Top Life Insurance Providers in Singapore

There comes a time in life where you start managing your finances and a portion of this may involve insurance. Depending on your lifestyle and needs, there are many types of insurance policies available for your home, vehicle, health and life. Insurance policies not only offer financial protection and coverage, it also offers a peace of mind in the event of an emergency. 

What is covered under life insurance?

Life insurance policies provide a lump-sum payment or death benefit to beneficiaries in case of demise or permanent disability of the insured. As the coverage may vary between insurance plans and insurance providers, it is important to be aware of the terms and conditions covered under the plan.

Some common deaths cases covered are natural death and death due to accidents. There are plans that offer coverage for pre-existing illnesses as long as it is declared during your purchase. Death cases which are typically not covered by the life insurance plans are death under the influence of alcohol or drugs, murder due to criminal activity or suicide.

Top Life Insurance in Singapore

Here is a list of some of the top life insurance in Singapore:

How does a life insurance work

It is a form of financial safety net to protect you and your family against the risk of financial losses. There are various types of life insurance available in the market. The most common types of life insurance are term life and whole life. While the death benefits are fairly similar, there are some key differences between the two insurance plans. 

Term life insurance

For a premium amount, term insurance provides insurance protection over a fixed period of time without any savings or investment feature. It pays a lump sum in an event of death or total and permanent disability of the insured within the stipulated period. You can decide on the number of years your policy term covers before you purchase the plan.  

Some insurance firms have guaranteed renewals available for certain policy terms and after an expiry date. Typically the premium paid for term life insurance is more competitive than whole life insurance, but this may increase with age upon renewal. Unlike whole life insurance, the sum assured is fixed and remains the same throughout the term period. 

Whole life insurance

As the name suggests, whole life insurance offers you death or disability coverage for your entire lifetime or in some cases up to age 100 or 120. Some whole life insurance plans also provide a multiplier effect on the sum assured up till a certain age limit. 

Premiums typically start higher than term life insurance to build up cash value or surrender value. Although the cash value is lower than the assured sum, it provides the insured cash payout at the point of withdrawal or if they decide to surrender their policy. Most whole life insurance have surrender fees imposed during the first 10 to 15 years of the coverage. If you are in need for cash, you can consider making a partial withdrawal. But do note the amount will be deducted from the policy’s death benefit. 

Things to look out for before signing up for a life insurance policy

When choosing which life insurance to get – there are no hard and fast rules. The primary reason most people get life insurance is for protection and financial support to surviving beneficiaries in case of emergencies. However, life insurance plans may not make sense for everyone. 

Compare the different types of plans available in the market and seek advice from a trusted financial advisor before making a decision. Here are some key things to look out during your selection. 

Affordability

Buying a life insurance plan is a long term commitment. It is important to find one that meets your coverage requirements without placing additional financial burden. Before committing, consider situations where you may lose your source of income and if you are able to afford the insurance premium under such circumstances. Deferred payments may result in a late payment interest fee or worse, termination of the policy. 

Insurance premium payment schedules

You can decide how often to pay the insurance premium based on your budget. The most common options are on an annual or monthly basis. Depending on the insurance company, there may be discounts offered for annual payments.

Insurance claim process

Before the insurance company can process the payout, beneficiaries are required to file a claim and provide the necessary supporting documents within 30 days of the event. As the claims handling process varies from each insurance firm, do check on the procedures involved when filing for a claim. Read the terms and conditions of the coverage carefully to avoid situations where your claim is denied. You may also want to avoid insurance companies with a reputation for complicated claims handling.

Coverage duration

Assess your coverage needs before deciding on the duration of the insurance policy. This is dependent on a few factors such as your lifestyle, financials and most importantly, age. Online life insurance calculators are a quick way to estimate the recommended amount of insurance coverage based on your needs. 

Tips to lower your life insurance premium

Here are some tips to help you save on your life insurance premium cost:

Don’t wait to buy

At times, we are bombarded with other financial commitments until buying insurance becomes last in priority. However, insurance premiums do not wait for anyone. As the premium increases with age, it is advisable to start investing in a life insurance policy once you start earning. The sooner you buy, the lower the rates.

Take care of your health and weight

Obesity, smoking, problem drinking and history of medical issues can increase your premium. Premiums may even double or triple as insurers view these as potential risks to your life expectancy. Maintain a healthy lifestyle and pay a lesser premium. You don’t only save money, you also get other benefits like better immunity and better self-esteem.

Tax relief

You can claim for your annual premium paid for your life insurance policies if you meet certain conditions. To check on your eligibility, you can refer to the IRAS website on the conditions to qualify for the life insurance relief.

Best Term Life Insurance

Highlights:

An instance of low-cost schemes being retailed, may raise provisions upon major life upheavals, Fill-in accidental death payment, transferable claim Consider AIA secure flexi term: Selection of Currency (SGD/USD), Transferable to full life cover, disability coverage bonus Low-cost, conventional interval life coverage, Selection of scheme currency, assured insurability over extra amounts insured, assured transferability or re-contracting bonus

Choosing the Optimum term life insurance

Low-cost Upfront Paid term life Insurance

Term insurance delivers coverage over a set interval over time or may just foot over full amount have guaranteed upon Death, Terminal Disease with full or complete disability happening in full interval covered. Term life direct purchase insurance (DPI) refers to life insurance plan which allows users purchase of term life insurance scheme immediately from given insurer excluding taking on a channel like a financial counsellor.

Like a conventional interval life policy, Direct Purchase term life insurance will not pay cash for claims upon cessation of policy, alternatively were it terminated before maturity. The compensation is rather common, covering possibly to S$400,000 upon death, terminal disease (till year 85) or full complete disability (reaching year 65) insurance. One may alternatively buy added Critical Disease Rider. Further are mentioned certain DPI schemes taken from several top insurers within Singapore.

Usual monthly premiums covering term life DPI (male, non-smoker)

• FWD direct purchase term life insurance
• FWD DIRECT-term life
• DPI Term Life scheme which pays out substantial premiums to users who look for S$300,000-S$400,000 of insurance.

Premiums or Insurance Term Coverage

Month paid premiums apply only to Non-Smoking Males, with no accounting for a Critical Disease Rider. Charges could be subject to market rates. Correct as noted on 11/2020

Etiqa direct purchase term life insurance

Etiqa DPI term life

DPI term life scheme which could cover compensation for the lowest priced premiums paid to young non-smoking millennials, more so to females.

Premiums or Insurance coverage terms

Month on month premiums apply to non-smoking males with no accounting in the Critical Disease Rider. Charges could vary with market rates. Correct upon record on 11/2020

Great Eastern direct purchase term life insurance

Great Eastern great direct term 5YR/20YR/65

DPI term life scheme covering lowest cost cover up till year 65 scheme premiums covering senior citizens

Premiums & Coverage

Month on month premiums apply to non-smoking males which exclude accounting in  a Critical Illness Rider. Charges could vary according to varied market rates. Correct as recorded on 09/2020

SingLife Direct Purchase Term Life Insurance

SingaporeLife DPI Life Term Insurance

DPI Term Life plan that offers competitive premiums for older individuals looking for low to mid coverage

Premiums & Coverage

Month on month premiums apply to non-smoking males which do not do account in a Critical Illness rider. Prices may vary with market rates. Correct as recorded on 09/2020.

Term Life Insurance choices one may purchase online.

FWD, Etiqa or SingLife alternatively may allow one to buy old term life insurance policies online along with death or terminal illness provisions that extend over a S$400,000 DPI term. You could then get choices of buying either a full or complete disability with Critical Disease Rider in full.

FWD COVID-19 Insurance

100-day covered life scheme that covers death premiums over COVID-19

One-off premium: S$28.00

Terms & compensation

• COVID-19 Death Compensation S$50,000

Compensation Caps

• COVID-19 Death Compensation (frontliners) S$100,000

Policy Term 100 days

• ICU Daily cash premium (14 days) S$100/day

Post-Hospitalisation compensation S$800

FWD Term Life Plus Insurance

FWD Traditional Term Life

Term life scheme that pays up till S$1,500,000 of death and terminal illness insurance cover which you might purchase online

Promotions: “VLIFE15” for 20% off

Read our Full Review

Premiums & Coverage

Month on month Premiums apply to Non-Smoking Males, accounting in TPD Rider of 100% of their Death insurance with no accounting in of a Critical Illness rider. Charges vary according to market rates. Correct as of 08/2020

Etiqa eProtect Term Life Insurance

Death & TPD Coverage Plan Tenure Age 25 Age 35 Age 45

Editor’s Note:

While every precaution has been made to ensure the accuracy and fairness of this listing, we acknowledge that they may be inaccuracies. Therefore, we urge you to contact the service provider above for the correct information and/or contact us with the correct information.

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