This post was written in collaboration with Aviva. While we are financially compensated by them, we nonetheless strive to maintain our editorial integrity and review products with the same objective lens. We are committed to providing the best recommendations and advice in order for you to make personal financial decisions with confidence. You can view our Editorial Guidelines here.
If you’ve been through National Service, volunteer regularly with an organisation or are already out in the corporate world, you probably have been automatically covered by group insurance.
At the very basic, there could be a payout in the event of death or total permanent disability (TPD), if the insured person has an accident, or incurred other medical expenses. The coverage really depends on the plan your employer or organisation has arranged with the insurer.
But there’s another type of group insurance — in which some organisations or companies allow you to top-up your coverage.
In insurer Aviva’s case, this is termed as a voluntary scheme — and it allows you to choose the level of protection you need (especially if you need better protection as compared to the basic coverage), and even if you want to insure your dependants as well. Your employer won’t be paying for this policy, but you’re able to enjoy the group insurance price (usually lower premiums).
These voluntary group insurance plans are a good value-for-money option, especially if it’s your first insurance policy. Group insurance plans also serve as a good stepping stone to building your robust protection portfolio.
Let’s look at group insurance plans (voluntary scheme) in more detail:
Benefits of group insurance plans (voluntary scheme)
Remember that time you bought a carton of your favourite snack so you could get a bulk discount? Group insurance kinda works like that: When a group of people buy insurance, the insurer’s risk is spread across this group of policyholders.
Hence, the individual’s premium paid tends to be lower when they buy a group insurance plan.
And just like how you can share that carton of your favourite snack with your neighbours (groupbuy, anyone?), you’re also able to share the “lobang” of getting the lower premiums of group insurance with your dependants, such as your spouse and children.
How’s that for value for money?
What is group insurance (top-up coverage)?
Many insurers who offer group insurance plans for businesses to protect their employees also offer enhancements to the core coverage to staff who wish to expand their protection. Staff pay with their own money or use company benefits such as flex dollars for this top-up coverage.
Did you know that even if your employer doesn’t have this option, many Singaporeans are still eligible for Aviva’s group term life and group personal accident voluntary scheme plans for MINDEF (Ministry of Defence) and MHA (Ministry of Home Affairs) personnel? This covers their dependants as well!
Here’s a closer look at Aviva’s MINDEF and MHA Group Insurance Plans (Voluntary Scheme), for both MINDEF and MHA personnel and their dependants:
|Plan||Key benefits||Sum assured||Premium rates|
|Aviva Group Term Life (MINDEF and MHA)||Up to $1M||From $4.10 per month ($100k coverage)|
|Aviva Group Personal Accident (MINDEF and MHA)||Up to $600k||From $1 per month ($100k coverage)|
|For both Aviva Group Insurance Plans (MINDEF and MHA)||–||–|
*Only up to $250,000 sum assured. Terms and conditions apply
As my husband is still doing his reservist and is an Operationally Ready National Serviceman (NSMen), as his spouse, I’m eligible for Aviva’s MINDEF and MHA group insurance plans (voluntary scheme).
Even those who are doing NS can still sign up for the voluntary scheme on top of the automatic coverage. It’s really an affordable and value-for-money policy to have (you’ll still be able to afford it on your NS allowance), especially if it’s your first insurance plan (perfect for young or first-jobber with little disposable income as premiums are lower than most individual insurance plans).
A stepping stone to building robust protection
In short, Aviva’s group insurance plans (voluntary scheme) offer good value for money and are a strong foundation to building up one’s robust protection.
Group Term Life & Group Personal Accident
As highlighted above, there’s coverage for term life at a flat premium rate from $4.10/month until age 65 (renewable after that, but premiums increase annually) for up to $1 million; and for personal accident, it’s a flat premium rate from $1/month up to age 70 for up to $600,000.
Group Living Care & Group Living Care Plus
Aviva’s Group Living Care rider offers secure protection against 37 common critical illnesses, whereas Aviva’s Group Living Care Plus rider provides additional coverage for 10 early critical illnesses. These riders do not reduce the coverage amount of the Group Term Life, Group Personal Accident and/or related riders.
Protecting the people who matter
Those eligible for the policy can extend the coverage (and the value-for-money premium prices) to their spouse, as well as children (up to age 25). As long as the spouse continues with the plans, should anything happen to the main policyholder, the policies will continue to run, providing peace of mind.
It’s easy to get covered by Aviva’s MINDEF and MHA Group Insurance Plans (Voluntary Scheme) — just fill up your details online, choose your plan and coverage amount, make payment and you’re good to go.
For a limited time only, sign up for Aviva’s MINDEF and MHA voluntary scheme insurance plans to enjoy these promotions:
Find out more and sign up for Aviva’s MINDEF and MHA voluntary scheme insurance plans to enhance you and your family’s protection: Group Term Life and Group Personal Accident.
Terms and conditions apply. These policies are underwritten by Aviva Ltd. This material is published for general information only and does not have regard to the specific investment objectives, financial situation and particular needs of any specific person. You should read the Product Summary and seek advice from a financial adviser representative before making a commitment to purchase the product. As these products have no savings or investment feature, there are no cash value if the policies end or if the policies are terminated prematurely. The benefits of a personal accident policy will only be payable upon an accident occurring. Before replacing an existing personal accident policy with a new one, you should consider whether the switch is detrimental as there may be potential disadvantages with switching. A penalty may be imposed for early termination and the new policy may cost more or have fewer benefits at the same costs.If you decide that the policy is not suitable after purchasing the policy, you may terminate the policy in accordance with the free-look provision, if any, and Aviva may recover from you any expense incurred by us in underwriting the policy.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
Protected up to specified limits by SDIC.
Information is accurate as at 11 Aug 2021.
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The post Group Insurance Plans: Why These Could Be A Good Value-for-Money First Insurance Policy & Are You Eligible? appeared first on MoneySmart.sg.
Original article: Group Insurance Plans: Why These Could Be A Good Value-for-Money First Insurance Policy & Are You Eligible?.
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