NTUC Income i-Term Review [2021]: Should you get this?
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NTUC Income i-Term Review: Should you get this?

Articles written are independent opinions, and are not affiliated/sponsored unless specifically mentioned.

ntuc income iterm review

The NTUC Income i-Term is a non-participating regular premium term insurance that covers death, total permanent disability before the age of 70 (TPD) and terminal illness (TI).

It offers guaranteed renewability and the option to enhance your coverage with optional riders.

Criteria

  • Minimum sum assured of 50k.
  • Coverage up to age 84.

 

Product Features

Policy terms

Flexible policy terms ranging from 5 to 35 years (In multiples of 5 years) or when the insured reaches 54, 64, or 74 years of age. The plan also offers guaranteed renewability with a 5-year policy term up till the age of 84.

Premium Payment Terms & Options

The NTUC Income i-Term is only available as a regular premium plan with level and guaranteed premiums throughout the policy term. The premium upon renewal will be based on the age on the next birthday of the insured.

Although there is no minimum premium payment, there is a minimum sum assured. Factors such as your age, gender, smoker or non-smoker, sum assured, policy, and premium duration term has an effect on your final premium amount.

Protection

The NTUC Income i-Term term insurance provides death, total permanent disability (TPD), and terminal illness (TI) coverage.

The policy does not provide coverage for suicide cases taking place within the first year from the cover start date.

The total premiums paid will be refunded without interest from the cover start date.

Death Benefit

Upon the death of the insured, the sum assured will be paid out. The policy terminates thereafter.

Terminal Illness (TI) Benefit

The TI benefit is payable upon the diagnosis of TI by a registered medical practitioner. The TI benefit will be paid up to the TI limit.

The maximum terminal illness benefit is SGD 500,000 (TI limit).

To qualify for the TI benefit, a conclusive diagnosis needs to be made with an illness that is expected to result in death within 12 months of the insured.

The diagnosis needs to be carried out and certified by a specialist and confirmed by a medical practitioner appointed by NTUC Income. Terminal illness with the presence of human immunodeficiency virus (HIV) infection does not qualify for the TI benefit.

TI benefit will reduce the basic sum assured due to it being an accelerated payment of the death benefit.

Total and Permanent Disability (TPD) Benefit

The TPD benefit is payable upon diagnosis of the policyholder with TPD (before the age of 70).

The policy terminates thereafter.

It offers the insured financial protection against total and permanent disability.

The maximum disability benefit inclusive of all other policies issued by all insurance companies is SGD 6,500,000 (not inclusive of bonuses).

TPD benefit will reduce the basic sum assured due to it being an accelerated payment of the death benefit.

To qualify for the TPD benefit payout, the life insured must meet the below requirements:

If the following is met before the insured is under the age of 65.

 

Disablement or physical loss as a result of an accident or illness continuously for 6 months, certified permanent by a medical practitioner appointed by NTUC Income leading to the inability to participate in any paid work for the rest of the person’s life.
If the following is met when the insured is above the age of 65 years old, but under 70 years old.

 

Disablement as a result of accident or illness continuously for 6 months, certified permanent by a medical practitioner appointed by NTUC Income leading to total physical loss or severe disability.

 

 

The definition of physical loss is:

  • The total and permanent loss of sight in both eyes.
  • Severance or inability to use any 2 limbs at or above the wrist or ankle.
  • The total and permanent loss of sight in 1 eye and any 1 limb at or above the wrist or ankle.

 

Additional Features and Benefits

Guaranteed Renewability Benefit

At the end of your selected coverage term, the i-Term will be automatically renewed with the same term and sum assured as previously up to the age of 84.

However, if the policyholder’s 84th birthday falls within the next contract term, policy renewal will be for a shorter term such that the renewal term will not exceed the insured’s 84th birthday.

Renewal premium rates will be based on the renewal term, sum assured, and attained age of the insured at renewal.

The policyholder is entitled to the guaranteed renewability benefit without additional medical evidence or insurability provided he or she fulfils the following:

  • The basic plan is still valid at the end of each coverage term and after every renewal.
  • The policyholder is below the age of 79 at their last birthday.
  • There were no claims made prior under the basic plan.

 

Add-on Riders

There are optional riders to provide enhancement to your coverage and provide additional protection. The following riders are offered:

Hospital CashAid Rider

The hospital CashAid Rider provides payouts in the event of hospitalisation, to aid in out-of-pocket expenses. Below are the benefits for Hospital CashAid Rider:

Hospital Cash Benefit

Receive the sum assured of the rider for each day of hospital stay (up to a maximum of 750 days for continuous stay in the same hospital).

Not applicable if the policyholder stays in a hospital before or within 30 days from the cover start date (except for accidents).

Additional Intensive Care Unit Benefit

Receive double the sum assured of the rider for each day of stay in a hospital’s intensive care unit.

Not applicable if the policyholder stays in a hospital before or within 30 days from the cover start date (except for accidents).

The Intensive Care Unit Benefit can be paid on top of Hospital Cash Benefit. However, if the Hospital Cash Benefit has been paid, up to a maximum of 750 days for the same stay in a hospital, the insured will not qualify for Additional Intensive Care Unit Benefit.

Major Impact Benefit

Receive 10 times the sum assured of the rider when the insured undergoes surgery or suffers from an infection (inclusive of future unknown diseases), and is required to stay in the ICU for a total of 5 days or more in one hospital admission.

This benefit has a payout limit of once per policy year.

The surgery, infection, and stay at ICU must be directly due to the same cause and verified as necessary medical treatment.

Not applicable if the policyholder stays in a hospital before or within 90 days from the cover start date (except for accidents).

The Major Impact Benefit can be paid on top of Hospital Cash Benefit and Intensive Care Unit Benefit.

Recovery Benefit

Receive an additional sum assured of the rider for each stay in the hospital.

Not applicable if the policyholder stays in a hospital before or within 30 days from the cover start date (except for accidents).

Only paid once for the same stay as the Hospital Cash Benefit Claim.

Guaranteed Insurability Option (GIO)

Option to purchase new riders to extend rider coverage without the need of a health assessment.

Essential Protect Rider

A lump sum payout is paid in the event of death, total and permanent disability (TPD before age 70), terminal illness or dread disease (except for angioplasty and other invasive treatment for coronary artery).

This is not applicable to major cancers, heart attacks, by-pass surgery, angioplasty, or severe coronary artery diseases diagnosed within 90 days of the start of the plan.

For angioplasty and other invasive treatment of coronary arteries, NTUC Income will pay a maximum of $25,000 from the rider sum assured.

This can only be paid once, and the amount assured for the rider will be lowered accordingly after the payout.

Total Protect Rider

When you are diagnosed with an early, intermediate, advanced stage specified dread disease (except angioplasty and other invasive treatment for coronary artery), you will qualify for the Total Protect Rider payout.

In addition, the rider offers Advanced Restoration Benefit, which offers additional coverage in case of stroke with permanent neurological impairment, major cancer, and heart attack of specified severity after early or intermediate stage disease claims

When payment is made, the rider benefit will terminate, except for the Advanced Restoration Benefit.

Not applicable if disease diagnosis takes place within 24 months after another diagnosis of early or intermediate dread diseases.

The insured has to be alive for at least 7 days from the date of diagnosis or medical procedure.

Payor Premium Waiver Rider

No future premium payments required for basic policies purchased for loved ones, if the policyholder passes on, becomes totally and permanently disabled (TPD before age 70).

Enhanced Payor Premium Waiver Rider

No future premium payments required for basic policies purchased for loved ones, if the policyholder passes on, becomes totally and permanently disabled (TPD before age 70), or are diagnosed with a dread disease (except angioplasty and other invasive treatment for coronary artery).

This is not applicable to major cancers, heart attacks, by-pass surgery, angioplasty, or severe coronary artery diseases diagnosed within 90 days of the start of the plan.

For angioplasty and other invasive treatment of coronary arteries, NTUC Income will pay a maximum of $25,000 from the rider sum assured. Once the payout has been made, the sum assured for the rider will be reduced accordingly.

Dread Disease Premium Waiver Rider

No future premium payments required for your basic policies if you are diagnosed with a dread disease (except angioplasty and other invasive treatment for coronary artery).

Not applicable if diagnosis of disease takes place within 90 days of the cover start date for major cancer, heart attack of specified severity and coronary artery by-pass surgery, angioplasty and serous coronary artery diseases.

NTUC Income will pay 10% of the rider sum assured, up to a maximum amount of $25,000 for angioplasty and other invasive treatment for coronary artery. This will only be paid once, and the sum assured for the rider will be reduced accordingly after the payout.

Dread Diseases

NTUC Income i-Term Policy’s Dread Disease coverage includes 32 dread diseases such as major cancers, terminal illness, blindness or coma).

My take on NTUC Income’s i-Term Term Insurance Plan

With reference to the table below, the NTUC Income i-Term term insurance is one of the most affordable and value for money term insurance plans.

NTUC Income i-Term China Taiping i-Protect Aviva MyProtector-Term Plan II AIA Secure Flexi Term Tokio Marine Term Assure (II) Manulife ManuProtect Term(II) PRUActive Term NTUC Term Life Solitaire
Annual Premium (SGD$) 938 498 535 536 545 637 685 733
Total Premium (SGD$) 32,830 19,920 21,400 21,440 21,800 25,480 27,400 29,320

Premiums are estimated based on a 30-year-old non-smoking male who opts to have $500K in insurance. For all premiums, the policy and premium term is 40 years with the exception of NTUC Income I-Term, which is for a premium and policy term of 35 years.

The NTUC Income i-Term term insurance embodies the following benefits:

  1. Offers flexibility with policy terms ranging from 5 to 35 years or until the policyholder is 54, 64, or 74 years of age.
  2. Offers the option for guaranteed renewal in 5-year policy terms until the age of 84.
  3. The availability of many optional riders safeguards against 32 dread diseases and offers Hospital CashAid.

 

However, the i-Term only provides coverage up to $499,999, so if you’re looking for higher coverage from NTUC Income, the Term Life Solitaire is a better option for you.

It is also useful to take note that the NTUC Income I-Term plan does not offer convertibility options to other insurance plans, which most of the other insurance companies offer.

Furthermore, NTUC Income’s i-Term is the most expensive term plan we’ve reviewed so far at $938 in annual premiums.

For instance, Aviva’s MyProtector Term II is the cheapest plan in the market that offers renewability, convertibility, level, and covers up to 99 years of age.

The Tokio Marine TM Assure is comparable to Aviva’s at only $10 more per year with riders for your children.

And if price is a concern, then the China Taiping i-Protect is definitely the cheapest while being pretty flexible as well.

Of course, whatever I mentioned here is just my opinion and shouldn’t be considered as advice. Different policies suit different individuals better and you should always talk to someone qualified.

Need some assistance in selecting the best term policies in Singapore suited for your needs?

Contact a licensed financial advisor. They will provide you with an unbiased view and opinion based on your needs to help you find the right term policy best suited for you.

References

Product Summary

https://www.income.com.sg/life-insurance/iterm

https://www.income.com.sg/life-insurance/iterm/hospital-cashaid-rider

Product Brochure

Disclaimer: Each article written obtained its information from reliable sources and should be purely used for informational purposes only. The information provided by Singapore Financial Planners and its affiliated parties is not meant to be construed as financial advice. Singapore Financial Planners shall not be held liable for any inaccuracies, mistakes, omissions, and losses incurred should you act upon any information listed on this website. We recommend readers to seek financial planning advice from qualified financial advisors. 

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