Financial Adviser Representatives Recommendations and Comments

Proposer/ Life Assured: Eng Kok Wee

Plan 1 :
Plan Name: ManuProtect Life 25 with Critical Care Xdvance Rider
Sum Assured (Death, TPD, CI): $100,000
Minimum Protection Benefit (Death, TPD, CI): $300,000
Premium Term: 25 Years
Premium: $2402.30/Annum
Plan 2 :
Plan Name: AXA Term Protector with Critical Illness and TPD Benefit
Sum Assured (Death, TPD, CI): $250,000
Minimum Protection Benefit (Death, TPD, CI): $250,000
Premium Term: 10 Years
Premium: $305.60/Annum
Plan 2:
Plan Name: AIA Healthshield Gold Max A with Essential
Premium: $232/ annum (Medisave); $350/ annum (Cash)
Background
I got to know Kok Wee through a workshop, and he approached me to help him to review on his protection planning. He has
concern on this portion, as his mum just passed away last year due to breast cancer. His dad inherited 300K, and he wants to be
like his mum, if anything to happen, he does not want to be the burden to his family. Client is a DXO in MINDEF and he has intention
to further studies by end of this year. His dad will be supporting him financially during that period when he is studying.
After reviewing on his current finances, he has total coverage of 450K Death, TPD and 70K Critical Illness (as per attached
Summary of Risk Management Details). His dad is currently servicing the plan AIA Prime Life for him, thus he would like to just put it
as status quo for that plan.
I explained to him the characteristics of different insurance plans which cover Death, TPD, CI and disability income (whole life,
investment-linked plan, term plan and hospitalization). After much discussion, Kok Wee expressed his discomfort with ILP as he
understands that the cost of insurance increases according to age and the premium has to be serviced for his whole life in order to
enjoy lifetime coverage. Thus, he prefers a plan which entails guaranteed cash value component yet has limited payment term.
Thus he would like to review on the ILP plan that he has just signed up in Oct 2014.
He would like to have coverage of 500K for death, TPD and CI as he feels the importance of covering himself sufficiently, but he
wants to maintain the premium at about $250 to $300 monthly. Ive highlighted to client that his current ILP plans covers him for
early CI, therefore, Ive taken this into consideration during the proposal.
Ive presented 3 proposals (as per attached) to client, and he chose Option 1: ManuProtect Life 25 which allows him to enjoy the
minimum benefit for Death, TPD and CI which covers up to age 70. He likes it where he just needs to pay for 25 years and enable
him to enjoy lifetime coverage if compared to ILP. And due to budget constraint, he chose not to cover himself for early CI at this
point of time, and will review after he is back from studies.
And meanwhile, he would like to cancel his AIA ILP (Family First Secure) and replace with ManuProtect Life, but since he has paid
annual premium till Oct 2015, he will lapse this plan during anniversary this year, so that he is still able to enjoy his coverage for this
plan. With this, he can save a total of $45,542.50 if he continues paying the plan to age 65 (Refer below table 1 for comparison).
Client is aware that he losses $2,400 upon surrendering the plan in Oct 2015. He feels that it is more important to cover him
sufficiently with the same amount of money for Death, TPD as well as CI. He feels that it is not crucial to cover for Early CI for this
point of time, and he is agreeable with the replacement.

Signature of Client(s): _____________________

Signature of FA Rep: _________________

Name of Client(s): _________________________

Name of FA Rep:____________________

Date: __________________

Date: ____________________

Financial Adviser Representatives Recommendations and Comments

Table 1

And for his term plan (AIA Secure Term 10 Yr), Ive informed client that he is covered himself for death and TPD 300K only and
comparison was done with Tokio Marine (Refer Term Plan comparison table below). Client highlighted that he feels that it is more
crucial for him to cover for CI instead for death and TPD only, thus he requested to add CI into his term plan to make up a total
coverage of $500K together with his limited payment whole life plan. He doesnt want to approach his current AIA agent to add any
rider to the current plan since it is more expensive than other company.
Therefore, comparison was done between NTUC and AXA Term Protector for 250K Death, TPD and CI (TM not into consideration
for comparison as minimum coverage for TM Term is 300K), client chose AXA due to budget constraint, and he would like to use this
plan to replace his current AIA Secure Term Plus which only covering him for death and TPD only. He is agreeable to lapse this plan
upon anniversary Dec 2015 since he has paid for annual premium and he is still able to enjoy the coverage till then.
Term Plan Comparison

So as conclusion, client was paying $2,637 annually to cover himself for $400K Death, TPD and 70K CI coverage includes Early CI,
but with the switch client will be paying $2,707.90 annually for coverage of $550K Death, TPD and CI. Client is comfortable to go
ahead with the switch even though he has to pay additional of $70.90 annually but he is able to enjoy more coverage especially on
CI portion. He is comfortable with no early CI coverage at this point of time. And client is comfortable to go ahead with the
application now as he is able to enjoy more coverage for the time being until the plans lapse.
I've educated client the importance of getting himself covered for hospitalization expenses as well. He is now covering with AIA
Healthshield Gold Max B without rider. Client would like to upgrade it to Healthshield Gold Max A with Essential Rider, so that he will
be covered even for private hospital and both co-insurance and deductible will be covered as well.
Recommendation
ManuProtect Life 25 with Critical Care Xdvance Rider, is being recommended as it is a regular limited premium whole life plan
provides coverage for Death, TPD and CI. Client is able to choose Minimum Protection Benefit (MPB) and the MPB covers up to
age 70. And after 70, the total death benefit will be the sum assured plus non-guaranteed bonuses.

Signature of Client(s): _____________________

Signature of FA Rep: _________________

Name of Client(s): _________________________

Name of FA Rep:____________________

Date: __________________

Date: ____________________

Financial Adviser Representatives Recommendations and Comments

AXA Term Protector with Critical Illness and TPD Benefit is being recommended as it provides coverage for Death, TPD and CI
in the most cost effective way.
AIA Healthshield Gold Max and Gold Max Essential is being recommended as a cost effective tool to cover hospitalization needs
from 1st dollar onwards.

Remark
Client is aware of the 14 days free look period for ManuProtect Life 25 and AXA Term Protector.
Client is aware of the 60 days free look period for AIA Healthshield Gold Max and 14 days free look period for AIA Gold Max
Essential.
Client is also aware that the premium is not guaranteed and subjected to changes by insurer for major illness, disability income and
HNS coverage.
The remanding benefits and limitations of all the plans have been explained to client, and he has been advised to refer to product
summary and policy contract for avoidance of doubt, if any.

Signature of Client(s): _____________________

Signature of FA Rep: _________________

Name of Client(s): _________________________

Name of FA Rep:____________________

Date: __________________

Date: ____________________