Singlife MINDEF/MHA Group Term Life Insurance Plan

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Singlife MINDEF/MHA Group Term Life Insurance Plan

4.5

/5

Type

Group Term Life Insurance (Portable)

Covers

Death, Total & Permanent Disability (TPD), Terminal Illness (TI)

Optional add-on Riders

Critical Illness (CI), Early CI, Disability

Overview

One of best value plans for those eligible, especially for Death/TI/TPD
May be the only truly portable, low-cost Group insurance plan in Singapore
Buy and manage online (with Singlife), without adviser or agent

For Whom

Suitable For

Eligible persons (Working NSmen, NSFs, eligible MINDEF & MHA employees) and their spouse and children, with standard (healthy) lives

Not Suitable For

People with pre-existing conditions, retirees

For What Purpose?

Income replacement for dependants or self in case of:

Death/TPD/TI

Lump sum payout to your dependants (up to $1m sum assured) to support their living expenses in case of your death/TPD.
An Advance Payment Benefit of up to S$400k in case of TI, balance upon death.

Critical Illness (Add-on Rider)

Lump sum payout to you (up to $500k sum assured) when diagnosed with late stage CI.

Expenses for alternative treatment for CI not covered by Shield (e.g., drugs not on cancer drug list, Traditional Chinese Medicine)
Not for hospitalisation expenses or early-stage CI coverage

What are the Pros & Cons?

Pros

Great value for money: main plan (Death/TI/TPD) has level premiums that don’t change up to age 65

Fit-for-purpose term plan with minimal exclusions

Covers up to age 70

MINDEF/MHA as policyholder to negotiate terms; pays for base coverage during full-time NS

Cons

MINDEF/MHA may change the terms including premiums

Spouse loses coverage upon divorce

Only for healthy persons: no ability to “load” premiums for non-standard lives

Premiums for CI add-on rider is not level and become more expensive after 45 years old (next birthday)

What's the Cost?

Premiums for Death/TPD/TI

For S$100,000 coverage, ages up to 65:
S$2.50 per month

For S$1,000,000 coverage, ages up to 65:
S$25 per month

Premiums for Critical Illness Rider (Add-on)

For S$300,000 sum assured (Both male and female):

Age	Per Month
25	$7.80
35	$16.20
45	$27.00
50	$74.40

Things to Note

Optional add-ons are available to enhance coverage to cover for late-stage critical illness, early critical illness, occupational disability income and outpatient medical cost, however premiums for riders increases with age and is not as competitive as personal term insurance for equivalent coverage which can be gotten at a level premium (premium is fixed based on age of entry and that does not increase with age).
For CI riders, premiums for late-stage CI start to become a lot more expensive after the age of 45, and after 50 for the early-stage CI.
For early-stage CI rider, only 10 early CI conditions are covered.

Written by: Anton Tan, CFP®

Last updated: 21 November, 2024

Disclaimer: This publication has not been reviewed by the Monetary Authority of Singapore. The information contained herein does not have any regard to the specific investment objective(s), financial situation or particular needs of any individual. Buying insurance is a long-term commitment and should be based on your unique needs and the suitability of the products. It is advisable to seek advice from a financial adviser to assess your needs and guide you on the features and details of the products before making any financial decisions. The coverage, benefits, premiums, and terms of insurance policies may vary depending on individual circumstances and insurance providers. Individuals are encouraged to review their own insurance needs and policies and seek advice tailored to their specific situation. While every reasonable care is taken to ensure the accuracy of the information provided, no responsibility can be accepted for any loss or inconvenience caused by any error or omission.

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