Advertisement
Discussion (2)
Learn how to style your text
Albert Tan
Edited 03 Oct 2021
Financial Literacy & Solutions at MoneyOwl
Reply
Save
Hello there,
I strongly believe in the Aviva Mindef/Home team policy. It is cheap because ah gong stroked a deal and subsidised the premiums for NSmen/Regulars who gave their time to serve the nation. The catch is, after 65, it becomes expensive and not worth to keep. Also, I heard the claiming process abit mahfan, but you'll still get your payout.
300k- Death, TPD, PA
250k- CI, eCI
Only 30/month.
Where can you find a better rate? Yes the CI & eCI is not as comprehensive as other insurers, so I'd recommend another Term Policy with either AVIVA or the other insurers. But if you really heng, tio the CI/eCI that Aviva Mindef covers, you huat. So I'm looking at the opportunity of getting more money by paying less. I have a Aviva Mindef as well as a Term Policy for more comprehensive coverage (which isn't cheap). But mainly I'd say, the Death coverage is the most important one. I'm sure you've seen other insurers, no one can match aviva mindef's price.
Not 100% sure about this, but if you're securing a loan, you can check with them if having a higher Death policy would help as a "guarantee" that you'll still be able to pay even if you have passed on due to unforeseen circumstances. 1mil Death is only $40+/month.
Just my 2cents worth. You do you.
Reply
Save
Write your thoughts
Related Articles
Related Posts
Related Posts
Advertisement
Hi Ned,
Congratulations on discovering the cheapest group term insurance policy in Singapore! :D $1m at $41/month
Some of the limitations include: 1. Unable to make nominations, 2. Instament payouts for claims above $200k, 3. Coverage definitions (CI), 4. Group risk.
Let me explain a little further.
1.Unable to make nominations
Because you are not the owner of this policy (MINDEF/MHA owns it) you do not have control over the policy like you would over a personal term life policy that you bought direct from an insurer.
You cannot make nominations of beneficiaries for the group term life policy and payouts will be made to your estate (subsequently depending on whether you have a will written, or Intestate Succession Act)
I don't suppose many young men serving NS or just starting working have their wills written. I shan't elaborate on the challenges of admininstration process here but it's troublesome and much slower than a nominated insurance policy payout to say the least.
2. Instalment payouts
From the product summary pg 5 under Important Notes https://www.aviva.com.sg/content/dam/asl-public...
Your family will not be getting the $1m cheque you thought they would upon your death.
3. Coverage definitions may change (CI)
As in the case of the recent update to Critical Illness definitions, group policies like this have updated their CI coverage as well. You may have been holding on to a CI policy with 2014 definitions, and that would remain unchanged if it was your personal policy. Whether this is a good or bad thing, it's up to the policyholder to decide.
4. Group Risk
In the unlikely event of war/terrorism attacks. When many people claim together, there's a clause (on pg 3 of product summary) that limits the maximum liability of the insurer to 0.75% of aggregate sum assured.
Just some numbers for illustration. Say the aggregate sum assured of this group policy is $10 billion (it's definitely much higher), assuming there are 10,000 members who bought $1m coverage. If those 2 events occur and all 10,000 members claimed together, insurer will only pay out $75 million to the 10,000 members.
Others
It may interest you that qualified dependants of NSMen and a whole list of people who are not NSMen are also eligible for this group term policy. There is an equivalent for public officers - Public Officers Group Insurance Scheme (POGIS) which is currently underwritten by Aviva as well. $500k at $21.50.
It is definitely cheap for those under 65, but you realise the huge spike in premiums after 65 should you decide to hold on to the policy.
You may catch my webinar on Group Insurance Policies here https://www.youtube.com/watch?v=oZvGpePXvHE :)