What are the key considerations to take note of when getting the MHA group insurance (AVIVA)?

Hi anon,

1. As you do not have any say in the terms of the group insurance, you should ensure that you spend only what you can afford after settling your own personal coverage.

2. You can. It's very affordable. That'll be $47/mth till age 65 for $1 million death/TPD cover and $600K personal accident cover

3. Living care premiums increase with age, so while they maybe cheap when you are young, you will pay more when you are older. Coverage also ends at 65 (actually 70, but you will have to pay ridiculous amounts of money for the basic plan in order to keep living care. I don't think anyone would do it). Living care plus is quite lacking as it only covers 10 early CI. Outpatient is likely covered by your company if you are working, and after you retire, you won't keep MHA anyway due to cost.

4. Terms and conditions of the policy are not in your control. I emphasize this a lot, even though nothing much changes usually. But when change happens, it can have a significant impact. Well, recently the living care rider was updated in July to follow 2019 CI definitions. Anyone who has living care will now be on the newer (stricter) conditions. Such people have no recourse, they either have to live with it, or get their own CI policies before end Aug 2020. Banks also don't recognise this as a suitable mortgage insurance. Any payouts more than $200K are also capped at $200K first with the remaining amounts spread equally over 3 years. And premiums might change, or MHA might switch provider, and you will also have no say in it. The worst case is if MHA decides to cancel this scheme, and you are left with no coverage. Very unlikely of course, but it does highlight that no individual should solely rely on a group policy.

Hi there. The Aviva group insurance is a common policy that I deal with. In my opinion it is one of the most value for money insurance products you will find in the market. The premiums are very cheap. I recommend to take as high a coverage for the term/life plan as your budget allows. There are no other similar plans that have as good a deal. However, if you are looking at the other types of group plans like Living Care and personal accident, it might not be as comprehensive in coverage as the other options in the market, so this part really depends if you prioritise price or coverage.

So my overall advice is get them, but balance with the more comprehensive plans in the market as well.

You can reach me here if you like to find out more. I cover the products of 9 companies including Aviva.