SAF Group Term Insurance

One of my clients is interested to get SAF Group Term Insurance and ask me to do a comparison.

This is what I found:-

Planning scenario:-

• Age Next Birthday: 25/ Male/ Non-smoker
  
• Protection required: S$300k Death/TPD/Critical illness
• Period of protection required: til age 65

I picked two other insurers (One is a standard no-frills term plan and the other a natural premium plan, simply named Company A and B) to compare with SAF Group Term Insurance Plan.

1) For SAF Group Term Insurance plan:
S$300k D/TPD/C.I protection coverage from now til age 65 (max):
Total cost is like this:
Death/ TPD: $18,892.80
Critical illness rider: S$68,310
Total cost: S$87,202.80

2) Company A's no-frills term plan:
S$300k D/TPD/C.I protection coverage from now til age 65:
S$121 per mth
Total til age 65: S$59,532
**updated 20Aug2008: S$55,800 **

3) Company B's natural-life premium plan:
S$300k D/TPD/C.I protection coverage from now til age 65:
Total til age 65: S$128,283

Conclusion: Company A's no-frills term plan is the best value for S$300k D/TPD/C.I cover til age 65

2) On the other hand, I calculate a shorter-term, say 10 years $300k coverage based on the same 3 insurers above:

SAF Group Term Insurance: S$8,208
Company A: S$7,843.20
Company B: S$6,031

Conclusion: Company B's natural-life premium plan is best value for S$300k D/TPD/C.I cover for a short period of 10-yr protection.

If you like to know what is the cost of your SAF Group Term Insurance plan from now til age 65, please email your birthdate and protection requirements to waynekohwg@gmail.com (Please indicate "W.I.I.N" in subject heading) and get a an alternative costing/plan to SAF Group Term Insurance. Note that the alternative costing/plan may or may not be more cost effective than SAF's.

Another "national service" to all without obligation. :-)
The first "national service" was the Shield Plan calculation.