FWD Recover First Review

FWD Recover First is a critical illness plan that offers protection against illnesses, impairment, injuries, and disabilities.

As well, it’s a standalone and a non-participating policy with regular premium payments that provides coverage against late-stage critical illnesses.

In addition, it offers Future Protect Benefits whereby you get the sum assured if there’s an event that affects your health. Also, the Special Benefit coverage pays a lump sum amount if death occurs.

Here is a comprehensive review of the FWD Recover First policy including, fees, benefits, and our recommendation.

Criteria

• Minimum sum assured: S$50,000
• Maximum sum assured: S$350,000
• Premium payments: Monthly, quarterly, semi-annual, or annually

 

Product Features 

Policy Terms

	Person Insured	Policy Owner
Minimum Age Entry	30 days	18 years
Maximum Age Entry	65 years	100 years

 

Policy Tenure

Premium payment duration (ALB)	Minimum policy term	Maximum policy term
Throughout the term of the policy	5 years	Entry Age – 85 years

Protection

Recover First Benefit

Recover First Benefit is also known as the base benefit. It covers up to 37 late-stage critical illnesses and pays close to 100% of the basic sum assured. Notably, this is paid in one single lump sum.

Another feature of this benefit is that you’ll be paid 10% of the basic sum assured subject to the S$25,000 maximum sum payable in the event of angioplasty or invasive treatment for the coronary artery.

Critical illnesses covered under Recover First Benefit

Here is a list of Critical Illnesses covered under Recover First Benefit.

Future Protect Benefit

The Future Project Benefit is the most recent feature that covers more illnesses. With this feature, you’ll get coverage even for illnesses that are yet to be discovered.

Therefore, it’s future proof for uncertainties that may occur at a later date.

For example, if an insured person slides into a coma then suffers a stroke probably due to an underlying or unknown illness, the policy covers the undiscovered illness.

After a diagnosis of the covered illnesses under the Future Protect Benefit, you’ll be paid 100% of the basic sum assured as one single lump sum. However, this amount is less than other claims paid under Angioplasty or invasive treatment for coronary artery.

The Future Protect benefit ends after you get paid, and the base benefit reduces to zero. Nonetheless, the policy doesn’t end, but you’ll get a waiver on the residual premiums.

Conditions covered under Future Protect Benefit

Here are critical illnesses covered under Future Protect Benefit.

Reset Benefit

As earlier mentioned if you make a claim under Future Protect Benefit, the base benefit doesn’t end immediately but stays in force up to the end of the policy.

It reduces to zero for 12 months after you’ve been diagnosed under the Future Benefit claim. Subsequently, you’ll be fully insured for the late-stage critical illnesses covered again.

It’s worth noting;

• The amount excludes claims paid for angioplasty and other invasive coronary artery treatment
• The base benefit cannot be reset more than once.

 

Special Benefit

If you are diagnosed with any of the 10 critical illnesses covered, you can be paid an extra S$25,000 under the special benefit. Important to note, your sum assured or the death benefit remains the same.

To clear any doubt;

The special benefit does not trigger a waiver of premiums.

• • You can only make a claim for each condition.
  • Only six claims are allowed under the special benefit to a maximum of S$25,000 per life per condition.
  • The benefit terminates if you previously made a claim under Future Protect Benefit.

 

Here are the 10 Special Benefits illnesses:

Death Benefit

In the event of death, the Death Benefit is paid to a tune of S$5,000 as a single payment. Subsequently, the policy ends.

Other Features

Waiver of Premiums

After a successful claim, the Future Protect Benefit ends, and subsequently, the remaining premiums are waived.

The waiver takes effect from the next premium date after you make a claim under Future Protect Benefit.

Emotional Support

The FWD Recover First has some of the unique features on the market today. For instance, Emotional Support is available after recovery from a critical illness.

In this respect, you will be paid for up to 10 life coaching and counselling sessions if previously you had a claim under Future Protect Benefit, Recover First Benefit, or Death Benefit.

Only the policy owner can receive this benefit for emotional support or a nominee who receives the death benefit.

Medical Second Opinion Support

You can qualify for the medical second opinion support benefit after a diagnosis of any critical illness under Future Protect Benefit or the Recover First Benefit.

In this context, the beneficiary is the insured person who has been diagnosed with a CI.

As well, it’s important to note that you’ll only receive the benefit after presenting proof of illness or diagnosis.

Here are examples to illustrate how FWD Recover First Policy works:

Example one

Assuming John, who is 30 years old, purchases an FWD Recover First Policy of 35 years and basic sum insured S$150,000. The annual premium is approximately S$1,372.50.

Supposing John is diagnosed with any covered critical illness that requires admission in ICU for five days. But, luckily, he recovers from the CI. Unfortunately, many years later contract late-stage lung cancer.

Here is what happens.

• The policy pays John S$150,000 for the ICU admission for the 5 days.
• If there is no claim under base or death benefit within the next 12 months, the sum insured is reset or restored to the initial amount. Remember that this can only be done once.
• Therefore, the coverage continues for 37 late-stage critical conditions even after recovery, and the premiums are waived. This means that after diagnosis with lung cancer, John will be paid another $150,000 should he face any other CIs.
• Consequently, the policy terminates.

 

Therefore, the total amount payable to John under this policy is S$300,000.

John can also receive up to S$10,000 worth of Recovery or Emotional Support benefits if he had previously joined the recovery support program.

Example two

Supposing Sam, who is 30 years old, purchases an FWD Recover First policy with a 35-year policy term and basic sum assured of S$150,000. In this circumstance, the annual premium is S$1,580.

Sam faces a couple of illnesses during the policy duration, including diabetics and high blood sugar complications. Consequently, he falls into a coma for 2 days and suffers a major stroke. The cause of the stroke is not immediately established but there is a possibility of an unknown illness.

Here is how Sam can get various claims under the FWD Recover First under the circumstances.

• He will be paid a Special Benefits claim of up to S$25,000 for every illness.
• The policy doesn’t end there, but the coverage continues for 37 late-stage critical illnesses. There is also the Reset Benefit which leads to a waiver of the premiums. Notably, there is a 12 months period before the reset.
• After that, Sam will be paid Future Protect of up to $150,000 for the coma.
• Because Sam eventually suffers a stroke, he will be paid a sum of S$150,000 for the late-stage critical illness even if the illness is unknown.
• Afterwards, the policy ends.

 

Therefore the total amount payable to Sam is S$325,000.

Like the first scenario, Sam can also receive up to S$10,000 worth of benefits for recovery or emotional support if he had previously joined the recovery support program.

Key Points

FWD’s Recovery First plan provides recovery support to you and your family should an unfortunate event happen. Here are the key points of this plan;

• Future-proof by providing coverage against yet to be discovered illnesses.
• Even though it’s not the cheapest option, it’s the best value for money because you pay premiums for illnesses that may affect your quality of life.
• The policy is easy to understand to include the benefits and illnesses covered.
• There is a waiver of premium after the payment of Future Protect Benefit. In addition, the policy is reset back to the original amount, which allows for multiple payouts for late-stage CI and death benefits.
• The Special Benefits allows coverage of extra 10 conditions.
• Recovery support is another incredible feature of this plan that allows for a second medical opinion and emotional support as you recover.

 

My Take on FWD’s Recover First 

The FWD Recover First is ideal if you are looking for a CI plan that is not complicated but offers basic coverage.

The main advantage of this policy is that it covers you for illnesses that are not yet discovered or unknown illnesses. It also resets the sum assured after the payment of the first claim.

Think of it as a multipay plan for late-stage CIs instead of early and intermediate stage CIs.

Overall, the FWD Recover First is attractive due to its features and multiple benefits.

However, for the premiums it charges, I personally prefer other plans.

These are the premiums for other multipay plans that cover early, intermediate, and advanced stage critical illnesses:

Premiums shown are based on a 30-year-old male, non-smoker, 100K sum assured with policy term up to age 75.

And the FWD Recover First’s premium for the same demographic is $1,124.

Given the coverage and price differences, I’d go with either the AXA Super Criticare, Aviva MyMultiPay Critical Illness Plan IV, Manulife ReadyComplete Care (Cover Me Again), or Tokio Marine MultiCare – depending on the coverage I need.

But that’s just my opinion.

Perhaps our guide to the best critical illness plans in Singapore or talking to an unbiased financial advisor would be better.

References

Product Brochure

source https://singaporefinancialplanners.com/blog/fwd-recover-first-review/