SAF/MINDEF Group Insurance Plan (A detailed analysis)

Last updated on December 18th, 2018 at 11:20 pm

In July 2016, the MINDEF/MHA Group Insurance replaced the current SAF Group Term Insurance. The insurer remains as AVIVA Ltd.

For simplicity of this article, let’s refer it as SAF Group insurance plan.

With this new grouping (and perhaps some backend negotiation), the insurance premium rates have been further lowered.

Many forumers believe it to be one of the most cost-effective insurance that you can purchase in the market.

I have done a throughout analysis on the plan for you to consider covering yourself and family members with this group plan.

Term Life premium is indeed cheap but only up to age65

At $4.10/month for $100,000, it’s really hard to beat.

However, consider cancelling the plan your age66 as premium jumps up by 20x.


In addition, $250,000 worth of sum assured can be bought without need to provide evidence of insurability.

I personally bought a $100,000 sum assured for myself.

In the event I am unwell, I will likely exercise increasing the coverage amount to $250,000.

Do note that no death benefit is payable under if it is caused by any pre-existing condition unless the Insured Person has already been insured continuously for 12 months under this policy.

IE, this is an exclusion clause for death due to pre-existing conditions within 12months of policy.


Critical illness (CI) coverage is capped at $350,000 only
If you are earning a decent income, how can this be sufficient for all your needs?
Will that maximum amount be able to cover all your liabilities and long term expenses.
Let’s run through an example that anyone can relate to.
– Loans for car or house of $100,000
– $2,000/mth expenses to cover over 25 years
That’s possibly $700,000 needed.
There is also the Living Care Plus Rider as a supplement for early CI coverage.
But have you seen the coverage scope?!?


If you look at the premium table, the Living Care Plus rate can be even cheaper than the Living Care rate.

This part is baffling to me.

Critical illness (CI) wordings for “exclusion” seem to be different from a personal plan CI

I have some further concerns. In the “Living Care rider” policy wordings for exclusions:

“No benefit shall be payable under this policy in respect of any CI DIRECTLY OR INDIRECTLY, WHOLLY OR PARTLY CASUED by or arising from or contributed to by ANY of the following:-

ANY condition or illness which is existing (whether or not the insured person is aware of the same) or the cause or the symptoms of which are existing or are evident or ANY condition or illness which the insured person is suffering….”



I’ve checked against those from my personal term plans which have more stringent underwriting.

The policy wordings for exclusions only state

“pre-existing conditions that is not communicated to us (unless the condition has been declared and accepted by us)”


How many have claimed for SAF CI coverage?

Will the policy wordings prevent claims when we need it in future?

Even if it is as claimable as a personal policy, will the loose underwriting result in excessive claims down the years?

Premium rates are non-guaranteed and with some claims from policy holders who were not healthy yet gotten coverage, the insurer AVIVA can easily raise premium rates for the whole group to compensate.



Critical illness (CI) coverage by the Living Care rider is likely expensive

As shown in the table below, the premiums are on an escalating scale.

It almost doubles at each age band from ages 31-35 onwards.

I pulled up MyMultipay CI plan which is also issued by AVIVA as a personal CI plan for comparison.

Premiums are at $94.60/mth for male age 31 covering $300,000 for Critical illness.


Firstly, it is cheaper on a average premium basis.

Secondly, it offers a much more comprehensive coverage than the Living Care rider with payouts for early critical illness and cancer relapses.

You may read our analysis on AVIVA MyMulitpay CI plan here.


More importantly policies are underwritten individually and I feel it gives greater certainty in premium stability.

  • Do note that even for personal CI plan, premiums can be level but non-guaranteed.


Group personal accident (PA) coverage is cheap


If you are on the roads frequently, I strongly suggest buying personal accident coverage.

The SAF Group PA plan covers for accidental death, TPD due to accident and Total&permanent dismemberment due to accident. Personal PA plans are more slightly expensive in comparison.

If you are active in sports, consider buying a personal PA plan as it is more holistic in coverage.

It will cover your medical treatment/TCM/scans/MC due to accidental injuries.

Click here to read more: BEST PERSONAL PA PLAN


Last words

This MINDEF plan is a form of group insurance. The rates are similar to group plans that are offered by big corporations. Hence, it is not rare and neither is it subsidised.

The pros and cons have been highlighted above.


You may only enrol yourself into the SAF Group TERM LIFE/LIVING CARE/PA plans only if you haven’t MR.

If you are still considering whether to buy and going to MR soon, I suggest you quickly purchase the minimal $100,000 sum assured (really doesn’t cost much) and look for financial planning advice.



The views and opinions expressed in this article are those of the author and do not represent the views of any other organisation.

Josh Tan Jian Liang (CHFC) Principal Author

REVIEWS: https://www.josh-tan/wall-of-reviews. COMPANY: Promiseland Independent Pte Ltd. EXPERIENCE: 11years.

Leave a Reply

Your email address will not be published. Required fields are marked *