Aviva MyLifeChoice

Aviva MyLifeChoice was launched in September 2011.
It's a new participating Whole Life Plan with flexibility to add on modules for TPD and Critical Illness.

It allows policyholders to benefit from:

1. An option to increase term life coverage at key life events (e.g. marriage, birth of new child) without evidence of good health.
2. Coverage up to 275% of the Basic Sum Assured.
3. Guaranteed higher lump sum payout upon claim (due to Minimum Protection Value).
4. Supplemental retirement fund by lump sum withdrawal from age of 65.
5. Optional Critical Illness and Total and Permanent Disability rider for coverage till age 99 and 70 next birthday, respectively.

The Minimum Protection Value is dependent on entry age as follows:
Entry Age (Age NB)             MPV Factor
 1- 12                                    275%
 13- 24                                  250%
 25- 29                                  220%
 30- 34                                  200%
 35- 39                                  170%
 40- 60                                  150%

However, this MPV payout is only applicable for a period of 20 years from policy inception or up to age 65 of the Insured whichever is earlier. If TPD and/or CI riders are included, the MPV applies to them as well.

On point 4 with regard to supplementing retirement income, this is promoted via the Advance Cash Withdrawal option from age 65 onwards. However, I find that if I do exercise the option to receive cash, the plan converts into an extended term insurance which covers me at the basic sum assured to age 99 with no participation in further bonuses. Instead, I'd rather do a partial withdrawal of bonuses only, and still allow the plan to participate in future bonus declarations.
 
Another observation is about the cash values. On the guaranteed cash values, MyLifeChoice does hold up to plans like NTUC Vivolife and TM Legacy in the later policy years (e.g. from year 20 onwards). However, in the early years of the policy from year 3 onwards, the guaranteed cash values of MyLifeChoice is rather low. Terminal bonus rates are decent which makes the total projected values attractive. The question is whether Aviva can deliver in future.
 
To round up, premium rates for this plan are competitive with other hot favourites from NTUC Income and Tokio Marine Life Insurance. Competition is heating up (and I hear Tokio Marine Life is spicing up its TM Legacy Plus pretty soon).