Term- aviva saf vs aviva myprotector-level plus

[Panerex]

Both are term insurance, and issues from the same insurer.

Of course, one is Group while the other is personal.

Other than that, what are the differentiating factors?

As some one who is MRed, I am still eligible for SAF one. So which term shd I go for?

TIA

 

[Callow Guy]

Sorry noob qn. Can MR personnel apply for SAF Term?

 

[Darkzi0n]

Group cheaper.
No significant drawback but some bros here say u cannot make nomination for the group plan. Any payout will be paid to u or the legal claimant

 

[lzydata]

I have used only the scenario in Aviva's MyProtector brochure (male, age 35 next birthday, 25-year term, $250k sum assured for life, TPD and CI) to compute the below. If you can, ask your agent or IFA to give you a quote on the specific terms you want, and also ask to see the policy contract.

Over 25 years, from age next birthday 35 to 59, SAF Aviva Group Term Life (Life & TPD) with the CI rider is actually slightly more expensive. The MyProtector plan has a total yearly premium of $1,164.35; the SAF Aviva plan a yearly average of about $1,370.00. Of course, to cut your bill, you have the option of reducing the SAF Aviva coverage later on, whereas MyProtector is set for the term you chose.

SAF Aviva has more benefits. It pays out at least 120% of sum assured for TPD. It also covers accidents - death, SAF-related death, TPD and accidental dismemberment - whereas MyProtector does not. Pay more but get more.

It is true that because SAF Aviva is a group policy, you cannot make a nomination for it. This will definitely complicate your estate planning. But that does not mean you or your beneficiaries will not get the sum assured. According to the LIA's guide on this:

If no nomination is made, the insurance company may pay up to $150,000 of the policy proceeds to any person who is considered a 'proper claimant' under Section 61 of the Insurance Act. Any remaining amount above $150,000 will be paid to the executor(s) named under a Grant of Probate or administrator(s) named under a Grant of Letters of Administration.

- Your Guide to the Nomination of Insurance Nominees 2013 (English)

From Section 61(12) of the Insurance Act:

“proper claimant” means a person who —
(a)
claims to be entitled to payment under subsection (2)(b) or (3) as executor of the deceased; or
(b)
claims to be entitled to payment under subsection (2)(b) or (3) (whether for his own benefit or not) and is the widower, widow, parent, child, brother, sister, nephew or niece of the deceased;

So I believe that the first $150k will go to your executor, who will anyway be in charge of distributing the rest of your estate, and the remainder will enter the estate afterwards. No nomination, but you can express your intentions in your will and the outcome should be the same.

 

[Darkzi0n]

saf group got some cash rebate during good years also

 

[tiny]

SAF-Aviva Group premiums are not leveled to age of inception.

 

[DarkBlue]

Does it make sense to separate into,
100,000 - SAF
150,000 - Aviva

Since SAF offers the flexibility coverage adjustments ?

 

[lzydata]

Does it make sense to separate into,
100,000 - SAF
150,000 - Aviva

Since SAF offers the flexibility coverage adjustments ?

Sure! There are many ways to mix and match insurance policies, terms and benefits to get what you want. However, normally people talk about mixing whole life policies (for lifetime coverage and long-term savings) and term policies (to be adequately covered for the younger years, especially for those with dependents). But here we're talking about mixing two term policies

Some ways you can do this:
- shorten the MyProtector policy's term, e.g. up to age 55 instead of 59 or 60. Generally if you are being covered for younger ages, then your premiums will be lower.
- reduce the SAF Aviva policy's sum assured for CI after age 46, because that's when the premiums start rising very quickly.
- reduce the entire SAF Aviva policy's sum assured for life and TPD too.

 

[gensity]

So in short myProtector plus is cheaper right?

 

[NiteX2]

So in short myProtector plus is cheaper right?

it still depends on your age when purchasing the plan and also the covered years among other factors