What’s the difference between group term life and when we get our own?

Group life insurance is a type of life insurance in which a single contract covers an entire group of people. Typically, the policyowner is an employer or an entity such as a labor organization, and the policy covers the employees or members of the group.

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There are few risks involved:

1. Loss of coverage

By chance the policyowner discontinues the policy and decides not to provide this protection to employees/members, the premiums paid will be worthless and they are not covered anymore under this policy.

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2.Little control

Policyowner may amend the policy term upon policy renewal

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3. Coverage may reduced/limited

Claim may be reduced/limited due to limitation stated in the group policy term

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While for personal term insurance, you are the policy owner & the policy terms are fixed upon approval of policy. If there is any change(s), you will be inform, unlike for group insurance you may not be inform or aware of the new change(s)

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By end of the day, it is recommended to do a planning according to your budget & needs.

A better portfolio is likely to have a combination of both group & personal insurance. This is cost saving while at the same time reducing the above mentioned risks.

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I think this has been answered quote some time ago.

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https://blog.seedly.sg/should-you-cancel-your-a...

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Extract from the write-up:

"here are a few factors which might have resulted in the cheaper premium when compared to some of the policies out in the market.

• The Aviva MINDEF/MHA Group Term Life Insurance does not cover Critical Illness unless you purchase a rider.
• The policy is an initiative by the government to recognise the efforts of National Service. This is why part of the premium is subsidised by the government.
• As mentioned in the first paragraph, this policy has one of the largest pool of people in Singapore, covering all NS men. This is probably why they are able to come out with such a competitive pricing.
• It is ultimately a group insurance, which means in times of a mass disaster one may face difficulty claiming it."

So personal insurance is good in the sense

1) the coverage should technically be less difficult to claim,

2) owned by you, so any decision to change is yours (and not subjected to the main policyholder, in this case, Mindef/MHA