PK: SAF Group Term Life vs Term Protector

Have you always heard about Aviva SAF Group Term Life Insurance being one of the best around? In line with the recent discussion, I have done a practical comparison for an easy analysis. These are the findings…

Scenario:
30 Year Old, Non-Smoker, who wants to get covered for $1mil till Age 65

SAF GTL (To Age 65)
$1,536/yr
+ Premiums will be the same even if you enter the plan at a later age before 55
+ Good rates for smokers
+ Additional Features includes…
+ Pay-out of additional 20% of Sum Assured for TPD due to Illness
+ Pay-out of additional $25,000 for TPD due to Accident
+ Covers for Accidental Total & Permanent Dismemberment i.e. loss of specific body parts, for a % of Sum Assured according to Benefit Schedule
– Subjected to Group Risk Limitation (on Land/Sea/Air in a Single Conveyance)
– E.g. $20mil for Air Conveyance, i.e. you cannot have more than 20 person with a $1mil SAF GTL coverage each
– 0.5% of the above limit if claims are due to Acts of Terrorism, i.e. Group Risk Limit of $100,000

Term Protector (Term to Age 65)
+- $1,226/yr or $1,698/yr for Non-Smoker and Smoker respectively
+- Premiums will be adjusted for different entry age, for example, $922/yr or $2104/yr for an Age 20 or 40 respectively.
– Higher rates for smokers
– No additional features, but
+ No exclusion on causes of death, i.e. covers illness, accidental, war, acts of terrorism etc.

Conclusion:
If the features of the plans (whether SAF GTL or a Term Protector) can work out for your scenario/situation, it will be a good plan. However, for coverage beyond Age 65, for instance a Whole Life cover, you probably have to look at a different way to structure your Insurance Portfolio.

© Wee Khai
Wee Khai is an avid soccer player, who is also a finisher of 12 half-marathons and 3 full marathons.