Should I cancel VivoLife?

[deathman91]

My dad bought a whole life (NTUC INCOME - VivoLife) 3 years ago for me. And I am thinking of cancelling it as it doesn't seems worthwhile to me. It's my first time weighting the pros and cons vs getting a term plan. so I am not sure if I am doing it right.

NTUC VIVOLIFE
SUM ASSURED : 31K
Annual PREMIUM : 577
Premium Term : 25 years.

VS

AVIVA SAF GROUP TERM
SUM ASSURED : 100k
Annual Premium : 153.60 (Before rebates)

It works out to cost about $48 annually if I will to get a term coverage of 31k going by AIVIA's rate. In order words, $577 - $48 = $529 should go into the 'saving' portion of the whole life.


The surrender value projected at their rate of 3.75% at end of policy year 25 is only 13,350(GTD) and 4,197(NON-GTD). Total = 17,547.

N=25, PV = 0, PMT=-529, FV = 17547
That's an yield of only 2.27%. How can they say its 3.75%!

I am not sure how the insurer is going to determine the NON GTD payout portion. If just taking the GTD amt, I am almost getting close to 0% yield...


So all is pointing to terminate this plan, am I correct?

 

[Perisher]

This ain't very objective. Wait for other non-agents to chip in.

 

[wts2013]

u shld not look at a wholelife policy this way, ie shld not just compare premium to term, u need to better understand the benefits of vivolife. The sum assured will increase over the years, ie 31k is just the starting point. Your dad bought it 3 years ago, so it is cheaper at a younger age, if u want to buy similar one now, premiums will be higher.

my relative bought a different wholelife policy from ntuc, with the current surrender value, it is earning 5% on average over 30 years.

Wholelife shld be held until term ends, u will be surprised by what u will get for retirement then.

 

[anfielder]

My dad bought a whole life (NTUC INCOME - VivoLife) 3 years ago for me. And I am thinking of cancelling it as it doesn't seems worthwhile to me. It's my first time weighting the pros and cons vs getting a term plan. so I am not sure if I am doing it right.

NTUC VIVOLIFE
SUM ASSURED : 31K
Annual PREMIUM : 577
Premium Term : 25 years.

VS

AVIVA SAF GROUP TERM
SUM ASSURED : 100k
Annual Premium : 153.60 (Before rebates)

It works out to cost about $48 annually if I will to get a term coverage of 31k going by AIVIA's rate. In order words, $577 - $48 = $529 should go into the 'saving' portion of the whole life.


The surrender value projected at their rate of 3.75% at end of policy year 25 is only 13,350(GTD) and 4,197(NON-GTD). Total = 17,547.

N=25, PV = 0, PMT=-529, FV = 17547
That's an yield of only 2.27%. How can they say its 3.75%!

I am not sure how the insurer is going to determine the NON GTD payout portion. If just taking the GTD amt, I am almost getting close to 0% yield...


So all is pointing to terminate this plan, am I correct?

I'm guessing you're still quite young. In your 20s?

In that case Aviva SAF is not even the cheapest term policy around.

You can consider replacing the whole life policy with term and investing the difference. But because the premium amount is quite small to begin with, it may be difficult to do that unless you have other investible funds.

 

[shingy]

SA 31K is definitely too little for today's context. Vivolife comes with critical illness coverage as well. I supposed the most CI payout is only 31K. I wondered what can you do with 31K payout when critical illness strikes.

Also, the calculation is not an apple to apple comparison. The SAF group term policy does not cover CI and cover only up till age 65. Vivolife covers up till age 99.

Lastly, just stick to your objective of buying those insurance plan and get one within your budget. Every now and then, new products are coming up in the market at competitive pricing. I don't think you would want to change plan everytime you found a cheaper one.

 

[matchy]

my take is to continue

 

[Nyan]

i say continue too.

unless along the road there's a better plan but for now its good!

 

[MaoZeDuo]

My dad bought a whole life (NTUC INCOME - VivoLife) 3 years ago for me. And I am thinking of cancelling it as it doesn't seems worthwhile to me. It's my first time weighting the pros and cons vs getting a term plan. so I am not sure if I am doing it right.

NTUC VIVOLIFE
SUM ASSURED : 31K
Annual PREMIUM : 577
Premium Term : 25 years.

VS

AVIVA SAF GROUP TERM
SUM ASSURED : 100k
Annual Premium : 153.60 (Before rebates)

It works out to cost about $48 annually if I will to get a term coverage of 31k going by AIVIA's rate. In order words, $577 - $48 = $529 should go into the 'saving' portion of the whole life.


The surrender value projected at their rate of 3.75% at end of policy year 25 is only 13,350(GTD) and 4,197(NON-GTD). Total = 17,547.

N=25, PV = 0, PMT=-529, FV = 17547
That's an yield of only 2.27%. How can they say its 3.75%!

I am not sure how the insurer is going to determine the NON GTD payout portion. If just taking the GTD amt, I am almost getting close to 0% yield...


So all is pointing to terminate this plan, am I correct?

3.75% is just the projection of investment return... and the figures u see are after effects of deductions and hence u are partly right... the resulting yield after eod is about 2%...

if u wish to not look at the non gtd portion... u can just look at the gtd portion... breakeven maybe 40 years later? so the purpose here is clearly different from saf group term... basically u are asking NTUC to invest the basic premium for u in order to make ur policy "free" after X years...

 

[Perisher]

If all one is getting is 2%, can buy government bonds which give guaranteed 2.63% that matures in 10 years and keep rolling?
Add in a term plan and that's about it.

 

[naro]

This ain't very objective. Wait for other non-agents to chip in.

I think that the arguments put forward were quite objective.

Nevertheless, back to the TS topic, can't compare term and whole life insurance. Anyway, the premium is only $577 per annum, keep it. Down the road, if TS dont want to pay,convert into paid-up or take automatic premium loan (APL). No need to pay anymore and still get the coverage.

 

[Aerial86]

and if my relative already have vivolife for 3yrs, and need to get a surgery next year - touchwood if my relative dies during the surgery or month after that - can his family claim TPD?

Hi, TPD is total permanent disability. In your relative's case, the death coverage will be paid out instead.

As for the premium of $100k sum assured for newborn, you could pm me the birthdate and gender for a reference quote. But that shouldnt be the priority until hospitalization plan has been done up.

 

[Perisher]

I think that the arguments put forward were quite objective.

Nevertheless, back to the TS topic, can't compare term and whole life insurance. Anyway, the premium is only $577 per annum, keep it. Down the road, if TS dont want to pay,convert into paid-up or take automatic premium loan (APL). No need to pay anymore and still get the coverage.

Thank you so much for speaking up.

I was pondering over why my points are consider as non-objective. Maybe according to EDMW logic, all agents are dishonest, unethical, liars etc.

To be fair, I can't say why I think it's not objective now since the message has been edited after I commented. Will assume the message is largely the same.

Anyway, to have an objective view, one must listen to more than what insurance agents are saying, don't see what's wrong with that?

Also, if the premium, returns, coverage are the same, then the comparison can be established no?

 

[DinoDinoRan]

My dad bought a whole life (NTUC INCOME - VivoLife) 3 years ago for me. And I am thinking of cancelling it as it doesn't seems worthwhile to me. It's my first time weighting the pros and cons vs getting a term plan. so I am not sure if I am doing it right.

NTUC VIVOLIFE
SUM ASSURED : 31K
Annual PREMIUM : 577
Premium Term : 25 years.

VS

AVIVA SAF GROUP TERM
SUM ASSURED : 100k
Annual Premium : 153.60 (Before rebates)

It works out to cost about $48 annually if I will to get a term coverage of 31k going by AIVIA's rate. In order words, $577 - $48 = $529 should go into the 'saving' portion of the whole life.


The surrender value projected at their rate of 3.75% at end of policy year 25 is only 13,350(GTD) and 4,197(NON-GTD). Total = 17,547.

N=25, PV = 0, PMT=-529, FV = 17547
That's an yield of only 2.27%. How can they say its 3.75%!

I am not sure how the insurer is going to determine the NON GTD payout portion. If just taking the GTD amt, I am almost getting close to 0% yield...


So all is pointing to terminate this plan, am I correct?

So did you terminate ?