Monthly payout $2.4k p.m. How ?

Chat with someone who has bought AIG endowment which pays $2.4k p.m. from age 65 to 84.  

It also protects him with Crisis Coverage of $2.4k p.m. upto age 65.

On his one policy that gives monthly income of $2.4k p.m. and CI protection till age 65, good planning for a 40yo which he recently bought it in 2023.

However, my opinion only:

1. After 1 Jul 2021, the insurer BI illustrated return stated @4.25% par fund performance is not so attractive.

2. AIG payout will likely be reduced for such long 25-year runway to 65yo. 

(My opinion only hoh. I no insurance agent.)

He lol that he can claim nearing age 65 to enjoy another 20-year CI of $2.4k p.m. (touch-wood hoh, told him).

CI = Critical Illness

~~~

I told that he will face dilemma of his CI expired at age 65; just like me.

I shared that my Wholelife CI will or has expired at age 60 & 63. Both, I have terminated as no point paying $3k p.a. my wholelife to cover $250k Death & TPD. ( Long story short, the insurer who does not follow the projected Surrender Values).

CI is said to insure us when we have young dependents or insure our income estate. 

However what about after age 60/63 ? We have to self-insure ourselves as renewal Term CI premium rises with age which is expensive to buy.

For Mindef-Aviva Group Living Care yearly renewal coverage at $100k, its annual premium is ~$1k p.a. & rising and stopped to cover at age 70.

~~~

Afterthought:

1. I wonder if he meant AIA insurance, not AIG. AIG has sold all of its Bancassurance to AIA in Dec 2012. 

Sometimes people blur blur just buy endowments. Oops.

2. And to have a payout of $2.4k p.m. for 20-years from age 65, his total premium might be $250k regular or single premium to accumulate such good payout, bought at age 40yo.

3. My reference was someone who bought Classic Annuity with Single Premium of $100k at age 47, payout $1k p.m. from age 65 to 84; BI at 5.25% upper limit Par Return.

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