Review – Aviva MyRetirementChoice II

Review - Aviva MyRetirementChoice II
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Last Updated on by Tree of Wealth

Replacing the original MyRetirementChoice which had been withdrawn on the 26th August 2020, the MyRetirementChoice II is a flexible endowment retirement plan. It comes with limited premium terms and is highly flexible, able to retire at any age coupled with enhancement and new features.

With no medical underwriting, Aviva’s MyRetirementChoice II also has death and terminal illness protection, waives off premiums in the event of Total and Permanent Disability (TPD) and additional payout should the Life Assured is not able to perform at least 2 of the 6 ADLs (Activities of Daily Living).

Key Features At a Glance

Key Features Coverage / Options
Choice of the Guaranteed Monthly Income (GMI) for your desired retirement lifestyle Minimum amount of GMI is either S$300 per month or is derived from the minimum annual premium of S$800 for the basic plan, whichever is higher.
Choice of Income Payout Period for the GMI From 5 to 35 years
Choice of premium payment term 5, 10, 15, 20 or 25 years
Choice of retirement age Flexible choice of Retirement Age.

 

How it is calculated:

Retirement age = entry age + premium payment term + Accumulation

Period (and must be 80 Age Next Birthday (ANB) or lower)

 

Accumulation Period is the period from the end of premium payment

term until the Policy Anniversary prior to the first payment of Monthly

Total Income.

Multiple Income Payout

options

  • Receive Guaranteed Monthly Income (GMI) + potential Monthly Cash Bonuses (MCB) during the Income Payout Period
  • Option to receive a lump sum bonus at your chosen retirement age, or convert it into Additional Monthly Income (AMI)
  • Choose to re-invest your monthly retirement income (GMI + MCB + AMI (if any)) at the prevailing non-guaranteed interest rate
(ENHANCED!) Protection against disabilities with the Care Income Benefit Additional Payouts under this benefit if 2 out of 6 Activities of Daily Living (ADL) during Income Payout Period:

 

Unable to perform any 2 out of 6 ADL during the Income Payout Period – 50% of the Guaranteed Monthly Income

 

Unable to perform at least 3 out of 6 ADL during the Income Payout Period – 100% of the Guaranteed Monthly Income

(NEW!) Fast Forward Option Choose to exercise the Care Income Benefit option in one lump sum instead of monthly income if the Life Assured is first diagnosed with Partial Disability during the Income Payout Period and it is the first valid Care Income Benefit claim.
Total and Permanent Disability Premium Waiver No need to pay premiums if you’re Totally and Permanently Disabled
Coverage for Death and Terminal Illness A lump-sum payout will be given in the event of Death or Terminal Illness
Guaranteed acceptance No health underwriting needed
Disability Benefit Waiver of all future premiums if policyholder is unable to do 2 out of 6 activities of daily living during payment

Source: Aviva

Interested to learn more?

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1. How Care Income Benefit Works

Care Income Benefit
source: Aviva

2. How Fast Forward Option Works

Aviva Fast Forward Option

source: AvivaTo further ensure and protect your Retirement, enhance your cover with these available riders:

EasyTerm

In the event of Death, Terminal Illness or Total and Permanent Disability, a lump-sum cash payout equivalent of up to 5 times the annual premium for your base plan will be paid out to cover living expenses for you or your loved ones.

Cancer Premium Waiver

Upon diagnosis of Advance Stage Cancer (Cancer Specific), all future premiums will be waived.

Critical Illness Premium Waiver

Upon diagnosis of any of the covered critical illnesses (Advance Stage), all future premiums will be waived, so you won’t have to worry about bills as your health gets back on track.

EasyPayer Premium Waiver

Future premiums will be waived in the event of Death, Terminal Illness or Total and Permanent Disability of the policyholder, so that your loved one’s retirement fund will continue to grow. This is for 3rd party policy holder and life assured planning.

Payer Critical Illness Premium Waiver

Future premiums will be waived if the policyholder is diagnosed with any of the covered critical illnesses, so that your loved ones’ retirement fund will be secured. This is for 3rd party policy holder and life assured planning.

Read More: Best Retirement Plans Singapore 2020 – The Ultimate Guide

Interested to learn more?

Fill in the form below and we will get back to you!

How MyRetirementChoice II works 1

How MyRetirementChoice II works 1
source: Aviva

How MyRetirementChoice II works 2

How MyRetirementChoice II works 2

source: Aviva

The Aviva MyRetirementChoice II is Suitable if You Want:

  • Low risk endowment instrument for guaranteed monthly payout
  • Prefers Guaranteed Monthly Income as well as guarantee on capital of total premiums paid at the end of the selected Accumulation period
  • A steady stream of guaranteed income (coupled with non guaranteed bonuses)
  • Ease of application, no medical underwriting
  • No fluctuation on premiums

 It would however be less suitable if you want:

  • High protection coverage
  • High liquidity
  • High risk and returns
  • High protection for Death, Terminal Illness, TPD, Early to Advance Stage Critical Illness
  • Whole life insurance coverage

This may not be the best option if you are looking for a good disability payout retirement plan. This is because it has the stringiest disability claim as compared to the other retirement plans from NTUC Income and Manulife.

It does not also allow you to pay a single premium, which means that it does not have an SRS option.

Conclusion

With this update MyRetirementChoice II, changes are constant in this endowment landscape.If you are retirement planning, let us do the homework and help you compare across the different retirement plans in the market to save you time.

Drop us an inquiry below and our professional experienced licensed FA advisor will get in touch with you shortly upon your request.

No obligations. No hidden fees and costs. Just professional advice.

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