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Singlife with Aviva’s MyChoiceSaver Savings Plan Review

Last Updated on May 30, 2022 by Parentology

When it comes to savings plan, there are the flexible premiums and withdrawals type, as well as the rigid save for maturity only. Singlife with Aviva’s MyChoiceSaver belongs to the latter, with one word in mind for this plan: Discipline.

Be it the different kind of goals in life, for a child, it will be mainly for education (especially tertiary education), as well as when the child enters society, gets married or even their first home.

The Discipline aspect comes in the form of no cash benefit/ partial withdrawals from this plan, with the option of Secondary Life Insured: ability to transfer life assured, as well as the legacy aspect of having this plan until age 99.

Aviva boils is down to 3 simple steps:

  1. Decide on how much you’ll want as your savings goal
  2. Decide on when you want to reach your savings goal
  3. Decide on your preferred duration to pay for the premiums

Source: Aviva 

Features At a Glance for Singlife with Aviva’s MyChoiceSaver

Capital Guaranteed

With the current low interest rate market, having to guarantee on the capital that you put in is not what every insurer is offering. Upon maturity at the end of your policy term, you can be assured that the total premiums that you have put in all these years will be guaranteed. Riders charges are not applicable.

The maturity, as always, includes the guaranteed portion and non-guaranteed yield, at the end of the policy term.

Flexible Premium and Policy Term

This is what the plan is all about, to have a choice to suit your disciplined savings:

Premium Paying Term Available – 5, 10, 12, 15, 18, 20 or 25 years

Policy Term Available – 10 to 25 years or until age 99

Secondary Life Insured – Able to appoint a member of the family as a Secondary Life Insured to continue with the accumulation of the savings plan to grow and compound the yield interests.

Coverage on Death and Terminal Illness

Premium Interest Waiver – Main plan only waives of the interest for premiums to a maximum of 12 months upon involuntary unemployment and retrenchment.

Accidental Death – Additional payouts

Riders Available:

  • Easy Term Rider
  • Payer Waiver Rider
  • CI Premium Waiver

Guaranteed Issuance Option

  • No medical questionnaire/ check-ups needed

 

How Singlife with Aviva’s MyChoiceSaver Works

MyChoiceSaver How it Works 1

MyChoiceSaver How it Works 2
source: Aviva

 

Snapshot of your savings and returns

Your monthly savings budget

Actual premium per month (S$) Premium term    (in years) Policy term        (in years) Guaranteed maturity value     (also known as the Sum Assured)         (S$) Based on 4.25% p.a. illustrated investment rate of return (IIRR) Based on 3% p.a. IIRR
Non-guaranteed bonuses (S$) Total maturity benefit (S$) Total Maturity Yield Non-guaranteed bonuses         (S$) Total maturity benefit  (S$)

Total Maturity Yield

Around S$200

229.65 10 20 30,000 13,792 43,792 3.10% 7,308 37,308 2.02%

195.20

15 25 40,000 22,415 62,415 3.27% 11,707 51,707

2.20%

200.20

10 Up to 99 ANB* 45,000 148,989 193,989 3.92% 58,153 103,153 2.72%

199.15

20 Up to 99 ANB* 80,000 250,801 330,801 3.97% 100,910 180,910

2.72%

Around S$500

493.75 5 10 30,000 5,659 35,659 2.48% 2,892 32,892 1.39%
481.20 15 25 100,000 56,039 156,039 3.35% 29,270 129,270

2.28%

503.75

10 Up to 99 ANB* 115,000 380,751 495,751 3.95% 148,615 263,615 2.75%
496.25 20 Up to 99 ANB* 205,000 642,679 847,679 4.02% 258,582 463,582

2.78%

^ Based on male, 40 years old, non-smoker

Source: Singlife with Aviva

 

Premium Comparison for 10 & 15 Years Policy Term

Sum Assured $30,000.00 $30,000.00 $62,000.00
Premium Term 5 Years 10 Years 10 Years
Policy Term 10 Years 15 Years 15 Years
Break Even Year 14th Year 14th Year
END OF
POLICY
YEAR / AGE
Based on 4.25% Based on 4.25% Based on 4.25%
Surrender Value @ Year 10 $35,659.00 $27,696.00
Surrender Value @ Year 15 $38,613.00 $79,801.00
Surrender Value @ Year 20
Annual Premium $5,787.95 $2,861.60 $5,913.95

 

Premium Comparison for Until Age 99 (ANB)

Sum Assured $30,000.00 $30,000.00 $58,910.15
Premium Term 5 Years 10 Years 10 Years
Policy Term 99 ANB 99 ANB 99 ANB
Break Even Year 20th Year 25th Year 25th Year
END OF
POLICY
YEAR / AGE
Based on 4.25% Based on 4.25% Based on 4.25%
Surrender Value @ Year 10 $8,197.00 $7,617.00 $16,250.00
Surrender Value @ Year 15 $10,432.00 $9,687.00 $20,665.00
Surrender Value @ Year 20 $14,421.00 $13,275.00 $28,320.00
Annual Premium $2,728.50 $1,405.60 $2,998.55

 

What We Don’t Like About Singlife with Aviva’s MyChoiceSaver:

  • It is a plain endowment savings plan with no annual cash benefits nor flexibility of withdrawal.
  • Cash is only received on full surrender or upon maturity
  • Upon Retrenchment/Unemployed, only up to 12 months of interests are waived, not the best unemployed benefits out there

Singlife with Aviva MyChoiceSaver is Suitable if You:

  • Flexible Premium Terms
  • Low risk endowment instrument for fixed maturity payout
  • Ease of application, no medical underwriting
  • No fluctuation on premiums

It would however be less suitable if you would like:

  • High Payout that covers Death, TPD, Terminal Illness, Critical Illness of all stages including Early to intermediate to advance stage for a low premium.
  • Multiple Payout for CI across all stages including Early to intermediate to advance stage for a low premium.
  • High returns of more than 10%
  • Immediate Break Even on Capital

Conclusion for Singlife with Aviva’s MyChoiceSaver Review

As we can tell, Singlife with Aviva’s MyChoiceSaver is focusing on one aspect when it comes to saving: Discipline. The lack of cash benefits annually with the only way of accessing the cash is to do a full surrender or upon the plan’s maturity. We hope this plan review of the Singlife with Aviva MyChoiceSaver helps you in understanding the pros and cons as well as helping you decide if it meets your savings objectives.

The many different functions and features of a savings plan largely depends on what your concerns and needs are. When it comes to the suitability of for you and your child, it is always advised to have a look around and compare across the different competitive insurers.

To find the most suitably plan based on your concerns and needs, simply fill in the form below and our friendly partnered licensed FA advisor will get in touch with you. 

Based on your needs, a custom made solution will be adjusted only addressing your concern with no obligations nor hidden fees.

 

Find the most suitable coverage for you and your child today!

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