Me & My Money Series (Sunday Times)

[hyom]

For maximum protection with minimum cash outlay, there are much cheaper insurance plans to cover death insurance. Personally, I recently received a letter from Aviva that gives me the option to upgrade my death coverage(SAF Group insurance) to $1m at a cost of $128 per month. I took up the offer within minutes with little hesitation. This plan is usually cheaper than $128 per month because it gives back cash rebate regularly at the discretion of Aviva.

hi hyom,
Great to see ur post on the Aviva Saf Group Term Insurance. I had posed this question before without an answer to it, and hope to learn from you since you've bought this policy. Question is: "Does this policy pay for death not due to natural causes, illness or accidents?" For e.g. If I had pissed someone of and he murdered me (for argument sake, the act of murder was planned), will this insurance policy pay out to my beneficiaries?
I asked because I felt it unusual for a policy's benefit for death to be ltd to only natural causes, illness, or accident. If I was gunned down I'd like to know my dependants still have something left!

This is a good question. Every policy has its own set of exclusions. Exclusions give you the reasons why similar insurance policies are priced differently. There is a section on exclusions for this policy provided in the link below;
http://www.aviva.com.sg/pdf/SAF_GTL_Brochure.pdf

Being murdered or gunned down is not one of the exclusions. So, your specific worries should not be a concern. Certain things to note regarding the exclusions;
- If a policy holder wants to commit suicide, he had better succeed. This is because he cannot make disability claims for the injuries as a result of the suicide.
- Don't be a womanizer and make sure your spouse is faithful as well. AIDS and venereal diseases are not covered
- Don't die like Ma Chi. He is the Ferrari driver who killed himself and innocent people for speeding. No pity on such a person anyway. Risky sports activities are not covered.
- Buy this policy while young and healthy. Death from pre-existing conditions is not covered.