• Daniel Lee

Things you didn't know about Aviva's MINDEF Group Insurance (v.s. private term insurance)

Updated: Oct 20, 2020

This article will help you address the question of whether you would be better off getting private term insurance or Aviva’s Mindef group insurance for your coverage needs.

A crash course on Aviva's Mindef Group Insurance


  • Cost is cheap for death and personal accident insurance coverage till the age of 65

  • Policies are accumulative and not accelerative (e.g. claim in CI coverage will not reduce the sum assured of death coverage)


  • Coverage only last till the earlier of when either your spouse reaches the age 70 or your children reaches the age 25 or get married

  • Early Critical Illness coverage is not comprehensive - only 10 conditions.

  • Low claim limits for early and late-stage critical illnesses – which may not be enough

  • Premiums for critical illness coverage are not leveled and increases with age

Maximum claim/coverage limits:

  • Death: $1,000,000

  • Personal accident: $600,000

  • Early-stage critical illness: $300,000

  • Late-stage critical illness: $350,000

Premium behavior

Mindef Group insurance vs Term life insurance

From the chart above, it is evident that:

  1. Mindef Group insurance is not a sustainable option after the age of 45

  2. Based on the total cost of policy from purchase age till age 65, purchasing private insurance will always be cheaper than mindef group insurance

Basis of comparison:

  • Male, non-smoker

  • Coverage duration from age 21 to 65

  • Coverage: Death: $1,000,000 & Late stage CI: $350,000

ECI and Personal Accident plans will be removed from consideration as they are not an apple-to-apple comparison.

Long Story Short

Aviva's Mindef Group Insurance is good for their death coverage given the cost payable and benefits receivable.

As to the use of Mindef Group Insurances for Early and Late-stage critical illness coverage, it is not beneficial to you as:

  1. Cost increases based on age band

  2. ECI coverage is not comprehensive

Personally, I would prefer the use of private term insurance as:

  1. Coverage is more comprehensive

  2. Cost is leveled and calculated based on the age of entry

  3. Flexibility in selecting your insurance duration – ability to tailor to your needs

Let’s not forget that we have yet to consider the option of whole-life insurances.

For analysis between Investment-Linked Products vs Whole-life vs Term-life insurance, you can read the article I wrote here.

If you are considering your options for your insurance planning, you can reach out to me to:

  1. Tailor an insurance portfolio that provides the coverage you need over-time

  2. Compare the insurances that are suitable based on your situation

  3. Restructure your insurance portfolio and make it more cost-efficient

Receive all the information you need with ease by working with me instead of spending weeks trying to figure things out on your own.

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Daniel is a Licensed Independent Financial Consultant with MAS and a certified Associate Wealth Planner that provides advice in the following areas:

  • for investment and portfolio management advice - find out more here

  • for insurance planning and portfolio optimization advice – find out more here

  • for retirement planning advice– find out more here



This article is meant to be the opinion of the author and is for information purposes only.

This article should not be seen as financial advice

This advertisement has not been reviewed by the Monetary Authority of Singapore