Is the Mindef Aviva group insurance sufficient for an adult, if I decide to continue with it even after completing my NS as the premium is really affordable? What are the pros and cons? - Seedly
Seedly logo
Seedly logo
 

Insurance

Disability Insurance

Critical Illness (CI)

Early Critical Illness (ECI)

Term Life Insurance

Anonymous

Asked on 22 Jul 2020

Is the Mindef Aviva group insurance sufficient for an adult, if I decide to continue with it even after completing my NS as the premium is really affordable? What are the pros and cons?

Hi there, I’m an NSF serving the nation right now. As we all know the SAF/MINDEF provides us with the AVIVa group insurance that covers term life, CI and disability.

0 comments

6 answers

Answer Now

Answers (6)

Sort By

Govind Singh
Govind Singh
Level 3. Wonderkid
Answered on 22 Jul 2020

Hey, I’m no expert, just someone who’s been reading up too.

Mindef aviva plans are really cheap and are affordable till 65. So that’s the pro. By buying all their plans e.g living care, living care plus, life, accident, disability income would have covered all the buckets that are usually recommended, which are (in order) 2. Life 3. Critical illness 4. Accident and disability (no. 1 is hospitalisation and is not within mindef x aviva group plans, please ensure you’re covered there)

However I find there are 2 main cons

  1. after 65, mindefs plans start to rocket in price, so if you want to cover yourself beyond 65, this gets expensive and other options might be better (eg whole life plans, multipay plans)

  2. The plan is owned by mindef so there may be changes. Also in the event of mass claims (eg big group of Singaporeans claiming at one go) there are some more t and cs

So really depends on how you want to cover yourself

I apologise if I’ve made errors. This is actually my first time answering a qn :)

1 comment

👍
6
Duane Cheng
Duane Cheng

22 Jul 2020

You hit it on the nail! Keep on posting!
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post
Jonathan Soh
Jonathan Soh, Wealth Manager at Aviva Financial Advisers
Level 6. Master
Answered on 23 Jul 2020

Hi there. The Mindef Group Insurance is something I deal with all the time. My advice is buy, and stick with it. It is as value for money as it gets.

However, once you start working you definitely need other non-group policies to complement your portfolio, as these group policies are relatively limited in coverage.

You can message me here to find out more.

4 comments

👍
1

2 more comments

Choon Yuan Chan
Choon Yuan Chan

26 Jul 2020

Yes long as have done NS before eligible
Jonathan Soh
Jonathan Soh

27 Jul 2020

Yes Hazel, still eligible for the NS plans until official ROD
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post

Hi there,

As a fellow male Singaporean, this is a question i get very often. The reason why SAF's Group Term Life Insurance (GTL), is put in place for us, is provisioning for the chance event that we get injured severely during our course as an NSF/Regular or death as a result of military activity. GTL can be covered up to age 70, as we still have our ICT cycles up to age 45/55. There is a provision in insurance policies in Singapore, which excludes disability claims arising from military activities, that is where GTL will step in.

As GTL is a company-owned policy, with MINDEF being the policy master, we participate into GTL coverage, but are not entitled to make alterations to the policy conditions, which are subjected to change every renewal cycle. GTL is very good to supplement your main form of coverage from other insurers, as the costs are low as you said.

To Summarize the Pros and Cons

Pros

  • Affordable Coverage for individual

  • Low costs in the initial life stages

  • Coverage can be adjusted

  • Spouse/Children can participate in this policy

Cons

  • Policyowner is MINDEF

  • Policy cannot be used as collateral, or nominated

  • Policy may be altered at any time during your period of cover

  • High assurance costs towards the back end of the policy, after age 55

  • For Death, TPD and TI payouts over 200k, balance amount will be spread over 3 years.

  • Policy will expire at 70

As you enter the workforce, GTL is still essential for male Singaporeans, and should be included in your financial portfolio. It is still advisable to get your own personal policies, where you are the policy owner.

I do hope i was able to answer your queries! Have a great week ahead!​​​

0 comments

👍
1
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post
Tay Ling Yin
Tay Ling Yin
Level 5. Genius
Answered 4w ago

Hi, I would suggest you keep the Mindef Aviva group insurance as it is one of the lowest premium in Singapore for life and accident. However, the coverage is not enough for an individual.

Cons:

Its a group Insurance so policyholder is not you, if governement withdraw, you will not be covered. Futhermore, you are no able to leave behind a sum of money for your family as beneficiaries.

0 comments

👍
0
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post

Hello,

The pros are as follow:

  1. Affordable - It cost in the range of $340 for a 300,000 coverage for CI, Accident and Term life

  2. Spouse can join in - This is at a higher (but still affordable price)

So the pros would allow you to BTIR (Buy term, Invest the rest). Which for my personal protection, I plan to self-insure by 65 (when the policy's price sky-rocket). Hence, this insurance plan suits my needs really well - of course, you can complement your coverage with other policies.

Of course, the cons are:

  1. Subjected to changes - as this is a group insurance.

  2. Increasing cost - especially when you age.

For my personal approach, my insurance coverage will be mainly by this plan, with other policies by other providers for complementary coverage. My rationale is that the conditions of the policies would not change that much as MINDEF would have favorable bargaining power when they decide to change the provider. Hope I helped. :)​​​

0 comments

👍
0
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post

Hi Anon,

It's good to continue with it as it's one of the most affordable term insurance in the market to date. The coverage also extends till you are 70 years old, so that means you have coverage till then.

But it's ideal to add on other coverage as it's a term insurance, what this means is that once the term is over, the coverage is over as well. Also I don't think the policy actually covers Critical Illness and Terminal Illness, so I think if you enhance the coverage of the Mindef Group Insurance by adding that coverage, the premiums will increase quite significantly.

So it might be better advised to get a personal whole life policy in that regard to ensure that we have coverage against Critical Illness and maybe even Early Stage Critical Illness for the whole of life.

0 comments

👍
0
Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post