Aviva MyProtector-Decreasing Term Plan Review

MyProtector-Decreasing Term Plan Review
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Last Updated on by Tree of Wealth

The Aviva MyProtector –  Decreasing is a Mortgage Reducing Term Insurance that is part of Aviva’s MyProtector Series of Term Insurance plans. The main purpose for this decreasing term insurance is for mortgage coverage protection and is catered to those who wants their insurance coverage to be a little more flexible as their commitments and liabilities get smaller each year.

Although mortgage protection is mentioned, other commitments like car loads or even children’s education fees can be taken into consideration for it. During this interim if you would like your coverage to reduce accordingly with a huge range of interest rate available, the Aviva MyProtector – Decreasing plan may suit you.

Our observation is that the premiums may not differ that much from the normal version and may make sense to get the normal level MyProtector Term instead.

Product Features and Benefits at a Glance

  • Has a sum assured that will decrease based on the calculated interest rate every year, over the whole policy term.
  • Has Interest Rate Options ranging of:  1%, 2%, 3%, 4%, 5%, 7% or 9%
  • Pays a reduced lump sum in the event of Death, TPD or Terminal Illness
  • Has the option to cover from 10 years to up to 99 years old with a one year interval in between. Very flexible.
  • Joint-Life application is available

Illustration For Aviva MyProtector – Decreasing Term

Joint-Lives example of a male at 35 years old and female at 30 years old. Both are non-smokers and interest rate selected is 3%.

Premiums are also rounded up to the nearest cent.

  Policy

Term

Sum Assured Daily Premium
MyProtector-Decreasing 30 years $350, 000

 

$1.55
Total Permanent Disability 30 years $350, 000

 

$0.24
Critical Illness Coverage (Advance Stage) 30 years $350, 000 $2.97
Total $4.76/ day

source: Aviva

What We Don’t Like About Aviva MyProtector-Decreasing Term Plan

While it is a mortgage reducing plan, there are no supplementary benefit options to customise the term plan:

  • No Guaranteed Issuance Option
  • No Renewable Option
  • No Convertible Option
  • No Indexation Option
  • No Early Critical Illness Coverage

Aviva MyProtector-Decreasing Term Plan is suitable if you would like:

  • Standard mortgage reducing term plan with a reputable insurer.
  • Flexible interest rates options.
  • Protection Coverage for Death, Total Permanent Disability and Critical Illness (Optional)
  • Coverage plan for Mortgage Loan and decreasing loan concerns
  • Protection for Joint-Lives with loved ones/spouse
  • Option of at least 10 years or up to age 99 flexible protection terms.

It would however be less suitable if:

  • You are looking for limited pay premium term and coverage for life.
  • You would like cash value in a protection plan.
  • You want to include Critical Illnesses of all stages coverage from Early to Advance Stage.
  • A Wealth Growth Endowment plan
  • Single premium, One-Time Premium Term
  • Cash Payouts regularly

Conclusion For Aviva MyProtector-Decreasing Term Plan

As with all Mortgage Reducing Term Insurance plans, the suitability of this plan for you will largely depend on your needs and expectations. There are many term insurance plans in the market with many strong Insurers. Which one suits you the most?

To find the most suitable coverage, simply fill in the form below and our friendly licensed FA advisor will get in touch with you. Based on your needs, a custom made solution will be adjusted only addressing your concerns.

No obligations, no hidden fees. All advice are of no charges.

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