Whether we’re planning for a comfortable retirement, or looking to provide for our loved ones if we pass away unexpectedly, it’s now more affordable than ever to get the right amount of cover. There are many products and tools out there but the first question we should ask ourselves is: How much is enough coverage? The answer will vary as our life stage changes. Thus the tools we use have to be flexible enough to keep up with our changing needs.
This month we introduce the AIA Family First Protect. It is an innovative tool that is flexible enough to follow us through the different stages of our lives.
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We go through many stages in our lives from taking on our first job to getting married, welcoming a baby, planning for our children’s university education, preparing for retirement...
As we progress in life, our needs will change. As a result, our protection and coverage needs will change too.
This is where AIA Family First Protect comes in handy. It is an Investment-linked Plan (ILP) that provides us with a level of protection suited to our family’s unique needs, at affordable premiums. The level of flexibility allowed by the AIA Family First Protect is almost unmatched in the market.
Here are three ways the AIA Family First Protect plan can benefit our family:
1) Affordable Cover
The plan offers one of the highest amount of cover per dollar for the premiums we pay. For instance, a 33-year-old father supporting his wife, young child and mother is able to meet all his life protection needs for only $9.50 a day (based on a 33-year-old male non-smoker with an Insured Amount of S$495,000 for death and TPD benefits). More amazingly, premium levels can be adjusted as well. This allows the plan to grow with us as we progress in life.
2) The amount of cover we need, when we need it
Our needs are unique to our current circumstances. That’s why AIA Family First Protect enables us to choose the amount of cover that’s right for us and our family. This level of coverage can be increased or decreased as our needs change over time. For example, we can maximise our protection during our income earning years when our family depends on us; then reduce it later in life to focus more on growing our savings for retirement.
We can also choose from an extended range of protection options, using riders that cover unexpected events such as disability, critical illness, accidents and hospitalisation.
In the event of our passing, our family will receive a death benefit that comprises both our chosen cover amount plus the cash value of our policy.
3) Flexible plan to meet our financial goals
Besides protection, we can also select from a wide range of ILP sub-funds managed by professional Fund Managers. These tap on opportunities in various asset classes and market sectors. We can also switch funds at any time when our risk profile or investment strategy changes. Furthermore we are able to access our cash whenever we need it by making use of partial withdrawals.
Example,
At 29 years old
Mr Edwin Chua is a 29-year-old IT manager. He lives with his parents and is also engaged to be married. Mr Chua has a Financial Health Check and determines that he requires S$200,000 of coverage. At this stage of his life, he’s also interested in gaining potentially higher returns on his investment. He buys the AIA Family First Protect plan, and as a non-smoker, he pays a premium of S$250 per month. For added protection, he chooses to take up the optional Total Permanent Disability Benefit.
Our investment risk profile, like our protection needs, may change over time.
