New Product by Prudential & Great Eastern

Prudential has come up with a new product; Pru Multiple Crisis Cover(PMC).

Interestingly, it works differently as compared with other term plans in the market. As the name suggests, it’s a term protection plan specially designed to cover major illnesses. On top of that, the special feature includes one can claim up to 3 times, subjected to the terms and conditions.

They have categorized the different types of insurable major illnesses into 7 big groups.

Group 1: Major Cancers
Group 2: Major Organ Failure (kidney/liver failure)
Group 3: Heart-related (heart attack, by-pass)
Group 4: Neuro-Muscular (stroke, Alzheimer’s, coma)
Group 5: Infectious (bacterial meningitis)
Group 6: Accident related (burns)
Group 7: Sensory Loss (loss of sight/speech)

As mentioned, the max number of claims is 3 times. It’s subjected to a max of 2 cancers claims, including relapses of the same cancer with a 5 year waiting period in between. Meaning, if the relapse happens within 5 years, it’s not claimable. Also, any other 2nd claims must come from other different groups of major illness(only major cancers group can claim twice), also subjected to a 1 year waiting period. Death benefit is a flat $3000.

When I first got to know this plan, a cynical smile uncontrollably spreaded across my face. For I’m sure this plan with it’s “can claim up to 3 times” undeniably will stir quite a lot of attention, especially from kiasu Singaporeans who always think “more is good”.

Let me do an analysis for you. I’ll be fair, I promise. Pros and cons included. =)

Pros:
Pro 1) Usually after one is diagnosed with a major illness or is undergoing treatment, he/she cannot buy any more insurance plans because they will mostly be rejected.

PMC provides protection against other major illnesses even after diagnose of any major illness.

Pro 2) There’s a waiver of premium right after the diagnose of any major illness. Meaning, one need not continue to fork out extra costs to maintain a term policy but still enjoys the protection.

Pro 3) One can claim up to 3 times, assuming one is really that suay to kanna major illnesses again and again. And cancer claims can claim for a max of 2 times, including relapses.

Here comes the cons, in conjunction with the pros

Cons:
The cons are in fact all related to how the claim can be approved.

For a 2nd and 3rd claim if any, the major illness MUST come from a different group of major illnesses and they largely lowers the probability and possibility of successful claims. Because it’s like, if you suffered a Heart Attack under Group 3(heart-related) and did a 1st claim, subsequently, you cant claim 2nd time for any by-pass surgery or heart valve surgery etc because they’re in the same group. And we know usually the virus loitters around the same area huh because it’s all inter-connected.

What’s more, even if one contracted major illness from different groups, they also have to be subjected to a 1 year waiting period. So it’s like, if one contracted liver cancer(group 1 major cancers), did the first claim, but within a year was involved in an accident and hence lost his sight, i.e, became blind(group 7 sensory loss), the claim also wont be entertained. That will again, further reduce the probability of a successful claim.

And another thing is, it’s very low chance that anyone can contract TWO major illnesses in his life bah. I mean, ONE is enough to take your life. Usually GOD wont be that…you know. Unless you’re very sway…just my personal opinion. Though illness+accident got higher chance..

Although there’s a max of 2 claims in Group 1, major cancers group including relapses of the same cancer, there’s a 5 year waiting period. So if after the first claim of cancer, subsequently one contracted another kind of cancer or suffers a relapse of the same cancer within 5 years, it’s still not claimable.

So in conclusion, the slogan of “can claim for a maximum of 3 times!!” really doesnt appeal to me, after reading all the footnotes.

Like I said before, insurance plans do have their loop holes so sometimes you need to buy a few plans to complement each other economically so that to ensure full coverage. However, another con is, PMC as a term plan in comparison with the market, the premium is considered very expensive(almost 2 times).

And even after I multiplied the coverage by 2(or dividing the premium by half) to ASSUME that YES, Guy A really contracted cancer and suffered a relapse only after 5 years, hence he claimed twice, the premium is still considered more expensive than what’s offering in the market. Despite how I have multiplied the coverage even though it might not be easily claimed with all the conditions thereof.

Many people have the wrong impression that major illness plan can only buy 1 because one can only claim from 1 insurance company or only from 1 policy. That’s a misconception. You can buy as many life plans or major illness plans as you like, depending on your need and how much you like your beneficiary to inherit because they’re all payable as lump sums and NOT on a reimbursement basis. For hospitalization and surgery plans, YES, they’re on a reimbursement basis, meaning you cant claim more than 100% of your bill. But for life and major illness plans, how much you buy, how much we pay.

Lastly, I dont really heart term plans because they got no cash values. Very simple. I’m just someone who prefer to pay monthly housing installments so that I can OWN the house in like 10-20years time INSTEAD of paying rental expenses every month without any holdings to the property in the near or far future.

But because for hospitalization and surgery plans I got no choice, they’re all term. But for life and major illnesses plans, we have a choice. We can get a life plan and hence get all our premiums back with interest.

Great Eastern, my company is coming up with a new plan too in March. I dont have much details about the real thing but I’m real excited about it. Because it works differently from all other products in the market too. Generally, all major illnesses plans only pay out when cancers striked the 3rd stage where cancer cells has spreaded. But this new plan, pays portion at different stages of a cancer.

FOR EXAMPLE:
1st stage of cancer diagnosed, 10% of the sum assured(e.g, $100K) a.k.a, $10K can be claimed FIRST.

When 2nd stage is diagnosed, another 20%, a.k.a, $20K can be claimed again.

When the final stage is diagnosed, then the remaining sum assured a.k.a $70K will be paid off by the insurance company.

As I still dont have the details, I cant elaborate more. But I think it’s pretty clear cut bah. As in 1st stage is 1st stage, 2nd stage is 2nd stage because all these cancer stages are determined by doctors and not GE itself. As for the percentage of the pre-payments, yet to be confirmed.

But it really sounds great. Gonna buy it myself when it’s launched after I check it out. So stay tuned~

Hmm….no offence to any Pru fans and well, if I sound offensive and biased, it’s not intentional because they’re purely based on my personal opinions.

Disclaimer: All information stated are in no reflection to the actual product stated and are purely illustrated as the author’s own personal opinions and in her own perspectives. Author assumes no responsibility for any miscommunication or inaccuracies of info for any losses that might be incurred.

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