Sunday, November 6, 2011

My favourite life insurance plan in Singapore - Aviva SAF Group Insurance for NSmen

4 Nov 2012: A new update for this plan has been written.

My favorite life insurance plan in Singapore for family protection in the event that I can no longer serve as a breadwinner for the family is the SAF Group Insurance for NSmen from Aviva. I am a policy-holder for several years already.

It is the best deal in Singapore that I know of that fits my criteria. It offers the best value for money per dollar for protection. For an annual premium of about SGD920, you are covered up to SGD600k. The coverage extends to high-risk activities like military training which I do not think is covered by other insurance policies.

There is an advance payment of 50% (limited to SGD100k) if the insured is diagnosed with a terminal illness. There is even a daily hospital cash benefit which pays up to SGD10 for every SGD50k assured. One thing I like about this policy is the partial cash rebate of the annual premium during good years. I know of no other policies that have a similar feature.

For parents with sons who are going for National Service soon, it is a policy worth considering. To my knowledge, it is the only policy that covers mishaps during National Service.

For more details, please visit and read the footnotes and the clauses yourselves. My brief summary cannot cover all the restrictive clauses that all buyers should be aware before buying.

If you know of a better deal, please tell me. I am confident none exists.

Please note that there is no savings or investment component in this insurance plan. In other words, you do not get back any money at the end of the day. This is why it is so much cheaper than the endowment, whole-life or investment-linked policies that insurance agents like to sell. It is a pure protection plan which is almost never recommended by insurance agents because it pays very little commission. So, if you want to buy this policy, do the agents a favor. Don't expect them to visit your home for this policy. If they do, it is reasonable that you will have to put up with sales talk for the higher commission products like the endowment, whole-life or investment-linked policies. Submit the application form yourself.

As a general rule, I never liked insurance products that mix investment or income. If I want income, I will go for fixed-income products like government bonds or fixed deposits. Insurance plans that offer income come with projected returns which cannot be relied upon. Ignorant customers can be easily taken in by the aggressive projected returns to lure them into buying. It is easier to analyze fixed-income products with guaranteed returns than insurance plans with projected returns. The insurer actually has an incentive to use unrealistic projected returns to boost sales. Consumers should be aware of this risk when assessing these kinds of insurance products.


  1. Aviva is definitely a group term policy everyone should purchase to beef up their death sum assured as part of their portfolio including the living care critical illnesses plan.

    However, your advice is a little misinformed, because these are term plans that expires at age 65 which means if you are going to advice the general public to just maintain this policy alone and not have a permanent plan that covers beyond that, what happens when one is diagnosed with critical illnesses at age 66?

    Especially for Aviva living care where it is increasing premium, especially from age 55 to 65, premium is amazingly expensive with no cash return, you are looking at paying between $2k - $4k per year for $300k Critical Illnesses sum assure.

    So if one is only going to depend on this policy for their own coverage, I would say good luck in your old age especially when you are more worried about retirement and it is also when you need the coverage the most because of much higher chances of claiming and premium from age 60 - 65 is easily $4k per year and you run the risk of not being covered from age 65 to say age 85. that is 20years of no coverage.

    My advice: Buy the maximum for Aviva group term that covers death and critical illnesses but don't forget to have one that covers beyond that when it expires and there are term policies in the market that cover whole of life for death and critical illnesses.

  2. Hi Dylan,

    Your comment is informative. Thank you.

    However, your advice is a little misinformed, because these are term plans that expires at age 65 which means if you are going to advice the general public to just maintain this policy alone and not have a permanent plan that covers beyond that, what happens when one is diagnosed with critical illnesses at age 66?

    Just maintaining this policy alone is surely bad advice but I reread the post and don't know where in my post gave readers that impression. I hope other readers do not get the wrong impression. This insurance policy is the most value-for-money death insurance to protect the family when the bread-winner is dead. Health insurance is a separate matter. A person needs health insurance to protect himself as well as the family if he is not sick enough to be dead.

    To me, the most important form of insurance is health protection. For this, I spared no expense in buying the best Hospital and Surgery plan.

  3. Term life insurance is certainly a good choice for people who are on a tight budget since it offers a lot of coverage for a relatively lower monthly premium. If you're young and only looking for temporary protection then this type of insurance is probably best for you.

  4. This blog is very informative the stuff you provide I really enjoyed insurance cheap rates

  5. I’m eager to find the valuable information and for me this is the right place to get the good insurance quote

  6. Trouble comparing insurance quotes? InsuranceGuru will help you to find the best Life Insurance Singapore quotes as per your needs to save time and money.

  7. Hello everyone, this message is only for people that live in united state if you are interested in credit card top up email us via: we only need people that are very faithful and you will also gain from this alot.

  8. Hello Everybody,
    My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of $250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of $250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius, call/whats-App Contact Number +918929509036 via email:( Thank you.