Asked by Anonymous
Asked on 19 Apr 2018
$41/month for $1M coverage, good deal right??
From what I understand, because it is a Group term life, there are some limitations. In the event of terrorism/war, Aviva's maximum liability is 0.75% of the Aggregate Sum Insured per policy year. For example, if 10 people are insured for $1M each, the aggregate sum here is $10M. Aviva maximum liability is to pay out 0.75%, in this case, $75,000 to all 10 people. So the payout to your family would be about $7,500. Limitations are quite common for group insurances as the premiums are sometimes cheaper.
Oh ya, the premium increases drastically after age 65, something you should take into consideration when doing your financial planning. I hope this helps!!
I think Cherie's answer is very good when it comes to giving you the technical side of why it's cheaper :)
This is a mass-market (group insurance) product, so there won't be a specific agent to serve you. It is largely DIY (Do-It-Yourself).
So in the event of when shit hits the fan (e.g you get into an accident or potentially get into a CI or worse... Death) Your family members will need to know how to access the policies and go through the claims process.
Which personally I have contacted the helpline and sent in a few emails before (usually they are rather slow and forms need to be filled)
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.
You can read more here: https://blog.seedly.sg/should-you-cancel-your-aviva-mindefmha-group-insurance-after-you-ord/
I'm personally on it as it is very affordable for most young working adults. Even spouses are covered too! Hence, as a whole, this is a very no-frills product! And you trust that AVIVA pays out the right amount and cover you when things go south.