Written by Chew Jing Xuan
For those who own the NTUC membership card, did you know that being a NTUC member entitles you to beyond just supermarket perks? One of the many benefits would be life insurance with NTUC GIFT- a group term life insurance that NTUC members are entitled to when they join the union. Group insurance are plans that are usually subscribed by employers or group administrator to provide some basic coverage for their employees or members. Around 15% of Singapore’s population are union members – there’s a chance that you are one too if you’re reading this.
What is NTUC GIFT?
NTUC GIFT is a group term life insurance that covers for members of NTUC affiliated unions/associations. It provides coverage for death and total/partial permanent disability. Members are automatically covered if they fulfill these criteria:
- Are 16 years old and above and below 65 years old
- Have at least 6 months of continuous paid-up union/association membership.
For NTUC GIFT, there is no certificate of insurance as it is a group insurance policy and NTUC is the master policyholder.
#1 Extension of coverage is available after 65 years old
For members who are 65 years old and above are able to opt-in for GIFT Extension to enjoy extended coverage, if they still fulfil the membership tenure criteria. The extension requests are subjected to approval, as well as a token fee of $1-$3 per annum (but this token fee has been waived until 30 April 2022).
#2 Spouses of members are covered as well
NTUC GIFT also covers for members’ spouses against death and total/partial permanent disability, as long as they are between 16 and 65 years old and subject to members meeting the eligibility criteria. Members’ spouses are also eligible for GIFT Extension under the same eligibility criteria as the member.
#3 Union leaders are eligible for higher coverage
Union/ Association leaders are also eligible for double the coverage if they are:
- Affiliated to NTUC AND
- Registered under the Trade Unions Act or Societies Act.
Premium payment and payout
The premium for NTUC GIFT is fully covered by NTUC, with co-payment from the affiliated unions/ associations. In other words, as long as you continue paying for your NTUC membership fee, which is $117 per annum ($9 per month for Jan-Nov + $18 for Dec), you are able to enjoy this death and TPD coverage (among other benefits, of course).
Payouts for Death/TPD
With a nominal membership fee that entitles members to a multitude of benefits, NTUC GIFT serves as an extremely affordable basic life insurance for many Singaporeans.
However, there are certain things we need to take note of the policy as well. Firstly, the payout benefits is unlikely to be sufficient coverage for most people. As such, it can only serve as a short-term financial aid for the family.
Is the group insurance worth it? Let’s consider the following scenario. A union member of 10 years encounters an accident, and either dies or experiences TPD. His payout is $40,000, which is 34x of the membership fee he paid. Regular insurance plans have a 90-120x of the premiums paid for varying levels of sum assured, albeit the premiums cost more.
In addition, the policy only covers up to age 65, or age 75 if the GIFT Extension is opted. If one is to rely solely on this policy, there would be a protection gap left after 75 years old. Hence, it is essential that members boost their life protection with other policies, while NTUC GIFT can be a supplement to the other policies.
For more details, head over to NTUC GIFT Brochure to find out more.
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And we have come to the end of our review for NTUC GIFT. We hope this review will help you make a better choice.
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