You’ve shed the uniform and made it out of NS! Congratulations are in order, but now a new set of challenges await you in civilian life. For those of you in your 20s, it’s a good idea to get your finances in order as soon as possible, especially with the rising cost of living.
You’ve probably heard about common financial planning tips such as tracking your expenses, building an emergency fund for rainy days, or investing to grow your wealth in the long term. But all these efforts will go to waste if something unfortunate happens to you, and your insurance policies aren’t as comprehensive as you imagined.
To ensure that they have adequate and appropriate coverage at a reasonable cost, the Ministry of Defence (Mindef) and Ministry of Home Affairs (MHA) provide all full-time national servicemen (NSFs) and operationally ready national servicemen (NSmen) with free Group Term Life and Group Personal Accident insurance cover while they are on official duties. This group insurance is underwritten by leading insurer Singlife with Aviva.
Ever wondered what "Lobang" Weiliang was like in NS? Watch the video below.
The good news is that NSmen like you can continue, and even beef up, this coverage when they are no longer in active full-time service by purchasing additional Group Term Life and Group Personal Accident coverage under what is known as the Voluntary Scheme. For Group Term Life, you can even extend your coverage to S$1 million for just S$1.371 a day. The Group Personal Accident policy allows you to purchase coverage of up to S$600,000.
And if you’re hospitalised due to an illness or accident, you can even receive a daily cash benefit of S$30 from the 11th day of your stay, for up to 30 continuous days. This cash can help to cover the cost of buying necessities during your hospital stay, or transportation home when you’re discharged. This benefit isn’t found in most life insurance plans, making it a valuable extra.
The premiums for these policies are fixed, which means that you pay the same amount upon renewal every year until you’re 652 for Group Term Life or 702 years old for Group Personal Accident. Even better, an insured member's spouse and children are also covered at the same rate as long as the NSman remains insured under this scheme.
Boost your coverage with riders
To ensure that you’ve covered all the bases, MINDEF & MHA Group Insurance plans come with a host of optional riders that you can add to the main plan at your convenience. A rider adds additional benefits to a policy on top of the main insurance plan. These riders can cover you for critical illnesses, disability income and even outpatient treatment expenses. As they are tied to the main insurance plan, riders cannot be purchased on their own.
The Living Care rider, for instance, provides additional coverage of up to S$350,000 against 37 critical illnesses, paid out in a lump sum upon diagnosis of the critical illness. The monthly premiums are based on your age; individuals aged 31 to 352 will pay S$3 per month for a S$50,000 coverage, while someone aged 36 to 452 will pay S$4.95 for a coverage of S$50,000.
There is also a rider that provides you with benefits for outpatient consultations and treatments. The Outpatient Medicare rider is made up of two plans: Plan A with an annual limit of S$1,000, and Plan B with an annual limit of S$500. The annual premiums for this rider range from S$208 to S$376.
Meanwhile, the Disability Income rider provides you with the security of regular income if you are no longer able to work due to disability, up to the age of 702. The annual coverage is based on 50 per cent of your monthly basic salary, multiplied by 12, up to a maximum annual benefit of S$120,000. You can be covered under this rider for as little as S$3.72 per month per S$10,000 annual coverage if you are under 26 years of age. The premiums increase as you become older.
If you’ve completed your full-time NS obligation and have yet to sign up for the MINDEF & MHA Group Insurance plans, it’s not too late. NSmen can still sign up for these Voluntary Schemes even after they have ORD-ed, but not after they reach the Statutory Age for NS Liability; which is 40 years for Non-Officers, or WOSEs (Warrant Officers, Specialists and Enlistees), and 50 years for Officers.
At a time in your life when your financial responsibilities are growing, the MINDEF & MHA Group Insurance plans with riders can give you the all-round protection you need and greater peace of mind for you and your family.
To find out more about MINDEF & MHA Group Insurance Scheme, click here.
In partnership with Singlife with Aviva.
- 1Premium shown is based on monthly rate (rounding off to the nearest cent) for an Insured Person, aged 65 and below at next birthday.
- 2Age next birthday (ANB)
- This article is published for general information only and does not have regard to the specific investment objectives, financial situation and particular needs of any specific person. You should read the Product Summary and seek advice from a financial adviser representative before making a commitment to purchase the product.
- Terms and conditions apply. This advertisement has not been reviewed by the Monetary Authority of Singapore. Protected up to specified limits by SDIC. Information is accurate as at August 25, 2022.