Comparing Group Term Insurances

It is important that we look into our coverage at every stage of our life. We can look into a few options ranging from Whole Life, Term to Group term plans. Each plans have their merits but the lowest cost among the above 3 are generally "Group Term Insurance".

Group insurance is a plan which individual employees or members are included under one 'master policy' owned by their employers or organization such as Unions and Clubs. A group insurance plan has many contributors of different ages and sex and hence able to provides more coverage at a lower cost per participant. Individual members of a group insurance plan will then receive an insurance certificate to prove their eligibility for benefits.

I had recently increased my coverage in the SAF Group term as I do not like the idea that I must have a membership to something before I can get my group insurance. I like to share very briefly my research findings on the 4 group insurance schemes that I'd done recently.

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Out of the 4 Group Term Plans, 3 of them are offered by NTUC Income

1) POGIS - Public Officer Group Insurance Scheme (NTUC Income)
* This scheme is specially arranged by the Public Service Division and NTUC Income to provide coverage for employee of Government Ministries or Statutory Boards.
* It provides coverage for death and disability with an option to cover 30 critical illnesses.
* There are two plan types under POGIS namely the POGIS Basic and POGIS Basic Plus. The Plus plan provides coverage after retirement from the public service up to age 65.
* For age below 45, a $200k death cover and $100k CI cover cost you only $21/month.
* For age between 56 to 60, the same cover shall cost you $103.50/month.

My comments:
* You need not pay for any monthly or annual membership fee for this plan. You are eligible as long as you remains in service.
* The average cost of a $200k Death and $100k CI POGIS cover based on age 31 to 65 is only $61/mth and $67.50/mth for the Plus plan.
* The con of POGIS is that the risk of losing this coverage is the highest as leaving Statutory Board or Government Ministry like resignation or retrenchment means that your cover will cease at the same time.


2) LUV Plan (NTUC Income)
* LUV Plan is specially designed for NTUC members. Being an NTUC member will means that you pay that $9/month of subscription fees.
* It can provides cover for death/ptd/30 Critical illnesses and a Hospital Income
* For age below 45, a cover of $200k death and $100k CI cost you $29/mth
* For age between 56 to 60, the cost rise up to $86/mth

My comments:
* The memebership cost $9/mth. If you are using the membership actively, then it make sense to apply for this insurance scheme. My opinion is don't apply for membership just because you want to get this LUV plan.
* The average cost of a $200k Death and $100k CI cover based on age 31 to 65 is $66.93/mth. Slightly more than POGIS
* Chance of losing this plan is lower but you will be stuck with your NTUC memebership if you have health problem which disallow you to take up any insurance scheme for your own again.


3) SAF Group Insurance Scheme (Aviva)
* SAF Group Insurance Plan is specially designed for all NSF, DXO, MINDEF Public Officers and SAF Operational Ready NSmen.
* It can provides cover for death/ptd/30 Critical illnesses and a Hospital Income
* For age below 45, a cover of $200k death and $100k CI cost you $35.60/mth
* For age between 56 to 60, the cost rise up to $125.60/mth

My comments:

* The cost is comparative higher if we compare it with LUV and POGIS.

* The average cost of a $200k Death and $100k CI cover based on age 31 to 65 is $78.10/mth.

* Chance of losing this plan is the lowest of the 4 group term because we need not remember to pay any subscription or membership fee like LUV or fear of leaving the organisation like POGIS.

4) SAFRA Living Care and Essential Term (NTUC Income)
* SAFRA Group Insurance Plan is specially designed for all SAFRA members. Membership cost around $3/month.
* It can provide cover for death/ptd/30 Critical illnesses and Hospital Income

* For age below 45, a cover of $200k death and $100k CI cost you $36/mth

* For age between 56 to 60, the cost rise up to $105/mth

* Maximum cover for Living Care from age 61 to 65 is only $50,000 and Essential Term is $150,000

My comments:
* The average cost of a $200k Death and $100k CI cover based on age 31 to 65 is $77.14/mth. Slightly more than POGIS
* The cost is comparative higher if we compare it with LUV and POGIS but slightly lower than SAF Group Term.
* Cost of SAFRA membership is modest compared to NTUC Membership

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* I must clarify that I'm not comparing benefit by benefit on the 4 group term plans above or to look into minor exclusions, etc. You may like to refer to the respective insurers website to undertand more. They are not exactly apple to apple comparison.

* POGIS cost least because there are probably more young people than old in this group due to several reasons. However, the risk of losing it is the highest.

* The LUV plan is the next most cost competitive plan but the idea of paying $9 or more in future of membership fees can put us off. Forgetting to pay for your membership may cause you losing your much needed cover as well.

* The SAF group insurance is the highest cost but fear of losing it seems to the lowest.

In my next posting, I'll write a bit more about Benefits and disadvantages of Group Term Insurance.