fML Reviews: Great Eastern Flexi Term and Flexi Living Term

Great Eastern Flexi Term and Flexi Living Term Review

Life insurance is a form of insurance policy which pays a sum of money upon the death of the insured person. It’s usually one of the first policies that a financial adviser recommends, since it takes care of your dependents if bad things happen to you. Life insurance used to be whole-life plans, i.e. it provides life-long protection. However, in light of changing consumer demands, term insurance emerged as an increasingly popular choice. Term plans, as opposed to whole-life ones, cover you only for a fixed period of time.

In this article, fundMyLife reviews Great Eastern’s term life products – Flexi Term and Flexi Living Term and explores their features. Note: this information is accurate as of June 2018.

What is it?

Flexi Term and Flexi Living Term are regular premium term life insurance. Both Flexi Term and Flexi Living Term have coverage for death, total and permanent disability (TPD), and terminal illness. The difference is that Flexi Living Term also includes additional cover for critical illnesses.

Notable features

#1 Flexibility to convert

You have the option to convert the plan into a whole life, endowment, or even investment-linked plan.

#2 Extended TPD coverage

A common coverage limit for term insurance is either 65 or 70 years old. With extended TPD  benefit, Flexi Term and Flexi Living Term can extend your coverage beyond that, until the age of 85 or the end of the policy term.

Insurance charges

To explore the insurance charges, fundMyLife decided to start with a few key assumptions:

  1. Applicant is 25 years old
  2. Sum assured is $200,000
  3. Cover until 45/55 years old

Annual premiums at a glance

Great Eastern Flexi Term and Flexi Living Term Premiums
The annual premium table for Flexi Term and Flexi Living Term for four different young adults’ profiles.

We constructed four different profiles, varying smoking status and length of cover. At first glance, we observe that Flexi Living Term costs relatively more than Flexi Term per year for all four profiles. This should not be surprising since Flexi Living Term covers critical illnesses as well.

In general, both Flexi Term and Flexi Living Term annual premium is quite affordable at a sum assured amount of $200,000.

Flexi Term Review

The plan is flexible, in more ways than one. Firstly, with a minimum of 6 years’ term, you can hang on to it as long as you want/need. Secondly, you have to option to convert this plan to a different one later in your life. This is good for those who just started out on their careers and do not have any dependents yet. The extended TPD coverage is a nice touch as well.

In a way, Flexi Living Term is like Flexi Term with an additional critical illness rider. However, the coverage is only for regular critical illness. This means you should consider another plan if you want coverage for early critical illnesses.

Speaking of riders – there are riders for these policies. As such, you can supplement this plan with riders that protect you in other ways. For example, personal accident and disability income. However, information is sparse with these riders so you’ll have to approach a financial adviser from Great Eastern for more details.

In addition, bear in mind that Flexi Term and Flexi Living Term are non-participating policies. You won’t be getting any cash accumulation, payouts, or even surrender value. As such, you should consider investing the rest of your money if you want to grow it at some point. If your budget allows it, that is.

Ask fundMyLife financial questions today!

And we have come to the end of our review for Great Eastern Flexi Term life insurance. We hope this review will help you make a better choice. That said, it really depends on what you need.

If you’re still unsure about what you need, why not head on over to fundMyLife and ask our pool of financial advisers? Alternatively, you can check out our curated pool of individual advisers and ask them questions directly.

Been doing lots of research, but not sure who to engage to take the final step? Look no further! fundMyLife connects you to credible and incredible financial advisers privately and anonymously, based on the financial planning questions that you ask. We aim to empower Singaporeans to make financial decisions confidently.

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