Vivolife : NTUC Income Limited Premium Insurance Policy

Sun, May 25, 2008

Insurance

A few people get to know me through my blog and have enquired about NTUC Income Vivolife Policy.

I will include here the most COMMON QUESTIONS asked about this limited premium, life insurance policy plan from NTUC Income.

1. What is vivolife?

vivolife is a whole life policy that provides high protection for death, total and permanent disability, and dread diseases.

It pays 125% of the sum assured for the first 15 years of coverage, and up to 300% of the sum assured for accidental death.

vivolife gives you more flexibility to meet your financial needs.

You can choose a limited payment term from 10, 15, 20 25 year, up to age 64 or age 84 last birthday.

2. What is the minimum sum assured?

The minimum sum assured is $10,000.

3. Do I get any bonus?

You will get a reversionary bonus each year.

This bonus is added to the policy and is payable at the time of a claim.

The Appointed Actuary decides on the bonus rates based on the financial results of the participating Life Insurance fund.

4. When is the benefit for dread disease payable?

Benefit for dread disease is paid when the following conditions are met:

  • Diagnosis of any 1 of the 30 dread diseases with proper medical evidence;
  • The illness need to meet the definition stated in the policy document. The illness is usually quite serious and requires prolonged medical attention;
  • For cancer, heart attack, coronary artery by-pass surgery and angioplasty, the diagnosis of illness or advice for surgery has to be more than 3 months from the date of policy issued.

5. When is the benefit for Total and Permanent Disability (TPD) payable?

The full sum assured and accumulated bonuses will be paid to the policyholder upon diagnosis of TPD of the policyholder before age 65,

TPD means:

• complete and continuous inability to engage in any business, occupation or perform any work of

any kind for remuneration or profit, or• loss of sight of both eyes; or• loss by complete severance of both limbs at or above the wrist or ankle; or

• loss of sight of one eye and the loss by complete severance of one limb at or above the wrist or ankle

6. Is there any waiting period for TPD?

The life insured needs to provide additional evidence to us that he has been totally & permanently disabled for a continuous period of at least 6 months.

Such evidence needs to be certified by a registered medical practitioner.

7. How does the Extended TPD rider applies for vivolife?

The current ETPD arrangement will apply i.e. while the main TPD benefit from vivolife will be paid in one lump sum, ETPD will commence payment only at the end of 5 years after the incidence of TPD (before the age of 65).

The ETPD rider will be discontinued after the premium payment term of vivolife.

Hence, it is advisable for the policyholder to purchase the ETPD rider under the Family Insurance Plan if the rider is meant to provide long term coverage.

8. How much is the Accidental Death Benefit?

In the event of death by accident, the total benefit payable will be up to 3 times sum assured plus bonus.

The amount of coverage is reduced for life insured when they are age 64 and above, or when they are involved restricted activities e.g. rock climbing.

Please refer to the policy contract for details.

9. How much is the Minimum Protection Value?

If death, dread disease or TPD were to occur in the first 15 years of coverage, the benefit payable is the higher of the sum assured plus bonuses, or the Minimum Protection Value which is 125% of the original sum assured.

10. When can I make a claim for the Retrenchment Waiver?

Claim for retrenchment waiver is not accepted if the policyholder is retrenched within 6 months from policy inception date.

If the policyholder is retrenched after the policy has been in forced for 6 months and remain unemployed for a continuous period of 3 months, premiums on this policy will be waived up to a maximum of 6 months.

Policyholder’s claim should be submitted within 6 months from the date of Retrenchment.

The Retrenchment Waiver payment starts from the date of retrenchment and may only be exercised once, regardless of the number of months that the premiums are waived.

11. Can the policyholder notify NTUC Income in advance if he knows that he will be retrenched soon?

Informing NTUC Income in advance does not affect the claim.

The PH can only claim for the retrenchment wavier when he is retrenched and remain involuntarily unemployed for a continuous period of 3 months.

12. Will the policy be lapsed if the policyholder cannot pay the premium, upon retrenchment (during waiting period)?

There is a grace period for non-payment, after which the policy will go into APL before it lapses.

We will revive the policy upon approval of the claim if it had lapsed.

13. Does the retrenchment waiver covers riders attached to vivolife?

No, the retrenchment waiver only waives premium for the main policy, it does not cover the riders.

14. Can the policyholder claim for retrenchment waiver for more than 1 policy?

Yes, as long as it is a vivolife policy.

The retrenchment waiver is NOT APPLICABLE to other types of policies bought by the policyholder.

15. Can the policyholder, who is a business owner, claim for retrenchment waiver when he winds up his business?

No, the retrenchment waiver only covers termination of service by your employer on grounds of redundancy or by reason of any reorganization of your employer’s profession, business, trade or work.

16. When can I exercise the Annuity Option?

The Annuity Option can be exercised upon attainment of age 60.

You can do a partial/full surrender to withdraw a lump sum for retirement, or purchase an annuity at prevailing rates.

Extra 5% of the cash value will be given if it is used to purchase an annuity with Income.

17. Is the annuity payout guaranteed?

No, the payout depends on the projected cash value of vivolife and the projected payout of the prevailing annuity plan at that point in time.

18. Do I need to go for a medical examination?

Generally, your application will be accepted without further underwriting or having to undergo medical examination if: a. you are below age 50b. you do not have any existing health condition

c. the sum assured application is $100,000 or lower

However, Income reserves the right to send insured for medical examination should the need arises.

19. If a rider e.g. Term Rider is attached to vivolife with 10 years fixed premium period, can the policyholder continue with the rider after the 10 years premium period?

The rider will be discontinued after the premium period.

Hence, it is advisable to attach the riders to other Income policies e.g. Family Insurance Plan designed to enable riders to be continued for longer term.

20. If a Hospital Benefit rider is attached to vivolife and there is a claim for dread diseases, can the policyholder continue with the Hospital Benefit rider?

The policy terminates once the dread disease benefit is paid.

If there is a Hospital Benefit Rider attached, it will be either terminated or transferred to another Income policy subject to approval.

Hence, it is advisable to attach the riders to other Income policies e.g. Family Insurance Plan designed to enable riders to be continued for longer term.

21. Is the policyholder required to pay policy fee if ph buys riders under Family Insurance Plan instead of vivolife?

Yes, the policyholder has to pay policy fee for the Family Insurance Plan.

The Family Insurance Plan is specially designed to enable policyholder provide long term coverage for the family and we will need to charge policy fee to administer this plan.

22. Can I use CPF to purchase this policy?

This policy can only be purchased using cash, because CPF only allows single premium policies.

 

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- who has written 427 posts on The Official Helmi Hakim Website.

A certified financial consultant, Helmi Hakim has won praise for his patience, perseverance and practicality when solving his clients' financial concerns. For more information on how you can manage your finances better, contact Helmi Hakim at 96520134.

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