Term Vs Life Clarification

[Candice Swanepoel]

Hi guys,

I have been reading many a time that Term Life is ALWAYS cheaper than a Whole life policy. But today using my Aviva GTL As the main plan with Living Care , Living Care Plus rider.

I came to the amount that makes me wonder if term is really ALWAYS cheaper?

GTL 350K $44.80 till age 65 = $23116.8
GTL 150K till age 65 = $9907.2
Living Care (CI Coverage) = $28517
Living Care Plus (Early Ci Coverage) = $21469.8
Total =$73102.8 or $64102.8 with only 150k GTL



In comparison , A whole life plan with AXA.

At $179.08 20 years premium term.

Death/TPD/CI/EarlyCI : 150k before 70
43k after 70
Total = $44016 (Paid Monthly)
$41907.8 (Paid Annually)

I hope to get some clarifications. 22 Male, Non Smoker

 

[Perisher]

Hi guys,

I have been reading many a time that Term Life is ALWAYS cheaper than a Whole life policy. But today using my Aviva GTL As the main plan with Living Care , Living Care Plus rider.

I came to the amount that makes me wonder if term is really ALWAYS cheaper?

GTL 350K $44.80 till age 65 = $23116.8
Living Care (CI Coverage) = $28517
Living Care Plus (Early Ci Coverage) = $21469.8
Total =$73102.8



In comparison , A whole life plan with AXA.

At $179.08 20 years premium term.

Death/TPD/CI/EarlyCI : 150k before 70
43k after 70
Total = $44016 (Paid Monthly)
$41907.8 (Paid Annually)

I hope to get some clarifications. 22 Male, Non Smoker

The coverage difference must be taken into account.

 

[Shion]

Well, SAF Aviva GTL is indeed much more expensive if you compare it with other term insurance. Their main portion covers things like death and injury, and excludes out CI + early CI. These 2 portions are additional items, need to pay more for them.

That is my understanding.

 

[Candice Swanepoel]

The coverage difference must be taken into account.

Let's say I change GTL 350K->150K
150k till 65 is $9907.2

Making the total to be $64102.8.

Well, SAF Aviva GTL is indeed much more expensive if you compare it with other term insurance. Their main portion covers things like death and injury, and excludes out CI + early CI. These 2 portions are additional items, need to pay more for them.

That is my understanding.

Seems like ALOT more..

 

[Shion]

Seems like ALOT more..

Not sure, never go check it out. But add in CI + early CI, this SAF Aviva term will end up less attractive.

 

[Perisher]

Let's say I change GTL 350K->150K
150k till 65 is $9907.2

Making the total to be $64102.8.




Seems like ALOT more..

Still different coverage. The early CI and CI rider is in addition to GTL from the website
https://www.aviva.com.sg/life-and-health/for-individuals/SAF/saf-living-care.html

Your wholelife plan with AXA is no additional coverage, pay once on either CI or death or TPD.

Correct me if I'm wrong.

 

[dak hand41]

The quote you have been provided by AXA whole life plan is pretty good "Death/TPD/CI/EarlyCI : 150k before 70
43k after 70".

Just make sure the total premium paid annually for 20 years sums up to $41907.80 in total. This is because I was quoted by a prudential agent in the region of 51k for an ordinary 100k Whole life with CI/Early CI coverage

 

[iCuteCube]

You forgot the rebate GTL give yearly leh

Its not really possible to compare this 2 apple-to-apple.

If you are 22 this year, it might make sense for you to get a WL plan, as there are some articles that show the maximize ROI for WL is of course earlier possible, the average return drop sharply after 25 or 26 years old, cant remember, but don't quote me, haha.

Do your calculations and estimation before making a decision. Estimation because premiums are not normally fixed for term insurance subjected to changes, taking into consideration the difference in premium for self-investment ROI returns over 40+ years for your case.

There are really much more to take into consideration when someone that is "ai-pi-ai-qi" type, lol.

A standard question to ask is, do you see your saving account go up year by year fairly constantly? If the answer is yes, then it just open the door wide open for other opportunity with RISK and RETURNS.

 

[anfielder]

Just 2 comments:

1. SAF GTL is not the cheapest term plan for younger folks.
2. A whole life plan is front loaded i.e. more expensive than term in the early years, cheaper than term in the later years. That's less money available in the early years to take advantage of the power of compounding.

 

[Candice Swanepoel]

Still different coverage. The early CI and CI rider is in addition to GTL from the website
https://www.aviva.com.sg/life-and-health/for-individuals/SAF/saf-living-care.html

Your wholelife plan with AXA is no additional coverage, pay once on either CI or death or TPD.

Correct me if I'm wrong.

Thanks for this pointer. I did not realise this until you pointed it out to me.

Everything except Accidental death is paid in advance to death benefit.

You forgot the rebate GTL give yearly leh

Its not really possible to compare this 2 apple-to-apple.

If you are 22 this year, it might make sense for you to get a WL plan, as there are some articles that show the maximize ROI for WL is of course earlier possible, the average return drop sharply after 25 or 26 years old, cant remember, but don't quote me, haha.

Do your calculations and estimation before making a decision. Estimation because premiums are not normally fixed for term insurance subjected to changes, taking into consideration the difference in premium for self-investment ROI returns over 40+ years for your case.

There are really much more to take into consideration when someone that is "ai-pi-ai-qi" type, lol.

A standard question to ask is, do you see your saving account go up year by year fairly constantly? If the answer is yes, then it just open the door wide open for other opportunity with RISK and RETURNS.

Yes. I see my savings account going up constantly.

Just 2 comments:

1. SAF GTL is not the cheapest term plan for younger folks.
2. A whole life plan is front loaded i.e. more expensive than term in the early years, cheaper than term in the later years. That's less money available in the early years to take advantage of the power of compounding.

If Aviva is not the cheapest , would ntuc be the cheapest because of the large customer base?

Yes. That is my main concern for the simple fact that whole life plan is very taxing early on and ease out when I have completed the premium. BUT I would have lost the investment opportunity during the 20 years of paying premium.






Also , I would like to buy a PA which has medical reimbursement. And I have read thru extensively , finding tenet sompo PAStar to be the best recommended. HOWEVER I am part of the exclusion footnote that says that I am only covered during Off - Duty hours.
Would a PAssurance plan be advisable?