Should I keep Aviva MINDEF Group Insurance? Is it enough?

I keep the term life and PA as these benefits can be passed to your family if anything happens. Living care should be quite restrictive scope so it might not be useful, but the premium is cheap.

Hi anon,

SAF Group Term policies are decently priced but there are limitations of course, as they are group policies and not individual policies.

This article highlights some of the reasons for taking a personal plan instead of a group plan:

https://seedly.sg/opinions/8-reasons-why-i-swit...

That's not to say that GTL is bad, it is attractively priced, but you need to be aware of the limitations.

On top of that, GLC premiums are age-banded, coverage is not for life, and the T&Cs can and will change upon renewal. For example, when CI definitions migrated to the 2019 definitions, all SAF group term living care policies followed the new 2019 definitions. If you had an older personal policy following 2014 CI definitions, then you would not be 'forced' to migrate to the new definiton.

GLCP's scope of coverage is relatively narrow as well, covering only 10 early CIs, and there are no other frills such as coverage for special conditions, etc. GLCP also suffers from the same issue of having premiums age banded, and doesn't cover you for life. Individual policies cover well over 120+ stages of CI across more than 50 different illnesses and will be more comprehensive.

Having said that, at age of 25, the premiums are low at this point, and thus you still have some time to figure out what would best suit you.

To answer your questions:

1. GTL and GPA can be kept. I keep mine as well. GLC and GLCP might lose out to current generation of individual CI/ECI plans (whether term, multipay or whole life). The market is constantly evolving. Personally, I prefer to use WL with multiplier to cover CI/ECI so that I will have decent coverage while working, and some basic coverage in retirement.

2. Without knowing your obligations/liabilities, etc it is hard to say 'yes' definitively, but it does look quite sufficient. But I caution against looking just at the numbers, consider the scope of coverage as well.

3. This depends on whether your job is very specialized, or very generic. Disability income's grey area is that you must be "unable to perform the material duties of your job" to get a payout; so a surgeon losing a finger might not be able to perform operations any more, but a clerk losing a finger can still manage to perform clerical functions.

4. You might want to look at the numbers for WL CI/ECI coverage first before you decide; at this point in time, age 25, your premiums would be still very low, relatively speaking. Do remember that premiums are higher on a yearly basis because they are paid typically for 25 years but cover you for life; as opposed to the group term plan where you still have to pay for 40 years to age 65 if no claims are made; the total premium in this case could easily be on par or more than a whole life plan. Consult a financial advisor to look at options for whole life, let the numbers guide your decision.