facebookShould You Cancel Your Aviva MINDEF/MHA Group Insurance After You ORD?



Should You Cancel Your Aviva MINDEF/MHA Group Insurance After You ORD?

profileMing Feng

The quickest way to look at insurance is that everyone pays their premium which accumulates into a pool of money. This pool of money will then be used for anyone in the group that ends up having the need to claim for whatever the policy is intended for.

When it comes to insurance, getting the Aviva MINDEF/MHA Group Insurance is probably the first policy most Singaporean guys purchased for themselves.

A lot of us will go on to decide if we should cancel the policy after we ORD. We are not really sure if that is the right decision and did our little bit of research.

  • During your term of service since 1 July 2016, the MINDEF/ MHA Group insurance is provided for personnel serving their term of National Service.
  • After their ORD date, they have the option to continue coverage under the Voluntary Scheme.

The Voluntary scheme comprises of Group Term Life Insurance and Group Personal Accident. There are also a few available riders to choose from.

How Group Term Life Insurance And Group Personal Accident Work?

Group Term Life

The insurance pays for

  • all forms of death (except suicide within the first year of insurance coverage)
  • total and permanent disablement or permanent partial dismemberment due to illness or accident.
  • NSmen and their spouses to continue to be covered up to the age of 70, long after the NSman leaves employment with SAF, ORD or completes serving his NS liabilities.

Benefits Of Group Term Life Under Voluntary Scheme

  • 100% payout of the sum insured for Death and Total and Permanent Disability Benefit.
  • 100% up to $400,000 for Advance Payment Benefit in an event an Insured Person suffers from any diseases which may lead to death within the next 12 months.
  • $30 per day Hospital Cash Benefit from 11th to 30th day of hospital stay.

Coverage And Premium Rates of Group Term Life

Coverage Amount

Monthly Premium (S$) Member/ Affiliate Member/ Spouse/ Children

65 Years Old and Below66*67*68*69*70*

*For renewal only

source: Aviva

Group Personal Accident

Personal Accident provides financial help if you suffer an injury, disability or die from an accident.

Benefits Of Group Personal Accident Under Voluntary Scheme

  • 150% payout of coverage if Total and Permanent Disability is due to an accident.
  • Insured for simple fracture or fractures due to an accident.
  • Reimbursement of ambulance cost.
  • $10,000 of mobility aid upon Accidental Total and Permanent Disablement.
  • $10,000 of Home Rehabilitation Renovation Expenses.
  • $250 Accidental Hospital Recuperation Benefit.

All these are covered worldwide, 24/7.

Coverage And Premium Rates of Group Personal Accident

Coverage AmountMonthly Premiums (S$) Member/ Affiliate Member/ Spouse/ Children

Note: This is not a Medisave-approved policy and one cannot use Medisave to pay for premiums for this policy. The monthly premium rates exclude prevailing Government Service Tax (GST)

source: Aviva

Read also: As A Young Working Adult, What Insurance Should I Get?

A Quick Comparison

With this, we go for the lowest coverage of $100,000 for each.


  • A 27 years old
  • A non-smoker
  • Not looking at coverage for Critical Illness at the moment.

We will be looking at a premium of:

  • ($4.10 + $1) x 12 months = $61.20 yearly

Using Comparefirst, the cheapest premium for Term Insurance with coverage of $100,000 is close to 3 times more, at $184 per year. Of which provides less coverage and no Personal Accident coverage. Hence, the Aviva MINDEF/MHA Group Insurance might just be the most affordable term insurance in the market.

If one chooses the maximum coverage of $1,000,000 for Group Term Life Insurance, he is only looking at a monthly fee of $41. The lowest on Comparefirst for the same amount of coverage is at $55 per month.

Given its coverage, it is also the most value for money in the market.

Why Is The Premium So Affordable Compared To The Rest?

There are a few factors which might have resulted in the cheaper premium when compared to some of the policies out in the market.

  • The Aviva MINDEF/MHA Group Term Life Insurance does not cover Critical Illness unless you purchase a rider.
  • The policy is an initiative by the government to recognise the efforts of National Service. This is why part of the premium is subsidised by the government.
  • As mentioned in the first paragraph, this policy has one of the largest pool of people in Singapore, covering all NS men. This is probably why they are able to come out with such a competitive pricing.
  • It is ultimately a group insurance, which means in times of a mass disaster one may face difficulty claiming it.

Further Reading: Riders available for MINDEF/MHA Group Insurance

Rider – Living Care

With the lacking in critical illness coverage in the Aviva MINDEF/MHA Group Term Life Insurance, one can look at the rider available to further enhance his coverage.

The Living Care rider protects one against any possible financial burden against 37 common critical illnesses.

Benefits of Living Care

  • Adds on critical illness coverage for the term life insurance
  • Coverage against 37 common critical illness such as major cancers, stroke, kidney failure etc.
  • Get lump sum payment of coverage amount upon diagnosis of critical illness
  • Payout will not affect coverage amount of Group Term Life or Group Personal Accident

Coverage And Premium Rates of Living Care

Sum Insured (S$)

Age Group50K100K150K200K250K300K350K
1 - 201.202.403.604.806.007.208.40
21 - 251.402.804.205.607.008.409.80
26 - 302.
31 - 353.006.009.0012.0015.0018.0021.00
36 - 404.959.9014.8519.8024.7529.7034.65
41 - 457.2014.4021.6028.8036.0043.2050.40
46 - 5013.7527.5041.2555.0068.7582.5096.25
51 - 5521.0042.0063.0084.00105.00126.00147.00
56 - 6029.0058.0087.00116.00145.00174.00203.00
61 - 6540.3580.70121.05161.40201.75242.10282.45

Monthly premium excludes GST. This is not a Medisave-approved policy and one may not use Medisave to pay for the premiums of this policy.

Rider – Disability Income

In event of disability, this rider will give a monthly payout to the insured person.

Benefits of Disability Income

Provides monthly payout in event of disability.

  • Annual payout 50% of monthly basic salary multiplied by 12 in event of disability (up to maximum annual benefit of S$120,000).
  • Payout continues up to 70 years old of age.
  • Enjoy annual inflation adjustment of 3% for payout.

Premium Rates for Disability Income

Age next birthday
as of 1 July (MHA) or 1 October (MINDEF)
Monthly Premium
per S$10,000 of sum insured
Below 26S$4.13
26 - 30S$4.56
31 - 35S$4.93
36 - 40S$6.76
41 - 45S$10.66
46 - 50S$17.23
51 - 55S$23.07
56 - 60S$31.41
61 - 65S$32.46
66 - 70S$28.40

source: Aviva


Rider – Outpatient Medicare

This rider provides coverage for family’s consultation expenses.

Benefits of Outpatient Medicare

Benefits Limits Per YearPlan APlan B
Primary Care Benefit:General Practitioner (GP)

As charged

Non-panel GP


Co-payment per visit


Specialist CarePanel Specialist with referral

As charged

Non-Panel Specialist with referral


Co-payment per visit


Standard Diagnostic X-ray &
Laboratory Test

As charged

Local Emergency Outpatient Treatment


Co-payment per visit


Overseas Emergency Outpatient Treatment


Co-payment per visit


Annual LimitsS$1,000S$500

source: Aviva

Premium Rates for Outpatient Medicare

Age Next Birthday
as of 1 July (MHA) or 1 October (MINDEF) each year

Annual Premium

Plan APlan B
Under 12S$344S$240
12 - 55S$296S$208
56 - 70S$376S$260

source: Aviva


This group insurance also gives out rebates on premiums from time to time. This means that the cost is actually lower than what was stated.

Given the value for money of this plan, there is a high possibility that this policy will fit into your plan as a whole.

About Ming Feng
A stint in Bloomberg gifted me with a beer belly, which only grew larger when I moved on to become a Professional Trader. Now I turn caffeine into digestible finance-related content.
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