you purchased the plan. Some interesting features of this endowment plan are as follows: There are various options of premium paying terms ranging from 5 years, 10 years, or 20 years. This basically means it is a limited pay plan where you just need to pay regular premiums for a certain number of years and can stop paying thereafter. Death benefit will always be higher than the amount of premiums put in. This is typical of any endowment plan so I won't elaborate any further. Surrender value comprises both guaranteed and non-guaranteed components. For a 10 year lim

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