Should i keep my NTUC foundation policy or AVIVA SAF?

[catachan]

i am currently paying $67/mth for 75k sum assured for the NTUC foundation policy since 1995.

and i have a aviva SAF policy $16/mth for 125k sum assured.

i m considering to surrender the NTUC policy since I have to pay more for lesser sum assured.

am i missing something out here? since this foundation policy has been there for 16 years.

I need some advice please because i don't think i need both policies.

 

[jack81]

Do you have 75K liquidity right now in case there is a crisis right now?

If yes, you can go ahead and cancel the policy.

 

[catachan]

Do you have 75K liquidity right now in case there is a crisis right now?

If yes, you can go ahead and cancel the policy.

hihi what u mean by crisis?

i thought both policy provides the same kind of deal.

as in the person only get the assured sum when he/she is permanent disabled or death.

 

[jack81]

Crisis is defined as in the person only get the assured sum when he/she is permanent disabled or death.

So do you have liquidity 75K right now if crisis occurs *touch wood*?

 

[catachan]

Crisis is defined as in the person only get the assured sum when he/she is permanent disabled or death.

So do you have liquidity 75K right now if crisis occurs *touch wood*?

no i dont have... but doesnt the SAF Aviva already cover 125k?

 

[jack81]

no i dont have... but doesnt the SAF Aviva already cover 125k?

Would you or your family reject another 75K during crisis time?

When people claim insurance, they will always say the amount is never enough.

 

[catachan]

Would you or your family reject another 75K during crisis time?

When people claim insurance, they will always say the amount is never enough.

hmm icic thanksss

also, instead of paying $67/mth for 75k NTUC policy, i could upgrade my AVIVA to $76/mth for 600k sum assured.

is this a better way of managing my insurance instead?

 

[Financial Guru]

Why not convert your ntuc policy to fully paid up instead of surrendering?
The policy can still accumulate value

 

[jack81]

hmm icic thanksss

also, instead of paying $67/mth for 75k NTUC policy, i could upgrade my AVIVA to $76/mth for 600k sum assured.

is this a better way of managing my insurance instead?

Based on monetary terms, it is definitely a better way of managing. Other than that I cannot think of other ways.

 

[catachan]

Why not convert your ntuc policy to fully paid up instead of surrendering?
The policy can still accumulate value

sorry what do you mean by fully paid up, i dont understand this term

 

[justicesg]

hmm icic thanksss

also, instead of paying $67/mth for 75k NTUC policy, i could upgrade my AVIVA to $76/mth for 600k sum assured.

is this a better way of managing my insurance instead?

That sounds like a good idea as it is a bang for buck coverage.

 

[henrylbh]

i am currently paying $67/mth for 75k sum assured for the NTUC foundation policy since 1995.

and i have a aviva SAF policy $16/mth for 125k sum assured.

i m considering to surrender the NTUC policy since I have to pay more for lesser sum assured.

am i missing something out here? since this foundation policy has been there for 16 years.

I need some advice please because i don't think i need both policies.

The difference is too huge. Definitely there must be more differences between the two besides sum assured.

 

[dao]

Aviva saf is a term policy. Not sure about ntuc foundation policy.

 

[Financial Guru]

sorry what do you mean by fully paid up, i dont understand this term

Ooppsss..sorry for not explaining.

Anyway, NTUC Foundation policy is an endowment plan with a specified maturity date where at the maturity date, you get a sum of money back from the insurer, hence the higher premiums.

If you don't want to continue paying the premiums, you can convert the policy to paid up, where Income will reduce the sum assured to a level such that the total amt of premiums already paid covers the remaining duration of the endowment plan.

Every year, NTUC income sends you an orange coloured list of policies you have with them. If you kept last year's list, you should be able to see a cash/surrender value tied to your foundation policy.

Aviva SAF is a term plan that ends after a certain duration (eg. 10, 20 years). You don't get back any $$ if you don't make any claim, something like health or motor insurance.

 

[Cashcow]

SAF the plan is a group plan.

When it comes to claiming, you will encounter some difficulties. Get yourself a personal term plan.

 

[Micky Neo]

i am currently paying $67/mth for 75k sum assured for the NTUC foundation policy since 1995.

and i have a aviva SAF policy $16/mth for 125k sum assured.

i m considering to surrender the NTUC policy since I have to pay more for lesser sum assured.

am i missing something out here? since this foundation policy has been there for 16 years.

I need some advice please because i don't think i need both policies.

Hi catachan,

Aviva is a term policy. It provides financial compensation in the events something happen to the life assured during the term. If no claims is filed during the term, the policy expires without any cash value. Eg is travel insurance and car insurance, they are like term insurance.

Income Foundation is an endowment policy, a saving plan. I had an enquiry from someone wanting to sell his foundation policy, think it's maturity date is 2042.
It's a old (how did you get this policy?? probably by vesting from your parent, very long term (almost like whole life) saving plan with special payout for tertiary education.

An endowment accumulates cash value(which you can surrender unlike a term) and gives you a lump sum upon claim or maturity. If a claim is filed, this policy will pay your beneficiary 75K plus bonus. If no claim is filed and upon maturity, it'll give you 75K plus bonus, a figure which constitute a part of your retirement savings.

For 83 dollars a month, you have an endowment (>75K at maturity) and a protection of > 200K, that's very decent.
Unless you can find work out something better, in terms of similar coverage, risks and returns, you need both.

They are for different purposes:
Shield plans for hospital bills,
Whole life, terms ILP to cover death, TPD, TI, Criticall illness
(low premium, higher coverage, but no or low/slow cash value)
Savings (steady accumulate your wealth, preserve, low risk)
Investment (aim for higher returns, higher risk)

You can use some good financial planning from the guys here.

regards
Micky Neo

 

[Jarlaxle]

SAF the plan is a group plan.

When it comes to claiming, you will encounter some difficulties. Get yourself a personal term plan.

can u give us more details? so that i can email aviva or saf?

id post my replies here after they reply

tbh, i dun tink its easy to claim for any insurance coy.... i mean...... which coy wants to pay u so willingly w/o finding out all the facts ?

 

[Jarlaxle]

hmm icic thanksss

also, instead of paying $67/mth for 75k NTUC policy, i could upgrade my AVIVA to $76/mth for 600k sum assured.

is this a better way of managing my insurance instead?

this is a very good idea

another thing to take note is that personal accident and critical illness coverage is cheap to get for a small sum too
4 bucks for 100k coverage for personal accident and 20 bucks for CI

 

[dante-z]

maybe he means because its group, no agent, so your beneficiary need to do the claims themselves ?

sorry i not too sure too

 

[Cashcow]

can u give us more details? so that i can email aviva or saf?

id post my replies here after they reply

tbh, i dun tink its easy to claim for any insurance coy.... i mean...... which coy wants to pay u so willingly w/o finding out all the facts ?

http://www.aviva.com.sg/customer-care/faqs/index.html#saf

Check out the Nomination Of Beneficiaries.

Tbh, if you want the claim to be fast, make the nomination.