Aviva MINDEF/MHA group insurance: Should you consider getting this?

“I can’t wait to ORD” – I’ve heard this phrase from every Singaporean guy that I have known.

Whether you like it or not, National Service (NS) is a mandatory conscription for every male citizen and Permanent Resident (PR) to undertake after turning 18 years old. This transition to a new stage of life may be a stressful time for both you, a soon to be recruit, and the people around you. 

When you think about National Service, you think of boys transforming into grown-up men, or maybe men running around with a rifle and training to defend the country. These recruits get pushed out of their comfort zones and are placed in situations that may be dangerous and physically demanding. 

Sounds scary, doesn’t it?

So if you’re an overly-protective parent, a kiasu soon-to-be recruit, or just a kaypoh Singaporean, here’s a breakdown of much insurance coverage a recruit gets in national service.

What are some of the risks involved when serving the nation?

With most things in life, comes a certain degree of risk. Even though the likelihood of you meeting with an unfortunate fatal accident while serving the National Service is extremely low, the government still wants to ensure that you’re safe and insured. Your safety is still, and will always be their top priority.

But what if (touch wood) you get into an accident during national service? This is why each and every person serving the army is provided with insurance coverage, for the “just in case” something happens.

Like the kiasu Singaporean, you might be wondering if the insurance provided is enough coverage? Or should I buy more to protect myself?

What is the Aviva MINDEF/MHA Group Insurance?

The MINDEF/MHA group insurance is offered to all NSF and NS men the moment you enlist into national service. There is no registration required, and it is an automatic coverage that you will receive once enlisting. All premiums are also paid for by MINDEF during your service, which makes this essentially free for you.

This coverage will last for as long as you’re serving national service, as well as after you ORD during reservist. 

How much coverage does the Aviva MINDEF/MHA Group Insurance provide you while serving the army?

All NSFs are provided with S$150,000 Group Term Life and S$150,000 Group Personal Accident insurance coverage during the terms of service as part of the core scheme.

One of the key benefits of this coverage is that it covers pre-existing conditions too. However, keep in mind that they have to be declared prior to application, and are subjected to underwriting as well. This means if you’ve had a health condition, e.g. asthma before serving nation service, you should still be insured.

Who Can Apply: Aviva MINDEF/MHA Group Insurance Voluntary Scheme

Unless you sign on in the army, you will no longer receive the benefits of free insurance coverage. However, you now have the choice to opt for the voluntary scheme, if you want to continue receiving the coverage. 

This voluntary scheme is available to all NS men and their dependants; spouse and children (whether biological or legally adopted).

Even though the premiums are no longer paid for by the government, the prices are kept significantly lower and cheaper compared to other insurance plans. 

For just $1 per month, you can get coverage of $100,000 for personal accident coverage, and $4.10 per month for coverage of $100,000 for group term life insurance as well.

Purchasing both premiums costs less than a cup of large bubble tea at koi, so it definitely checks the box of affordability.

However, if you feel that you need additional coverage, there is an option of purchasing coverage of up to $1 million for term life, and coverage of up to $600,000 for personal accident. 

Here’s a table to help you to find out the prices for protection coverage and premium rates.

Do note that these premium rates are only applicable until the age of 65, and renewal thereafter would be significantly more expensive

The voluntary scheme includes Group Term Life and Group Personal Accident coverage, as well as riders to cover critical illness, early critical illness, and disability. 

As an eligible member, you can also purchase this insurance coverage for both you and your dependents as long as you’re insured.

In the event that you pass away before your dependent (insured spouse), they would still have the option to continue with the insurance coverage until age 70.

This scheme even provides worldwide coverage, regardless of geographic location. 

What does the term life insurance provide you with?

Unlike whole life insurance, term life provides you with the flexibility of choosing the length of coverage as well as offers lower premiums compared to whole life.

For the MINDEF/MHA group insurance term life, it provides coverage in the event of death and permanent disability. The coverage will last till age 70 next birthday (ANB).

One key feature of this policy is that no underwriting and medical checkup is necessary for up to $250,000 coverage. This means that if you have a pre-existing condition, you will not be excluded from the coverage.

What does personal accident insurance provide you with?

The MINDEF/MHA group personal accident insurance provides you with coverage in an event of an accident. This coverage includes smaller injuries and even reimbursement of the cost of an ambulance ride. 

Personal accident insurance provides you and your loved ones with greater assurance and peace of mind.

Increase your coverage with additional Riders:

Riders are additional benefits that can be bought to be added to an existing insurance policy. This allows you to customize a policy to suit your needs and provides you with extra coverage whenever necessary. 

This policy allows policyholders to enhance their coverage by adding-on riders to your main insurance plan. These are optional and serve as extra coverage available.

Is the Aviva MINDEF/MHA Group Insurance Voluntary Scheme for you? Keep or Cancel?

In conclusion, the Aviva MINDEF/MHA group insurance voluntary scheme is one you should think about when looking to purchase a term life policy. As one of the cheapest options for term life policies on the market, this should definitely be an option to consider if you’re eligible!

  • Affordable Premiums

Until the age of 65, premiums are kept extremely low. At just $1.37 per day for the maximum coverage of $1,000,00 – it is one of the most competitive prices on the market.

  • Eligibility regardless of pre-existing health conditions

The gift that just keeps giving. Besides affordable premiums, you are not required to go for any health checkups or underwriting for coverage up to $250,000. This is especially great for those with pre-existing health conditions, that are looking to be insured.

However, insurance is definitely not a one-size-fits-all solution. Find a policy that checks all your boxes so that you will have peace of mind and security for your future. Since now you know all about the coverage from the Aviva MINDEF/MHA group insurance voluntary scheme, make the best decision for your needs!

Getting Professional Advice before You Commit

Here at PolicyPal, it is our top priority to make sure you understand your options and select the best one for your budget and needs. Should you need advice or have any queries, feel free to leave your contact details and we’ll get back to you to arrange a free video consultation. 

How can we help?

 

Read More:
7 Best Term Life Insurance Plans in Singapore (2020)
Best Personal Accident Insurance in Singapore
What Should Your Financial Portfolio Look Like at Your Age?

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