Seth’s Blog on Finance

NTUC Income VivoCare – Early Stage Critical Illness Whole Life Policy

I attended NTUC Income’s event this morning for the launch of VivoCare, a whole life policy that primarily focuses on providing early stage critical illness cover.

Traditional critical illness policies typically define critical illnesses as “late stage” conditions. For instance, a payout will be made only if both kidneys have failed. Under an “early payout” policy, the surgical removal of a single kidney can be admitted for a claim.

The policy pays 50% of the sum assured subject to a maximum sum of $75,000 plus pro-rated bonuses the policy has accumulated for diseases classified as “Early Stage”. Remaining sum assured subject to a maxiumum sum of $150,000 plus pro-rated bonsues will be paid for diseases categorised as “Intermediate Stage”.

E.g. If a person purchases a $100,000 VivoCare policy and meets the definition of one of the early stage critical illnesses, he will receive a claim amount of $50,000 (50% of $100,000) plus any pro-rated bonuses the plan has accumulated. He will have a remaining sum assured of $50,000, which will be paid out to him if his condition worsens to meet an intermediate or advanced stage critical illness.

Further to the critical illness coverage, VivoCare features a 300% sum assured upon death or terminal illness of the insured until age 65. There are also additional payouts made for other illnesses not falling under the list of critical illnessess such as angioplasty, severe rheumatoid arthritis, diabetic complications and severe osteoporosis.

As with other policies of similar nature offered by other companies, such assurance comes with a significant cost. Moreover, VivoCare is a participating whole life policy which can be quite costly. A given example of a 35-year-old non-smoking female would have to pay an annual amount of $3,397.95 with a paying term of 20 years for a $100,000 VivoCare policy. I personally prefer to see a standalone term and rider version without attached cash values.

People have to be mindful of the cost-benefit ratio when it comes to such coverage, and consider whether one’s essentials have been taken care of before spending precious budget.

The information provided is for general illustration only and does not constitute the specific terms and conditions. Refer to the relevant Benefit Illustration/Policy Document for exact terms and conditions.