Aviva Term insurance - So cheap!

Jes , 19 Comments

I was actually thinking to change to Aviva for very long due to their really cheap prices. I know I am not a guy or NS men, but lucky for everyone, it's also applicable to spouse and children up to 25 years old. It is really affordable. You can check out the details here.

For more details, read this pdf
I confirm there is nothing cheaper in the market.

Plus, you can buy at any age below 65, it will not get more expensive whether you buy at 25 years old or 60 years old. Male of female, it's the same. I am truly impressed. It's really a wonderful offer so if you are buying anything else, you should consider this seriously.

Let me tell you why I bought Prudential in the first place, my best friend is an insurance agent.

Wah, so funny right? I know I am taking different stands from her but she doesn't mind. I just do not know how to tell her if I want to change to Aviva. So luckily for Prudential and my friend, this happened:

The amount stated here is pro-rated and does not corresponds to $813
Kudos to Prudential for trying to be competitive and give such drastic discounts to everyone. From my premiums of $813, it has come down to $430. Aviva will cost me ($41 *12) = $492. However, this is not an apple-to-apple comparison. My PruTerm is only for 25 years while Aviva is till 65 years old, which can be up to 35 years. I changed from PruLink to PruTerm due to these reasons.

So, my plan is to stick with Pruterm until it ends. Then switch to Aviva if I still need insurance by then. Perfect right?

If you are still buying ILP, read this and hope you understand better on what you are buying. Follow me on Facebook if you wish to keep updated on more personal finance matters.

Jes

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19 comments:

  1. Small benefits for serving the Nation. Large number helps to reduce the cost for individual servicemen and their family

    ReplyDelete
    Replies
    1. Hi Uncle CW,

      Yeah it's a small benefit but strangely, not everyone make use of this benefit! Such a good deal man :)

      Delete
  2. Hi,
    There is a different between Aviva Group Term Life and PruTerm Vantage.
    If one day Mindef or MHA decided to terminate the main (group) policy, your policy will also be terminated. I hope you are aware of this. The Aviva Group Term Life works in a similar way to your usual Employer Group Term Life.

    Regards,

    ReplyDelete
    Replies
    1. Company group insurance is No no as it is NON portable!

      NS should be around until the next smarter Govt elected to believe that there is no need for self defence anymore then this small NS benefit will be gone.

      Delete
    2. Hi there,

      As CW aptly puts it, I don't expect Aviva Group Term to be terminated anytime soon. A company group policy is not a very good comparison because one can change company while NS is definitely here to stay. I don't think a company policy can also cover the family members too.

      Delete
    3. Recently (2016) both Mindef & MHA combined their group insurance under 1 master policy with Aviva, for better economies of scale. Previously SCDF/SPF was under AIA, but AIA lost out on the joint-tender.

      This group term will be for certain number of years (3 or 5?) before govt calls for tender again. Even if change insurer, the coverage will continue transparently and usually the terms & conditions will remain the same. They will inform you of the new master policy etc. Long time ago, the insurer for Mindef group term was with NTUC Income.

      The main thing to note with such group policies is that they have limitations on large scale claims arising from acts of war or terrorism. For current Aviva group term, it is 0.75% of Aggregate Sum Insured. E.g. if 50 people with $1M insurance under this Aviva Group Term kena blown to bits by a terrorist bomb, then each person can only claim 0.75% X total $50M aggregate sum = $375,000.

      At least this time around, the Group Risk Limitation does not apply to conveyance mishaps not related to war or terrorism. E.g. airplane crash not due to war or terrorism. Previously before the new Master Policy in 2016, group limitation also applied to conveyance mishaps.

      Delete
    4. Hi there,

      Appreciate the sharing of this information, it is very useful. I did not know about the aggregate sums on large scale but of course, hope it will not happen. Anyway, thank you so much for dropping by :)

      Delete
  3. Jes,

    This is shiny example of focusing on the important stuffs and not sweating over the small stuffs.

    Imagine if Prudential had not offered you the discount, you would have paid an extra $300 per year for nothing.

    $300 can buy a lot of beers and atas coffee.


    Get the big important stuffs right, we can indulge in our little daily pleasures without any guilt :)

    ReplyDelete
    Replies
    1. Hi SMOL,

      Hahaha, I need to upgrade you and call you Uncle Jared. So nice to be nagged at, appreciate the reminders! =P

      You are right as usual but relationships are the big stuff! I was thinking $300 for a friendship still not bad la, lucky don't have to change anything. I am those sales person who don't drink beer and others drink around me, so as per your advice I will keep the $300 and invest! :)

      Delete
  4. Soon, he will be upgraded higher when more youths are giving up their seat for Uncle Jared.

    ReplyDelete
    Replies
    1. Haha, become Grandpa Jared? I am sure he looks younger than his age, thanks to the nice shiny head! Oops =P

      Delete
  5. "The main thing to note with such group policies is that they have limitations on large scale claims arising from acts of war or terrorism. For current Aviva group term, it is 0.75% of Aggregate Sum Insured. E.g. if 50 people with $1M insurance under this Aviva Group Term kena blown to bits by a terrorist bomb, then each person can only claim 0.75% X total $50M aggregate sum = $375,000."

    looking at the above comments, it does not seem like its worth it , does it?
    i mean, if you pay for a 1mil term, but only get 375k, then whats the point?

    ReplyDelete
    Replies
    1. Hi FC,

      Look at it this way, how probable is it to get in acts of war or terrorism? Insurance is looking at the probability of the unfortunate circumstances. In any case, I agree with you, it does not seem worth while to pay for 1 million and in those times of critical need, you get lesser than promised. I can't find any of those clauses in the FAQ though. Hmmm...

      Delete
    2. Insurance are just commercial companies. When there were too much claims under extreme they will go bankrupt.

      Delete
  6. "So, my plan is to stick with Pruterm until it ends. Then switch to Aviva if I still need insurance by then. Perfect right?"

    I would certainly advise against that, considering 25 years is a short period for coverage. If your health condition has deteriorated after 25 years, you won't be eligible for any insurance when you need it the most. Unless you have hit 65 or a age when you don't have liabilities to cover, $62 a year is a small price to pay for full coverage.


    (25 years term has a lower price because their claim rates are lower, by insuring people who are likely to need it less)

    ReplyDelete
    Replies
    1. Hi Simple Investor,

      Thank you for the caution. I have thought through it based on your suggestion and you are right. However, my aim is to be financially free or without liabilities in 25 years' time, which is why I hope not to rely on term insurance when Pruterm expires. You have touched on a very good point that my health may deteriorate and the coverage will not include those pre-existing illnesses. I will seriously consider it before the renewal next year! :)

      Delete
  7. I dont think one can buy without being family of a nsman. And if you are past 40 which you are no longer a nsman.. you also cannot buy unless you bought it before you are 40.

    ReplyDelete
  8. The comment on 40 years old as the age limit for first application is correct. Have personally verified with Aviva.

    ReplyDelete
    Replies
    1. Hi there,

      Thanks for checking up with Aviva personally. I also called them and find out that you are right, the NS man must be below 40 years old to buy this term insurance. So it is important for men below 40 years old to buy first.

      For the wife of the NS man, there is no age limit. The wife can be above 40 years old to add on to the term insurance as long as the NS man is still paying for the insurance. Appreciate the clarification and sorry for the confusion!

      Delete