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Aviva SAF Group Term Life Insurance PDF Print E-mail
Written by Wilfred Ling   
Thursday, 05 May 2011

The Aviva SAF Group insurance is a very popular policy used by those who has done their national service. To me, it should not be used as part of the core-insurance of one's needs. It should be viewed as similar to company's employment benefits which is not guaranteed renewable. Below is the fine print printed on the certificate:

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Anonymous   |220.255.2.113 |2011-05-05 13:38:16
No worries, as long as the scheme is profitable for the insurer, it will continue. The fact that Aviva has been making so much profits that it can still give back premium rebates & refunds to policyholders of the SAF group insurance.

The reason why it's cheap and yet profitable is that the insurance is effectively targeted at below 65 yrs old. How many Singaporeans die or become TPD before 65? The SAF group insurance allows policyholders to continue coverage until 70 yrs old, but the premiums you pay from 66-70 is damn freaking expensive and you are only allowed maximum of $100K coverage.

Basically Aviva knows that at most, people will cancel when they hit 65 yrs old. For those dumb or desperate to continue until 70 yrs old, the premiums they pay will cover the payout costs (not everybody will die or TPD between 66-70 yrs old). Aviva is not stupid; they have already calculated their sums.

Over the next few decades, the specific insurer that Mindef uses will come & go. Long time ago it was NTUC Income. Then it was Insurance Corp Singapore. Now it is Aviva when it bought over ICS. Each time, the new insurer will take over the existing policyholders, even those already sub-standard health condition.

Similar to other national group insurance like your Home Protection Scheme and the HDB Fire Insurance. They've also changed a few insurance companies over the past 25 years.
Wilfred   |SAdministrator |2011-05-05 14:09:58
Anonymous,

May I remind you that even 'national' plan have been downgraded to the detrimental to policyholders. As an example, Medishield was 'downgraded' because of pro-ration factor due to means-testings at 'C' class ward. Those who relied on Medishield are in for a raw deal. Those already got pre-existing conditions are no longer able to find alternative plans.

Do not rely on uncertain foundation to gain financial independence. Relying group insurance as core-insurance is like a man who build his house on the sand. Such an individual fails to distinguish between fact and opinion; value and price.

Note that the above disclaimer I scanned is a disclaimer by SAF. It is not a disclaimer by Aviva.
Anonymous   |220.255.2.171 |2011-05-05 15:06:39
Medical insurance is a different breed of animal compared to life insurance or home insurance. Death is a one-time affair and insurer can control costs and sustainability by setting a cut-off year e.g. stop insuring those who are above 60 or 65.

Non-fatal accidents and sickness however are a lifetime occurring events, and it increases exponentially as you get older. The inconvenient truth is that medical insurance is facing continuous shrinking profits due to escalating medical inflation.

That's why you get means testing in Medishield and continuous large increases in insurance premiums for Private Shields. The jumps in premiums for private shields have been around 5%-6% per annum for younger ages and over 10% per annum for over age 65. I'm not talking about the age-banded premiums, but the across-the-board upward revisions in premiums every 3 or 4 years.

Private Shield is good, provided you can afford it. Majority of this blog's readers are upper-middle-class i.e. earning over $4K a month. So paying for Private Shield below 60 yrs old shouldn't be a problem. However unless your salary and savings and investments are going up at 8%-10% per annum to keep pace with medical insurance premium inflation, you will find that by the time you're in your 70s and 80s, it will be very tight to afford the medical premiums.

At least for Private Shields, they are integrated, so if you really cannot afford any Private Shield in your later years, you can downgrade to Medishield no questions asked.

For life insurance, there is no integration. If you're in your 40s and get retrenched and unable to get another similar paying job, you cannot downgrade from a more expensive life insurance to a cheaper one without having to go thru medical underwriting. If you already have borderline high cholesterol or hypertension or some sort of cysts, then good luck to you.
Amy   |202.156.10.15 |2011-05-05 16:25:51
Anon 156:39
As for life insurance, isn't a term plan cheap enough (when you buy it at a younger age) for you to afford even when one is retrenched? All the more, between a participating life and a term, the latter is a sounder choice?
Anonymous   |220.255.2.41 |2011-05-05 20:03:19
"For life insurance, there is no integration. If you're in your 40s and get retrenched and unable to get another similar paying job, you cannot downgrade from a more expensive life insurance to a cheaper one without having to go thru medical underwriting. If you already have borderline high cholesterol or hypertension or some sort of cysts, then good luck to you."
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You can downgrade by reducing the sum assured. However, you won't have this problem because the premium is low.
You won't have other problems too if you have one most important insurance, ie... THE EMERGENCY FUND. the mother of all insurance.
Now it is time to think again about your salesmen insurance agents. Did they ever recommend that you set up one?
If they didn't sack them ..Because they are incompetent ..they might be greedy to because they want to sell you the ntuc vivolife plan which has a rubbish retrenchment feature.
Steven   |220.255.1.135 |2011-05-06 10:49:29
compare to other low cost term...

SAF Aviva term to me is different cos the total volume getting are just too big, think about all the SAF Staffs, nsmen etc..

It cannot compare to those company term which will be force to increase price in order to renewal as their volume is less.
Wilfred  - re:   |SAdministrator |2011-05-06 10:58:12
Steven wrote:
compare to other low cost term...

SAF Aviva term to me is different cos the total volume getting are just too big, think about all the SAF Staffs, nsmen etc..

It cannot compare to those company term which will be force to increase price in order to renewal as their volume is less.


You mean too big to fail?

Actually I have confidence with Aviva that it will want the business. It is a lucrative business. The goodwill attached to it translate to good branding.

The weakest link is with SAF. The disclaimer I scanned above is by SAF, not Aviva. One's confidence with SAF varies depending on your current political views.
Steven   |220.255.1.160 |2011-05-06 11:08:50
Anonymous wrote:
Medical insurance is a different breed of animal compared to life insurance or home insurance. Death is a one-time affair and insurer can control costs and sustainability by setting a cut-off year e.g. stop insuring those who are above 60 or 65.

Non-fatal accidents and sickness however are a lifetime occurring events, and it increases exponentially as you get older. The inconvenient truth is that medical insurance is facing continuous shrinking profits due to escalating medical inflation.

That's why you get means testing in Medishield and continuous large increases in insurance premiums for Private Shields. The jumps in premiums for private shields have been around 5%-6% per annum for younger ages and over 10% per annum for over age 65. I'm not talking about the age-banded premiums, but the across-the-board upward revisions in premiums every 3 or 4 years.

Private Shield is good, provided you can afford it. Majority of this blog's readers are upper-middle-class i.e. earning over $4K a month. So paying for Private Shield below 60 yrs old shouldn't be a problem. However unless your salary and savings and investments are going up at 8%-10% per annum to keep pace with medical insurance premium inflation, you will find that by the time you're in your 70s and 80s, it will be very tight to afford the medical premiums.

At least for Private Shields, they are integrated, so if you really cannot afford any Private Shield in your later years, you can downgrade to Medishield no questions asked.

For life insurance, there is no integration. If you're in your 40s and get retrenched and unable to get another similar paying job, you cannot downgrade from a more expensive life insurance to a cheaper one without having to go thru medical underwriting. If you already have borderline high cholesterol or hypertension or some sort of cysts, then good luck to you.


i am currently on private shield private hospital plan plus full rider.

compare the price we paying now is cheaper unless when the price amt when 60 and above, the amount tend to be increasing.

well for me since i can afford the best now, shouldn't i get the best coverage and then later can reduce to what we can afford.

reason.. it is easier to downgrade plan.
Steven  - re: re:   |220.255.1.150 |2011-05-06 11:10:11
Wilfred wrote:
Steven wrote:
compare to other low cost term...

SAF Aviva term to me is different cos the total volume getting are just too big, think about all the SAF Staffs, nsmen etc..

It cannot compare to those company term which will be force to increase price in order to renewal as their volume is less.


You mean too big to fail?

Actually I have confidence with Aviva that it will want the business. It is a lucrative business. The goodwill attached to it translate to good branding.

The weakest link is with SAF. The disclaimer I scanned above is by SAF, not Aviva. One's confidence with SAF varies depending on your current political views.


yup, Aviva will not fail.

as for SAF, i don't think it is the weakest link since unless they can find another one to take over if not SAF will have to continue.
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