Water is often stated as the substance that gives life.
Without it, life on this planet may never exist.
Similarly, term insurance is the H2O of life insurance.
Every life policy carries an element of term insurance within it.
Some like their water sweetened and carbonated. Others like them infused with coffee or tea.
Regardless of how you take it, plain water remains to be the lowest costing and healthiest choice.
Likewise, term insurance is the go-to choice when it comes to insuring yourself most economically.
“Buy term and invest the rest” is a popular method that millennials adopt when it comes to coverage.
In order to maximize your investment budget, keeping the term insurance cost low is a priority.
Term Insurance is a relatively simple product.
It pays out on death, upon terminal illness or disability.
Thus, it is simple to compare and get the best deal.
That is for you as an individual.
However, insurance companies offer sweeter deals to their corporate clients.
That is why some of you may be able to get good value term coverage as part of your employee benefit.
Thankfully for the rest of us, there are some memberships or clubs that offer us great Term Insurance deals.
Let’s find out about them.
1. AA Life Protector
If you have a drinking problem, do not mistake AA as Alcoholics Anonymous.
AA actually stands for Automobile Association.
Drivers who have an interest in motoring or wish to have roadside assistance 24/7, may sign up as AA members.
AA Singapore has partnered with Tokio Marine Life to provide additional benefit for its members.
You can buy the basic term cover or you may add hospital cash benefit or critical illness rider.
Hell, you can get all three bundled together !
For ease of comparison, we will refer only to the basic plan without any add-on.
A 30-year-old can buy $100k term cover at $105/year.
Check it out here.
2. MHA MINDEF Group Insurance.
We have covered this before.
The first 150k is free of charge for NS men or NSFs.
You may purchase additional coverage for yourself and even your dependents.
A 30-year-old can buy $100k term cover at $49.2/year.
Click here for more info.
3. NTUC Gift
NTUC Gift is a term policy exclusively for members of NTUC affiliated unions/association.
All members who are 16 to 65 years of age and have at least 6 months of continuous paid-up union/association membership can enjoy free coverage.
Spouses of members who are below the age of 65 are protected as well.
The sum assured is $40,000 for ordinary member and $80,000 for union leader.
This plan is administered by the NTUC Union itself.
In case you miss out, this is FREE.
For further proof that freebies do exist, please visit here.
4. NTUC LUV
Complaining that the $40k NTUC Gift is not enough?
Don’t you worry.
NTUC knows that Singaporeans’ lives are worth more than that.
Thus, it has tied up with NTUC Income (obviously) to provide LUV plan for its comrades.
If you are a member, you can get insurance for yourself, spouse or children.
And you get to enjoy a loyalty discount of 3-10% on your premium if you stay insured long enough.
There is also a hospital cash benefit of $100 per day.
Need dread disease cover?
You can select the Deluxe plan instead of the basic cover.
A 30-year-old can buy $100k term cover at $108/year.
Need some LUV? Right here.
5. SAFRA Essential Term / HomeTeamNS Insurance
Both of the above-mentioned schemes are administered by NTUC Income.
Therefore, they are pretty much the same.
The only difference lies in the premium rates.
Both pays an additional 25% if death is accidental.
In addition, NTUC Income pays a further monthly payout of 1% of the sum assured for the next 24 months if the Insured is disabled.
Partial but permanent disability is also compensated by stipulated percentages.
With the inception of MHA MINDEF insurance scheme, this plan seems to be non-competitive since it serves a similar demographic.
A 30-year-old SAFRA member can buy $100k term cover at $115/year.
HomeTeamNS member can get it at $12.70/month.
Take a closer look here for SAFRA and here for HomeTeamNS members.
How to take full advantage
Most of the premium are age-banded.
What it means for you is that as you progress to next age group, your premium will increase.
This is different from your regular term insurance where the payable amount is the same for the entire policy period.
It translates to competitive premium when young.
Pretty handy when you have a child to protect but cannot afford the princely bill of a whole life plan.
On the other hand, it is costly in your later years.
Luckily, the price increase may be matched by a decreasing need for term insurance.
Most people obtain term insurance for the sake of their dependents.
As your wealth grows over the years, it will diminish your term insurance dependence.
And when your children become financially self-reliant, you can consider terminating the policy or reducing your sum assured.
Final words of precaution.
Group term insurance goes hand in hand with Term-And-Invest methodology.
With a greater portion of your money into investment, you may potentially be able to self-insure if you have a sharp eye for returns.
However, term insurance is not the only protection you need.
A hospitalisation plan and critical illness policy are very much recommended.
Whatever you are making off your investment can be wiped out by an illness or injury.
So get yourself properly insured.
With these awesome deals, hopefully you can optimize your money for term coverage.
www.ClearlySurely.com aims to eradicate the knowledge gap between consumers and Life Insurance. Our Vision is that one day, every Man, Woman, and Child will be properly insured.