Aviva MyCare: Should you get it? [2020 Review]
So you are thinking of upgrading your Eldershield to Aviva MyCare.
Is it worth it? Is it useful?
In this post, I’ll go through everything you need to know about Aviva Mycare — from the features, premium to the newest promotion in Singapore.
Let’s dive right in.
- 1. What is Aviva MyCare, and how does it work?
- 2. Premium Table
- 3. Aviva MyCare Features and Benefit
- 4. MyCare and MyCare Plus
- 5. Discounts & other perks
- 6. Verdict
Other Suggested Read:
How Basic Eldershield plan works
Before we start examining Aviva MyCare, we need to first understand how the basic Eldershield plan works. Because MyCare is an upgrade to the Eldershield.
Every Singaporean upon turning 40 years old will be enrolled into the basic Eldershield scheme.
There are two types of basic Eldershield coverage: Eldershield 300 and Eldershield 400. (some folks mistook this as Mycare 300 and Mycare 400, so this should help to clarify)
Eldershield 300 – This is the older version which was running from 2002 to 2007. If you are born in 1967 and earlier, you are under the Eldershield 300.
Eldershield 400 – This is the newer version that began from 2007, and it’s still running today. If you are born in 1968 and later, you are under the Eldershield 400.
So what’s the difference between Eldershield 300 and Eldershield 400?
Eldershield 300 – a disability insurance scheme that gives you $300 monthly payout for 5 years upon severe disability.
Eldershield 400 – a disability insurance scheme that gives you $400 monthly payout for 6 years upon severe disability.
Now let’s find out how Aviva MyCare works.
1. What is Aviva MyCare, and how does it work?
Aviva MyCare is an Eldershield supplement plan designed to improve the coverage of your basic Eldershield.
You may have realized that $300 or even $400 per month under the basic scheme is insufficient.
According to TODAYonline, the average Singaporean needs about $2,150 per month for long-term care expenses.
And this amount is even before factoring in the average inflation rate of 3%.
So by the time we need long-term care decades later, the cost for severe disability would have massively increased!
So now, do you think $300 or $400 per month is sufficient for you?
If not, that’s where Aviva Mycare comes into play.
It increases your monthly payout from $600 up to $5,000 (depending on how much you need).
And lengthens the payout duration from 6 years to Lifetime. (very useful since our life expectancy is ever increasing)
2. Aviva MyCare premium
Now, you may be wondering…
$5,000 in monthly payout Lifetime coverage? The premium must be sky-high!
Well, if you opt for $5,000 per month in payouts, be prepared to pay a couple of hundreds a month in premiums.
The premium amount is based on many factors: your desired payout amount, age, gender, medical conditions and more.
Check out this premium table from Aviva Ltd to find out your payout and premium.
3. Notable Features & Benefit
Apart from the increase in monthly payout and duration, here are 7 benefits that Aviva MyCare provides that the basic Eldershield don’t:
a. Easier Claim Eligibility (MyCare Plus)
The standard claim definition for severe disability is the inability to perform 3 out of 6 activities of daily living (ADL).
But what if a person becomes disabled but not “severe” enough to fulfill the 3 out of 6 ADL definition?
He/ she probably can’t work anymore and require help as well.
Aviva MyCare Plus came out with the 2 out of 6 ADL option, so that a person can make a claim by just fufilling 2 criteras instead of 3.
b. Premium Term Flexibility
The basic Eldershield has only one option for the premium term — pay until age 66.
With Aviva’s MyCare, Singaporeans can choose to either pay until age 66 or Lifetime.
“Huh? Who would want to pay for life? Of course the shorter the better!”
Well, not necessarily the case. It depends on how you look at it.
Here are 3 reasons why a longer premium term may be better:
i) Pay the premium with just your Medisave Interest–
Since you are stretching out the duration, the annual premium per year will be lower. And more likely to be paid for just by using your Medisave interest.
ii) Higher Monthly Benefit
Same concept as the above. Since your annual premium is lower, you can now bump it up and get a higher monthly benefit. (making full use of the CPF cap limit of $600 for eldershield upgrades)
iii) Premium waiver upon claim
Once a claim is made, all future premiums will be waived. E.g, if a person claims at age 60, the remaining premiums will not need to be paid. In this scenario, a longer premium term will make sense.
c. Flexible Payout Amount
You can choose any amount between $600 to $5,000 per month in disability income.
Depending on your needs.
d. Lump-sum Cash upon Claim.
At the onset of severe disability, there will be several one-off expenses to pay for (i.e. home modifications and equipments).
Some of them can’t be claimed with your Medisave.
The lump-sum cash gives you 3X your monthly disability income to help pay for such expenses.
e. Rehabilitation benefit – get paid even when you get better
What if you recover slightly from severe disability and can now perform 2 out of 6 ADL instead of the original 3 out of 6 ADL?
Under the basic Eldershield, the monthly benefit will stop.
But the problem still remains…
You can’t work and still need help.
So with the rehabilitation benefit, 50% of the monthly payout will still be given to support the patient.
f. Money for your dependant’s care
It’s going to be tough if you become disabled and your children are still schooling.
To give you an additional layer of support, Aviva MyCare will provide an extra $200 per month up to 36 months. (child is aged 21 years and below)
g. Death benefit
Get 3X last drawn monthly disability income to help with any final expenses.
4. MyCare vs MyCare Plus
What’s the main difference that you need to know?
MyCare – pays out upon hitting 3 out of 6 ADL
MyCare Plus – pays out upon hitting 2 out of 6 ADL
So obviously MyCare Plus will cost more.
I looked into the premium tables and found that on average, MyCare plus is 25% more expensive.
Then, which is better?
It depends on you.
Do you prefer an easier to claim definition and don’t mind paying more? If your answer is yes, then Aviva MyCare Plus is a better choice.
But if you wish to go with the standard claim definition and pay lesser, then choose Aviva MyCare.
5. Discount + Other Perks
To help you get started with better coverage for yourself and your family, here’s what Aviva Ltd provide:
1) $100 discount voucher
If you sign up for either MyCare or MyCare Plus.
2) Aviva Privilege Card
(only for MyCare & MyCare Plus policyholders) –
Get discounts on special health and wellness programmes such as basic and full health screening. See the full list here.
So after going through everything MyCare has to offer, it’s time to ask ourselves, Is it worth it?
Four simple reasons:
- Secure our future with higher coverage
- Pay with Medisave. And often with just the interest earned every year.
- Make a Claim in Cash — Get up to $1,600 per month with Medisave payment.
- Additional 7 Benefits as seen above + Privilege card to get us cheap health screenings every year.
(If you want to see how Ntuc, Aviva Ltd and Great Eastern fare against each other in terms of their Eldershield upgrade plans, check out this ultimate comparison guide)
Contact Us – (and get a FREE $10 voucher)
Upgrade through us and receive a FREE $10 NTUC Voucher (while stock lasts) 👇
And feel free to send any questions over 🙂