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AIA Power Critical Cover
24 Feb 2021 (370 views)

Dear Mr. Tan

Someone recommended me ( 62 years old) to buy the AIA Power Critical Cover. It covers 150 conditions for ALL stages. For $50k sum assured the premium is $4899pa. There is a multi claim policy of max 500% claim. There is also a surrender value at age 75 of 75% of sum assured ie $37,500 of $50,000. What is your opinion of this policy? Thank you.

Reply by TKL

I have studied the benefit illustration on this policy. My comments are:

I am not familiar with the complicated coverage provided by this policy.

You must ask the insurance agent to explain the policy in the manner that you can understand. It is not wise to ask a third party to explain the policy.

The benefit illustration said that you have to pay a total premium of $97,000 up to age 80 and $191,000 up to age 100. If you add interest at 3% p.a. the accumulated sum will be $135,000 and $380,000 respectively.

You should ask the agent to explain how much will be paid if you suffer any of the 150 conditions that are covered, if it occurs at age 70, 80 and 90. You can compare that payout with the premiums and decide if it is worth buying the policy.

 



AIA Power Critical Cover
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Dear Mr. Tan

Someone recommended me ( 62 years old) to buy the AIA Power Critical Cover. It covers 150 conditions for ALL stages. For $50k sum assured the premium is $4899pa. There is a multi claim policy of max 500% claim. There is also a surrender value at age 75 of 75% of sum assured ie $37,500 of $50,000. What is your opinion of this policy? Thank you.

Reply by TKL

I have studied the benefit illustration on this policy. My comments are:

I am not familiar with the complicated coverage provided by this policy.

You must ask the insurance agent to explain the policy in the manner that you can understand. It is not wise to ask a third party to explain the policy.

The benefit illustration said that you have to pay a total premium of $97,000 up to age 80 and $191,000 up to age 100. If you add interest at 3% p.a. the accumulated sum will be $135,000 and $380,000 respectively.

You should ask the agent to explain how much will be paid if you suffer any of the 150 conditions that are covered, if it occurs at age 70, 80 and 90. You can compare that payout with the premiums and decide if it is worth buying the policy.