Through my course of work, I have come across many people who want to have both protection against the hazards of life, as well as growth their wealth. The problem is that they feel that they don't have enough resources to do both. This month we look at a possible solution that marries both Protection and Wealth Accumulation - an arrangement flexible enough to provide money when it's needed.
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In 2011, the Total Protection Needs of Singaporean working adults was estimated to be $1,193 billion.
However, the Total Life Insurance Coverage was only $609 billion. Therefore the Protection Gap was $462 billion.
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On another note, 41% of Singaporeans revealed they have never saved for retirement.
Close to 90% of Singaporeans are sure they cannot afford a comfortable retirement.
Perhaps the above apply to us. Maybe we're juggling between having enough protection and wanting to grow our wealth.
As we progress through life, our needs change – Landing our ideal job, marriage, paying for our dream house, children's education, retirement, and even welcoming our first grandchild. What we need is a financial plan that can keep up with us.
Introducing, AIA Family First Secure (FFS) – the perfect plan that keeps up with our ever-evolving needs.
AIA FFS is a regular premium investment-linked plan (ILP) that meets our protection needs in the earlier years, retirement needs in our later years, and various expenses in between. With affordable premiums from as low as S$100 per month, we can get a head start in Protection and Wealth planning.
FFS also comes with optional benefits such as the Early Critical Protector rider that offers protection against up to 89 Medical Conditions and 6 Special Conditions; as well as the Waiver of Premium on CI rider.
An Example...
Christopher Lim, 35-year-old non-smoker, purchases an AIA FFS plan with a sum assured of $100,000 that gives him coverage against Death and TPD. He adds the$100,000 Early Critical Protector rider and Critical Protector Waiver of Premium rider.
At 55, he is diagnosed with early stage Prostate Cancer. He receives a lum sum of S$100,000 under the Early Critical Protector rider and his basic policy continues to provide him with Death and TPD cover for S$100,000 while his savings continue to grow.
The cancer later progresses into an advanced stage and his future premiums for his policy are waived while his policy's investments continue to accumulate. With this, Christopher can focus on his treatment without having to worry about the high costs of medical care.
If Christopher passes away at age 65, his family receives a Death Benefit of S$100,000 plus the investment value. If he retires, he’s able to withdraw the entire investment.
