[caption id="attachment_2906" align="alignright" width="182" caption="Photo by TheBusyBrain"][/caption]
It is important that we look into our coverage at every stage of our life. We can look into a few options ranging from Whole Life, Term to Group term plans. Each plans have their merits but the lowest cost among the above 3 are generally "Group Term Insurance".
Group insurance is a plan which individual employees or members are included under one 'master policy' owned by their employers or organization such as Unions and Clubs. A group insurance plan has many contributors of different ages and sex and hence able to provides more coverage at a lower cost per participant. Individual members of a group insurance plan will then receive an insurance certificate to prove their eligibility for benefits.
I had recently increased my coverage in the SAF Group term as I do not like the idea that I must have a membership to something before I can get my group insurance. I like to share very briefly my research findings on the 4 group insurance schemes that I'd done recently.
Out of the 4 Group Term Plans, 3 of them are offered by NTUC Income
1) POGIS - Public Officer Group Insurance Scheme (NTUC Income)
* This scheme is specially arranged by the Public Service Division and NTUC Income to provide coverage for employee of Government Ministries or Statutory Boards.
* It provides coverage for death and disability with an option to cover 30 critical illnesses.
* There are two plan types under POGIS namely the POGIS Basic and POGIS Basic Plus. The Plus plan provides coverage after retirement from the public service up to age 65.
* For age below 45, a $200k death cover and $100k CI cover cost you only $21/month.
* For age between 56 to 60, the same cover shall cost you $103.50/month.
My comments:
* You need not pay for any monthly or annual membership fee for this plan. You are eligible as long as you remains in service.
* The average cost of a $200k Death and $100k CI POGIS cover based on age 31 to 65 is only $61/mth and $67.50/mth for the Plus plan.
* The con of POGIS is that the risk of losing this coverage is the highest as leaving Statutory Board or Government Ministry like resignation or retrenchment means that your cover will cease at the same time. Read more...