REVIEW – Aviva MyLifeIncome: 5th Year Break-Even Guaranteed

REVIEW - Aviva MyLifeIncome: 5th Year Break-Even Guaranteed
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Last Updated on by Tree of Wealth

Aviva’s MyLife Income plan is a sustainable, supplementary income plan that promises a lifetime of yearly payouts could help offset such periods of instability and give you emergency fund in case of a rainy day.

It breaks even at a short 5 years and continues to grow should you decide not to withdraw it. We also did a comparison with NTUC Income’s Gro Gen Saver below to showcase yet another flexible endowment that breaks-even fairly soon, albeit not as short as compared to Aviva’s MyLifeIncome.

Let’s have a look:

Features

  1. Flexible premium terms – Aviva MyLifeIncome offers you a lot of flexibility in your premium terms by offering terms of 5, 10, 15, 20 or 25 years. This can help you to avoid paying premium for the entirety of your lifetime or alternatively distribute your premiums evenly and spread them out. By offering this range of options, you have the option to choose the most ideal premium term that suits you.
  2. Changing Life Assured – Aviva MyLifeIncome offers the option of changing the life assured. Life assured refers to the person whose life is insured. Aviva MyLife Income allows you the flexibility of changing the life assured after the first policy year. This can help you transfer the insurance plan to your loved one, if you ever feel the need to do so. However, do note that the change of life assured is not allowed once the policyholder or the life assured dies.
  3. Principal guarantee – Aviva MyLifeIncome plan guarantees your principal on 15th policy year when the premium term is 5, 10 or 15 years, 20th policy year for policy with premium term of 20 years and 25th policy year for policy with premium term of 25 years.
  4. High Payouts – up to 6.2% of sum assured every year: How yearly income is calculated is based on 2.2% of Sum Assured and Cash Bonus (4% of Sum Assured)
  5. Flexible cash access- This policy also offers you flexibility in accessing cash as long as your policy accumulates cash value. This gives you the option of making a partial withdrawal from your policy to meet some emergency needs.
  6. Guaranteed Issuance- Aviva MyLifeIncome doesn’t require you to have a medical checkup nor fill in any questionnaires. This makes this plan quite convenient for you.

Riders

This policy comes with a couple of riders which you can access to increase your policy benefits. (all of these benefits assume you’re the policy holder/life assured)

  1. Easy Payer Premium Waiver –Waives your premium in the event of death, terminal illness or total and permanent disability of either of the two lives assured.
  2. EasyTerm –Offers you lump-sum cash payment of up to 5 times your basic plan’s annual premium in the event of your death, terminal illness or total and permanent disability.
  3. Cancer Premium Waiver –Waives your future premium in the event you’re diagnosed with major cancers.

Why it is suitable for you

  1. Flexible premium terms
  2. Flexibility to change the life assured
  3. High degree of liquidity provided by providing flexible cash access
  4. Offers many cash benefits such as life stage benefit

Why it might not be suitable for you

  1. High premium increases barrier to entry – With an annual premium of $8,200, this plan can be quite expensive for many Singaporean households. This plan might not be suitable for you if you don’t have a lot of disposable income or see the need of increased emergency funds for the future.

Head to Head Comparison: Aviva MyLife Income vs NTUC Gro Gen Saver

Insurer Aviva MyLife Income NTUC Gro Gen Saver
Premium term options Single Premium, 3, 5, 10, 15, 20 or 25 years

 

Single Premium, 5, 10, 15 or 20 years
Policy term Till Age 99 Till Age 120
PrincipalGuaranteed for Single Premium 5th year 10th year
Principal Guaranteed for Regular Premium 3 years – 5th year

5 years – 5th year

10 years – 10th year

15 years – 15th year

20 years – 20th year

25 years – 25th year

5 years – 13th year

10 years – 13th year

15 years – 13th year

20 years – 13th year

 

Premium Waiver upon TPD No Yes

 

Nomination of Secondary Life Assured No Yes
Cash Payout Yes, on Yearly Income Flexible to withdraw anytime

 

 

Insurer Aviva MyLife Income NTUC Gro Gen Saver
Premium $12,034.80 $12,035
Guaranteed @ Year 5 $60,966 $23,769
Guaranteed Yearly Payout $792 NA
@ 3.25% p.a. $1,404 NA
@ 4.75% p.a. $2,232 NA
Guaranteed @ Year 10 $65,224 $46,983
Guaranteed @ Year 13 $67,903 $63,605
Guaranteed @ Year 20 $74,518 $71,969
Guaranteed @ Year 25 $79,261 $78,468
Guaranteed @ Year 30 $84,003 $85,569

 

 

Premium Term Accumulation

(Years)

Minimum Annual Premium Minimum Monthly Premium
Single Premium 4 $35,000< NA
3 years 2 $12,000< $1100<
5 years 0 $8,000< $700<
10 years 0 $3,600< $300<
15 years 0 $2,000< $184<
20 years 0 $1,300< $110<
25 years 0 $940< $90<

 

 

Premium Term

@ 25,000 Sum Assured

Annual Premium

 

Guaranteed

 

@ 3.25% p.a.

 

@4.75% p.a.

 

Single Premium

 

$35,000<

 

550 975 1550
3 years

 

$12,000<

 

550 975 1550
5 years

 

$8,000<

 

550 975 1550
10 years

 

$3,600<

 

550 975 1550
15 years $2,000<

 

550 975 1550
20 years $1,300<

 

550 975 1550
25 years $940<

 

550 975 1550

 

Get Advice For Your Legacy Endowment

The Aviva MyLifeIncome is indeed an endowment that breaks-even on the 5th year. The shortest in the market in fact. We hope this in-depth review helps you in understanding the pros and cons of the plan, as well as aiding in meeting your endowment savings objectives. All endowment legacy plans have their own advantages and disadvantages and it is recommended that you choose one that is within your objectives and liquidity needs to ensure you get the best possible value.

Fill in the form below and our friendly licensed FA advisor will get in touch with you based on your needs.

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

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