The AIA Power Critical Cover offers you possibly the highest number of conditions right now with 175 conditions.
**Right now till 15Dec2019, you get a 30% off first year premiums!**
4/5 experience a lifetime of chronic health condition even after a CI recovery.
You get coverage for 150 multi-stage CI conditions (42 early CI + 35 Intermediate CI + 73 major CI), 10 conditions under the Pre-Early Benefit and 15 special conditions.
There are 2 designs of the plan.
First is the Power Critical Cover Value plan which is a term plan till age75. No cash value.
On the other hand, Life plan is a coverage till age 100 and has a surrender value of 75% of sum assured and more from age75 onwards. Plan matures at age 100 where you get 100% of your sum assured in one lump sum (after deducting any amount paid under Critical Illness Benefit).
Note: maturity of 100% is on sum assured and not on premium made.
Based on AIA's previous 'Triple Critical Cover', majority of customers preferred the Life plan.
Since April 1, 2019, new IP riders sold have already included a minimum 5 per cent co-payment. However, if you bought IP riders between March, 8 2018 to April 1, 2019, you’ll have to transition.
Hence, more discussion will be made in this post regarding this plan structure.
The AIA Power Critical Cover (PWCC) plan has a 'Power Reset Benefit' which fully restores your coverage amount for a different condition, once 12 months have passed from the last claim.
- AIA’s IP offers the longest pre- and post- hospitalisation waiting period. You can also enjoy 13 months worth of pre and post hospitalisation for panelled specialists. AIA also covers the most coverage for outpatient treatment, covering parenteral nutrition (intravenous feeding, is a method of getting nutrition into your body through your.
- AIA HealthShield Gold Max is a Medisave-approved medical expense reimbursement plan which gives you more benefits and the choice to stay in private hospitals or A/B1 Class Wards in public hospitals.
The power reset benefit is triggered with claim for any early, intermediate or major CI condition.
If you are looking to cover for early CI mainly, this plan is highly effective.
For example, an example would be early stage Kidney failure which is 'Surgical Removal of One Kidney' and early stage cancer. They are both in the same group/pot under AVIVA My Multipay and TM Multicare CI which means claim once only.
AIA PWCC allows you to claim for both the conditions instead. (subjected to 12 months power reset).
You may claim for a total of 5 different early CI conditions if that is your concern.
#Note: Claim cap of $250,000 per early CI claim.
AIA Power Critical Cover offers you claims for a relapse condition with a 2year waiting period. With 5 conditions covered, this is the highest in market now.
An example will be major cancer. If you can still claim again for the same cancer condition after the 2year waiting period.
According to AIA's study, many cancer patients feel the need to get insured again after being diagnosed. And there is always risk of relapse. Hence, this 'power relapse' is important.
This is a market first with 10 conditions under the Pre-Early Benefit.
Two chronic disease conditions whose benefits are 10% of sum assured or capped at $10,000.
Firstly, type 2 diabetes mellitus.
The Diagnosis must be supported by all of following criteria:
1) Plasma glucose (two hours after a 75 g Oral Glucose Tolerance Test) is at least 200 mg/dL. (11.1 mmol per L)
2) Glycated hemoglobin (HbA1C) is more than 6.5%.
3) The Insured must have documented proof or record from a Physician to evidence medicine treatment at least for six (6) months due to Diabetes Mellitus.
The following are excluded:
A) Diabetes due to pregnancy, alcohol and drug abuse is excluded
B) Type 1 Diabetes Mellitus
FUN FACT: According to the AIA Power Critical Cover 2019 study, the cost of living with diabetes will increase to at least S$6,000 in additional expenses per person this year. Hence, having a payout here is useful.
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Secondly, Thyroid dysfunction which is fairly common.
The Diagnosis must be confirmed by Physician with thyroid function test and medical or surgical treatment is required to prevent complications.
Thyroid dysfunction due to pregnancy, alcohol and drug abuse is excluded.
The cardiovascular disease conditions, benign and borderline malignant tumour conditions are 10% of sum assured or capped at $25,000.
If you look at the list above, what about benign and borderline malignant tumour in the BRAIN?
It is already a major CI condition.
This sharing to give an overview of premiums and understanding benefits.
The first year premium has AIA vitality discounts (without factoring launch discount) and premium for the AIA Power Critical Cover Life Plan is $2,727.90/y. Do note that PWCC Life plan is a unique CI standalone plan that has surrender value.
NOTE: Any claims paid under Critical Illness Benefit will reduce the amount of surrender benefit/maturity benefit.
On the other hand, the PWCC value plan (till age75), premium is $1,985.40/y.
If no vitality discounts are factored in, premiums will be $3,031 and $2,206 respectively.
Now as mentioned, there is a surrender value.
If for example you wish to surrender at age75, there will be a $75,000 fully guaranteed.
Total premiums made is $124,271 and after receiving the guaranteed surrender benefit of $75,000, your net outlay is only $49,271!
With Vitality discounts and first year discounts, the total premium may be lower than that.
Why I believe you benefit from taking the Life plan over the Value plan?
By choosing Life plan over value plan, you pay an extra $825/y. However, the Life plan gives a guaranteed surrender value for $75,000 which the Value plan doesn't.
Hence, if you do an IRR computation, the $825/y extra grows at 3.61%p.a (guaranteed) to become $75,000 in 41years. This is a decent return.
If there is a claim, claims paid will reduce the surrender value. However, that also means you really should consider the option of keeping the policy and remaining insured past age75.
Computation below though rather tiny as it's for explanation.
NOTE: Computation is for Age next birthday 35. Please refer to a qualified financial planner and do a needs assessment.
Qualifiable ages start from 2weeks (infant) till age of 65.
To download the product summary, click here.
If you would like to find out more, email to Josh.tan@promiseland.com.sg or WhatsApp below.
Last updated on November 28th, 2019 at 07:45 am
If you’re an experienced advisor to commercial construction companies, you probably can skip this guide. If you’re looking to expand your practice into the commercial construction area, and would like to learn about the industry-standard process for commercial construction invoicing, then this article is for you.
The AIA (American Institute of Architects) Application for Payment process involves two forms that always are presented together: a coversheet (G702) and a detailed “continuation” sheet (G703).
Even though the form set was developed by the American Institute of Architects, it's rare for general contractors (GCs) and extremely rare for sub contractors to have to purchase (at $40-plus each time) official sheets from the AIA; rather, so long as the application for payment you submit matches the table styles of the official documents, the owner or GC is likely to accept it.
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The coversheet (G702) is fairly straightforward. In fact, you’ll notice that many paper or excel-based versions of the AIA form reference the columns on the continuation sheet that you’ll need to sum up to arrive at the correct values on the coversheet.
More interesting are the two boxes on the right, one for the contractor’s attestation, plus notary signature and the other for the architects certification. If you’re working with commercial GCs billing owners/property developers, both of these boxes are likely to be required. That means you’ll need to get the application for payment (“pay-app”) notarized, and then send it to the architect for review and sign-off. If you’re working for subcontractors
However, the architect’s certification almost is never required, and the notary signature can often be optional as well. Make sure you ask your GC what they want to see on your payapp; you might be able to save yourself some hassle.
The continuation sheet (G703) is a bit more complicated, and has some common pitfalls that you’ll want to make sure you avoid.
Remember: The whole point of the AIA billing process is to make it crystal clear to the owner or GC what work you’ve completed to date, both in this period and in prior periods. They should be able to send out their superintendent to check against your declared completion. In fact, this often happens, so don’t overstate your progress. With that said, here are some tips for filling out the continuation sheet correctly:
Tip No. 1
Stored Materials (column F) should not be used to distinguish between Labor and Materials. If you need to break out Materials, create a separate line for them in the schedule of values. Stored Materials only is used when you want a GC or owner to pay you for materials you’ve purchased and stored ON-SITE. After those materials are installed, you decrease the stored materials value by the amount of material installed and increase work completed. At the end of a job, your Stored Materials columns should only have 0s.
Tip No. 2
Column D (Work Completed in Previous Periods) in the current period should always equal column D + column E (Work Completed in This Period) from the last pay app you submitted. Stored Materials (column F) MUST pass through Work Completed This Period before moving to Prior Period (i.e., never go straight from F to D).
Tip No. 3
Aia Payment App
Only include approved change orders, and always mark change orders clearly. It is almost always a good idea to separate change orders into their own table, as that makes the payapp clearer to the owner/GC and can speed up reconciliation. Also, especially when working with large counterparties (whether developers or GCs) be careful. Your change orders on your AIA payapp must match their records. If you submit two or three change orders and they consolidate them into one grand change order with a specific reference number, bill them with their single reference number – not with the two or three you originally submitted. This can create a reconciliation nightmare. Yes, if you’re using a software package like Knowify the reconciliation can be automated and save everyone a lot of time.
Lastly, a note about retention. A very common gripe among commercial contractors is how long it takes for them to get paid their retention at the end of a job. As their advisor, you might consider recommending your client request a retention reduction from the customary 10 percent to 5 percent at 80 percent or 85 percent overall completion. This ensures that half the retainage will be released promptly (along with the progress payment), giving you greater visibility and control over your cash flows.
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Dan de Roulet Knowify
Aia Payments
Dan de Roulet is co-founder and partner program manager for Knowify LLC. de Roulet, who has a long history as an entrepreneur and business developer, strongly believes in the potential of the Knowify software to significantly streamline construction company operations.