Top Term Insurance Providers in Singapore

What is term insurance?

Term insurance is a type of life insurance that provides you with coverage over a certain period of time, essentially the term.

Term insurance products typically act purely as protection insurance coverage. It provides your family with financial income in the event of your death or a permanent disability during the term.

Is term insurance the same as whole life insurance?

Term and whole life insurance are fairly similar in the sense that they provide your loved ones with financial support should you pass on or suffer from a permanent disability. 

For both types of insurance plans, you also have the flexibility to decide on the amount of premiums that you can and are comfortable to pay. The premiums that you pay during the specific term indicated in the insurance also do not change during the entire premium term.

However, the difference between both term insurance and whole life insurance lies in the period of protection, cash value, and premium payment structure. 

Whole life insurance, as its name suggests, is meant to provide you with protection for your entire life or until the age 120, depending on the insurance plan. Besides offering just life insurance coverage, the policy also helps you to build up cash value. This means that you can also opt to surrender the insurance policy before your death and receive this cash value, which could act as your retirement fund. 

On the other hand, term insurance only covers you for a predefined term and pays a lump sum to your loved ones if you pass on during the term.

What is typically covered under term insurance?

Most term insurance provide coverage in the event of death, and total and permanent disability.

Depending on the insurer and the plan that you go for, some may also include coverage for major critical illnesses.

Can you attach riders on top of your term insurance?

Absolutely! Most insurance plans provide you with the flexibility to add on additional insurance coverage, also known as riders, to the existing plan. These riders typically provide additional coverage for situations such as early cancer or dependent coverage.

Where can I get a quotation for term insurance in Singapore?

If you are planning to purchase a term insurance plan for yourself as part of legacy planning, here are some of the top insurance providers in Singapore that offer term insurance plans.

Who should get term insurance?

Term insurance plans are ideal for those with family members that rely on you to support them financially or clear debts. 

You may also want to consider getting term insurance if you are approaching a major milestone in life such as getting married or purchasing a house. 

How much does a term insurance usually cost?

Given that term insurance offers you protection for a fixed period of time rather than whole life, the premiums are usually more affordable compared to whole life insurance. 

Do bear in mind that the premiums you pay ultimately depends on several factors as well: 

Health condition

If you have pre existing medical conditions, your premiums are likely to be higher as there is a higher chance of you evoking the term insurance plan.

Age

Older people typically pay higher premiums as opposed to younger people. 

Nature of occupation

If you are working in jobs that are deemed as dangerous, such as fireman or policeman, the riskier it will be to insure. As such, your premiums are likely to be more expensive.

Amount of coverage

The larger the amount you want for your insurance coverage, the higher the amount of premiums you have to pay.

Length of policy term

Depending on your premium term, this can have an impact on your premium amount. Generally, the longer your policy term, the more expensive your premium terms will be.

Riders

Once you decide to add certain riders to your term insurance, your premium amount will increase as well.

How much term insurance do I need?

The amount of coverage you want on your term insurance will directly impact your premium amounts. Ideally, you should be paying an amount that you are comfortable with while ensuring that the financial protection is sufficient for your loved ones’ needs. 

When deciding the amount of coverage you need, do factor in the following: 

• Outstanding debts such as mortgage loans
• Future education costs for your children
• Dependents, which includes children and parents
• Any other financial situations which your family may encounter and may need the lump sum payout

What are the various types of term insurance available?

There are other types of term insurance available besides term life insurance. Always do your due research or seek advice from your financial planner to determine a plan that best fits your lifestyle and financial needs.

Annual renewable term life insurance

This type of term life insurance renews on a year-by-year basis. The premiums that you pay are typically lower at the start of the premium term and will increase each year. The first few years of the premium amount often starts lower than that of a standard life insurance.

No medical exam term life insurance

A no medical exam term life insurance may be helpful if you or your family has a medical history but do not want to be excluded from coverage. This insurance type does not require you to go for a medical examination while ensuring that you are covered under the insurance plan.

Group term life insurance

Group term life insurance is typically offered as part of employees’ benefits in the workplace. The premium amount is usually subsidised, but employees have the option to top up or lower their coverage depending on their lifestyle. Most group term life insurance, however, cannot be transferred from employer to employer. If you were to switch companies, your insurance benefits may differ.

Mortgage protection insurance

A mortgage protection insurance is where the beneficiary of the insurance plan is tied to your mortgage provider, which could perhaps be a bank or financial institution. The term and benefit amount would usually be tied to your mortgage length.

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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