Complete Critical Illness Coverage: AIA says with its New Plan
AIA has recently launched AIA Complete Critical Cover (Critical Illness Standalone Term Insurance Plan to age 75 years).
Though it covers the breadth and depth of critical illness coverage, it is rather complicated, in my opinion. Other market offerings cover depth (e.g. Prudential PruMultiple 3X Crisis Cover) or breadth (e.g. GE and AXA’s Early CI Payout). Of course, terms and conditions apply in every plan. AIA attempts to do both with Complete Critical Cover.
Key product features are as follows:
Comprehensive Protection
Comprehensive Protection
AIA Complete Critical Cover offers protection against 30 common Major Critical Illness conditions. Unlike traditional Critical Illness plans, AIA Complete Critical Cover also covers 8 common Early Critical Illness conditions and 5 Catastrophic Critical Illness conditions.
Immediate Payout on Early Diagnosis
The plan pays out up to 25% of the Insured Amount in the event of a qualifying diagnosis of an Early Critical Illness. Note that Early Critical Illness benefit is subject to a maximum payable amount of $50,000 per Insured for Major Cancers, Heart Attack/Coronary Artery Surgery and Blindness.
Make Multiple Claims
In the event of a claim for an Early Critical Illness or Major Critical Illness, the plan will not terminate. You will continue to be protected and, if your condition deteriorates to a more serious or advanced stage, you may make further claims of up to 200% of the Insured Amount. It is also possible to claim for a combination of multiple Early, Major or Catastrophic Critical Illnesses up to a maximum of 200% of the Insured Amount.
Immediate Payouts up to 200% of the Insured Amount for Catastrophic Illness
For certain Catastrophic Critical Illnesses (e.g. Stage 4 Major Cancer, Stroke leading to inability to perform 3 out of 6 ADLs, Severe Heart Attack, Heart & Lung Transplant, Total Paralysis/Loss of Use of All 4 Limbs), the plan pays out an immediate lump sum equal to 200% of the Insured Amount less any amount(s) paid out previously.
Waiver of Premium Benefit
In the event of a Major Critical Illness claim, you can receive a payout of up to 100% of the Insured Amount, and you will no longer have to pay the future insurance premiums. Therefore, your Critical Illness coverage under the AIA Complete Critical Care plan will continue and you will remain eligible to make further claims of up to 200% of the Insured Amount.
Major Cancer Relapse Benefit
In the event of a successful claim for any of the Major Cancers covered under the policy, you will receive a payout of up to 100% of the Insured Amount. Following treatment, if your cancer goes into remission and you subsequently suffer a cancer relapse after 1 year of being in remission, you may be eligible to receive a further payout of 25% of the Insured Amount. This benefit is subject to the 200% limit on the total insured amount payable under your policy.
Immediate Payout on Early Diagnosis
The plan pays out up to 25% of the Insured Amount in the event of a qualifying diagnosis of an Early Critical Illness. Note that Early Critical Illness benefit is subject to a maximum payable amount of $50,000 per Insured for Major Cancers, Heart Attack/Coronary Artery Surgery and Blindness.
Make Multiple Claims
In the event of a claim for an Early Critical Illness or Major Critical Illness, the plan will not terminate. You will continue to be protected and, if your condition deteriorates to a more serious or advanced stage, you may make further claims of up to 200% of the Insured Amount. It is also possible to claim for a combination of multiple Early, Major or Catastrophic Critical Illnesses up to a maximum of 200% of the Insured Amount.
Immediate Payouts up to 200% of the Insured Amount for Catastrophic Illness
For certain Catastrophic Critical Illnesses (e.g. Stage 4 Major Cancer, Stroke leading to inability to perform 3 out of 6 ADLs, Severe Heart Attack, Heart & Lung Transplant, Total Paralysis/Loss of Use of All 4 Limbs), the plan pays out an immediate lump sum equal to 200% of the Insured Amount less any amount(s) paid out previously.
Waiver of Premium Benefit
In the event of a Major Critical Illness claim, you can receive a payout of up to 100% of the Insured Amount, and you will no longer have to pay the future insurance premiums. Therefore, your Critical Illness coverage under the AIA Complete Critical Care plan will continue and you will remain eligible to make further claims of up to 200% of the Insured Amount.
Major Cancer Relapse Benefit
In the event of a successful claim for any of the Major Cancers covered under the policy, you will receive a payout of up to 100% of the Insured Amount. Following treatment, if your cancer goes into remission and you subsequently suffer a cancer relapse after 1 year of being in remission, you may be eligible to receive a further payout of 25% of the Insured Amount. This benefit is subject to the 200% limit on the total insured amount payable under your policy.
In comparison, PruMultiple Crisis Cover is a term plan that provides financial protection against critical illnesses. The insured can claim up to three times for different critical illnesses diagnosed at different times during the term of the policy. This plan is available for policy terms from 20 to 98 years, subject to coverage up to age 99.
It is important to highlight the following key waiting periods on PruMulitple Crisis Cover:
1. Survival Period of 30 days prior to 1st claim
2. Waiting Period for various CI groups
a. Group 1- Major Cancers A 2nd claim is allowed for group 1 provided the 2nd claim comes after a 5yrs cancer free period.
b. Group 2 – Major Organ failure A 5yrs cancer free period is imposed for claim under Group 2 if the insured had a previous claim under Group 1.
c. Group 3 – Heart-related One year waiting period is imposed for claim under Group 3 if the insured had any previous claim under any other Groups.
d. Group 4 – Neuro-muscular (e.g. Alzheimer’s) One year waiting period is imposed for claim under Group 4 if the insured had any previous claim under any other Groups.
e. Group 5 – Infectious (e.g. bacterial meningitis) One year waiting period is imposed for claim under Group 5 if the insured had any previous claim under any other Groups.
f. Group 6 – Accident-related (e.g. major burns) One year waiting period is imposed for claim under Group 6 if the insured had any previous claim under any other Groups.
g. Group 7 – Sensory Loss (e.g. blindness) One year waiting period is imposed for claim under Group 7 if the insured had any previous claim under any other Groups.
Group 1 – Major Cancer
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Group 2 – Major Organ Failure
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Group 3 – Heart-related
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- Major Cancers
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- Aplastic Anaemia
- End Stage Liver Failure - End Stage Lung Disease - Fulminant Hepatitis - Kidney Failure - Major Organ / Bone Marrow Transplantation - Primary Pulmonary Hypertension - Progressive Scleroderma |
- Coronary Artery By-pass Surgery
- Heart Attack - Heart Valve Surgery - Surgery to Aorta |
Group 4 – Neuro-Muscular
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Group 5 – Infectious
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Group 6 – Accident-related
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- Alzheimer's Disease / Severe Dementia
- Benign Brain Tumour - Coma - Motor Neurone Disease - Multiple Sclerosis - Muscular Dystrophy - Parkinson's Disease - Stroke |
- Bacterial Meningitis
- Encephalitis |
- HIV Due to Blood Transfusion
and Occupationally Acquired HIV
- Major Burns
- Major Head Trauma |
Group 7 – Sensory loss
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- Blindness (Loss of Sight)
- Deafness (Loss of Hearing) - Loss of Speech | ||
Survival period of 30 days applies to claims be it Early Critical Illness, Major Critical Illness, Catastrophic Critical Illness or Major Cancer Relapse. No additional waiting period (other than for Major Cancer Relapse) applies so long as the claim is for a different group of Critical Illness or if the condition has deteriorated to a more serious advanced stage.
Plan Promotion from AIA:
Those who are keen and sign up for AIA Complete Critical Cover plan between 29 December 2009 and 9 March 2010 enjoy a 25% savings on the first year premium.
