Tuesday, May 16, 2017

GMGH Insurance Review 2017

I did an insurance review just last year in Oct 2016, but I recently made some changes so I thought I'd just share that with anyone who is interested.

Change 1: Addition of standalone Early CI / CI plan

In November, I was pondering about early CI coverage. My main concern is how that my only current coverage is a rider of a group insurance policy. After weighing the pros and cons, I decided to supplement my early CI coverage by taking this standalone plan. It has slightly more coverage and relaxed claiming terms, but the independent nature of the plan is what won me over.

I went through DIY insurance and I have already received my commission rebate. It was a very fuss-free experience. I highly recommend it to people that are independent and know what they want. 

Change 2: Changing IP Shield and upgrading rider

I'd say this is probably the biggest changed I've made to my personal finance situation this year. I made a very long blog post about it in March after thinking about it for a long time, and that really helped me sort out my thinking. 

After getting a letter from NTUC telling me that my premiums was increasing and I get very "meh" extra bonuses, I decided that it's time I shop around for another shield plan.

In the end, I decided to go with AXA because of several reasons. Firstly, I had a very good experience with AXA when I was buying my DIRECT DPI insurance in Jun 16. AXA does have good duration of pre and post coverage (180 and 365 days respectively). Finally, AXA is the only insurer to offer a no-pay rider option without the bells and whistles.

I contacted AXA through their website and I got assigned an agent. She helped me answer all my questions and we met up for 15 minutes to go through the documentation. Less than a month later, my application was approved and I have already received my policy documents.

Of course, with the additional early CI policy and also an "upgrade" from a co-pay rider to a no-pay rider, my premiums have gone up.


All-in, my annual insurance burden is $2413.50 a year, or approximately $200 a month. Cash outlay is lower at $2016.50 a year, or $168 a month. My premiums would stay the same until I'm 30, so I've a few more years before some of my premiums adjust upwards.The difference in premiums at this stage of life should be very minor.

Compared to anyone else paying about $200 per month (most people forget to count DPS and their Shield plans), I think I have pretty good coverage levels - excessive levels, in fact.

Let's be frank. There's no reason anyone like me should have a $1,150,000 death coverage. I have no dependents. This runs counter to my insurance philosophy. However, given that it is so unbelievably cheap, it's almost criminal not to max out my MHA policy.

I think this is going to be the last time I make any major changes to my insurance policies. With what I have now, I think it is sufficient for me unless circumstances in my life change quite drastically.

If anyone has any questions, or want to discuss about finer details, please feel free to comment and maybe we can have some good conversations there.

11 comments:

  1. Question as to your choice of IHPs - why AXA?

    It is far from being the cheapest (AXA: $361/year [+$322]; AIA: $391 [+$396]; Pru: $360 [+$411.30]; GE: $417/year [+$227]).

    ReplyDelete
    Replies
    1. Sorry let me rephrase - it is relatively cheap, but the better option (with rider included) is GE?

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    2. Hi Anon,

      GE is 120/180 pre/post, while AXA is 180/365. The longer coverage period is quite a good plus point to me.

      Delete
  2. Hi GMGH,
    Have you considered http://www2.aviva.com.sg/life-and-health/for-individuals/critical-illness/MyMultiPay.html ?

    SG Physiotherapist

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    Replies
    1. Hi SG Physiotherapist,

      I don't believe I saw that when I was getting my plan. However, I did go and read up about it after you linked it to me. Premiums are about 25% more expensive, but it does have the option to claim multiple times. I think that getting such an insurance which can claim multiple times is really individual specific, since certain individuals have family histories more prone to such things. If your family history is clean, you could even forgo CI and early CI altogether, or just get a token amount for peace of mind. At least, that's my thinking on this.

      Delete
    2. SG PhysiotherapistMay 19, 2017 at 10:21 PM

      Hi GMGH,

      Oh you managed to compare the premiums? Just wondering if you want to consider it if you were still in the free look period. (: thought that the premiums were similar to the normal early CI premiums. Did not do a comparison though.

      Cheers.

      Delete
  3. Whoa you lucky you served NS in SPF/SCDF compared to the really bo-liao SAF!

    Why not increase the CI coverage of your MHA Group Term? It'll be much cheaper, no?

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    Replies
    1. Hi Anon,

      No leh, I soldier also, haha. The MHA insurance has joined together with the previous Aviva insurance, so yes, even those who served in the SAF can get this coverage and rates.

      You are right, increasing my CI and early CI coverage through the MHA group plan is much much cheaper, but it is only for now. Every few years as I progress through the age brackets, such CI coverage will get exponentially more expensive. Now $100k CI+ ECI coverage is $145.20 annually, but at age 61, it is a mind blowing $1866 annually! My plan is level at $700 throughout. Until 50 I'll be "overpaying", but from then onwards I'll be "underpaying".

      Getting the CI and ECI coverage outside of the MHA Group plan gives me 2 benefits:
      1) independent plan that is not dependent on a group insurance
      2) level premiums (essentially more premiums now, to offset higher premiums in older age)

      From my calculations, the overall difference in premiums between engaging in either strategy is very slight, but I get the advantage of a standalone plan.

      Delete
  4. Hi GMGH,

    Can check with you for the MHA Group Term Life, do we need to attend a medical checkup for insured amount >$250k?

    Many thanks!

    ReplyDelete
    Replies
    1. Oh and to add, you really got more than decent insurance for someone below 30, kudos!

      Delete
    2. Hi Anon,

      When I increased my coverage from $100k (with the old SAF-Aviva plan) to $1 mil (new MHA plan), I didn't have to go for any medical check-up.

      From what I know, whether you are required to go for a medical check up usually depends on the age that you decide to upgrade coverage, and also your medical declarations.

      Heh, thanks thanks. I hope I don't have to make any more changes when I do my reviews in the future. No one ever likes all these admin processes!

      Delete

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