Best Term Insurance Plans in Singapore 2023
Term insurance, as the name suggest, is a type of insurance plan that covers for a specified time and sum assured. They are much lower in premiums as compared to Whole Life Insurances and to those whom doesn’t want to depend on the participating fund returns, you may consider “BTIR”, Buying Term & Invest the Rest.
What Do You Mean by Term Insurance?
Term Insurances plans cover for a specific period of time and amount. They are particularly useful when you are getting married (or just got married), getting a new property (Mortgage Reducing Term), having a newborn or even just graduated from school. Certain Insurers also have a Guaranteed Insurability Option to increase coverage upon reaching the above mentioned milestones.
Upon death/TPD, term insurance will pay out a lump sum (usually higher than Whole Life Insurance due to cheaper premiums) within the specified period of time. If nothing happens within this term, the term coverage will end and there is no maturity value.
Why Do You Need Term Insurance?
They are usually considered for specific reasons and timeline. It can be used to increase your coverage because of a new born/dependant relying on you before they are financially sustainable. Or a Mortgage loan liability for a period of time where it may lead to detrimental expenses to your spouse in the event of your death.
Because of its cost effectiveness, Term Insurance is a very prudent way of providing financial stability, enhancing your coverage for different aspects of your life in the event of unfortunate events. To suit your specific needs, there are many comprehensive supplementary benefits (riders). Coupled with the right riders, they protect and replace your income to provide for your dependants in the event of your death, critical illnesses of all stages and disability.
Affordable Premiums
High Coverage for a low premium, they are suitable for all ages. Even for retirees that are starting to get themselves covered.
Comprehensive Coverage
Flexible Supplementary Benefits can be customised to suit your exact concerns.
Flexible Period Coverage
You can choose to decide on how long you want the coverage to last.
Term Insurance VS Whole Life Insurance - Which Should You Get?
The main difference is that there is no cash or surrender value upon termination/surrendering for Term Insurances. That being said, this is why when comparing to a Whole Life Insurance, the premiums are significantly lower in cost, for Term Insurances.
Each plan serves different purposes, Term Insurances focuses on specific periods of time and functions while offering very affordable premiums.
Singlife with Aviva
Singlife Elite Term
30% Lifetime Discount Now On
Coverage Term
5,10, 11 – 85 years or To Age 99
Early CI (Single Pay) Option
Yes
Multiple Pay CI Option
Yes
Promotion
30% Perpetual Discount
Etiqa
Essential Term Life Cover
35% Lifetime Discount Now On
Coverage Term
5,10, 11 – 85 years, To Age 99
Early CI (Single Pay) Option
Yes
Multiple Pay CI Option
No
Promotion
35% Perpetual Discount
AXA
Term Protector
40% Lifetime Discount Now On
Coverage Term
Renewable 5 – 30 years. To Age 50/55 Up To 100
Early CI (Single Pay) Option
Yes
Multiple Pay CI Option
Yes
Promotion
40% Perpetual Discount
HSBC Life
Term Protect Advantage
Coverage Term
To Age 90
Early CI (Single Pay) Option
No
Multiple Pay CI Option
No
Promotion
25% Off 1st Year premium discount
Tokio Marine
Term Assure II
Coverage Term
5, 10, 11 – 85 years
Early CI (Single Pay) Option
Yes
Multiple Pay CI Option
Yes
Promotion
30% Discount For 3 Years
China Taiping
i-Protect Term
Coverage Term
5, 10, 11 – 40 years. To Age 65/75/85
Early CI (Single Pay) Option
Yes
Multiple Pay CI Option
No
Promotion
25% 1st year premium discount
NTUC Income
iTerm
Coverage Term
10 – 40 years term & Up To Age 65, 75, 85 & 100
Early CI (Single Pay) Option
Yes
Multiple Pay CI Option
No
Promotion
No
China Life
Term Guardian
Coverage Term
5/ 20 years & Up To Age 65
Early CI (Single Pay) Option
No
Multiple Pay CI Option
No
Promotion
No
AIA
Secure Flexi Term
Coverage Term
5, 10, 20, 30 & Up To Age 65 & 75
Early CI (Single Pay) Option
No
Multiple Pay CI Option
No
Promotion
No
The Winner
5/5
Singlife Elite Term
The most priced for value Term Insurance in the market, as well as the most versatile plan with the ability to customise a wide range of supplementary benefits, including the popular MultiPay CI rider and flexible term period.
Runner-Up
4/5
Tokio Marine Term Assure II
Along with a very competitive premium, a uniqueness is the supplementary benefits that only Tokio Marine provides. For example, a disability income rider that pays out monthly in the event of losing the ability to perform 1 out of 6 ADLs.
Get the Best Term Insurance Plans in Singapore 2023
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Frequently Asked Questions
When it comes to life insurance, there are two types of coverage. They are are whole life insurance and term life insurance. So, you may be wondering, if they serve the same purpose, what are some key differences between the two? Which one should you get? Read more here: Term Life Insurance vs Whole Life Insurance: Which One Should You Get?
No, Term Insurances do not have cash value/surrender values. However certain Term Insurances do pay you the total premiums/sum assured back should you reach the stipulated age required.
To further customise and enhance your take and preference to make sure the coverage fits EXACTLY your concerns, here are the Supplementary/Rider Options:
- Early Stage Critical Illness
- Advance Stage Critical Illness
- Mutliple Payouts Critical Illness
- Total and Permanent Disability (TPD)
- Disability Income Payout
- Premium Waiver
Term insurance comes with a few features such as a guaranteed renewability, insurability and convertibility options. Find out below.
Depending on the term period that you are being covered, for example 5/10 years, this option allows you to renew your coverage upon the due year for another 5/10 years without having to go through medical check-ups and underwriting. Premiums will be subjected to your new entry age. This is suitable for people who wants shorter and lower cost coverage up front and decide in the years to come whether they want to extend the coverage or not.
Certain Insurers have this feature to allow you to convert the term coverage into a Whole Life or Savings/Endowment plan with Cash Value, providing further versatility should you change your mind or concerns in the upcoming years.
Similar but different from the Guaranteed Renewability Option, Guaranteed Insurability Option (GIO) means you will be able to get additional coverage at regular intervals or life events without providing any proof of health eligibility. These are usually up to a certain amount of Sum Assured. They are:
- Change in Marital Status
- Purchase of New Property
- New addition to family
- Upon Graduating
Term Insurance Coverage are flexible and versatile. They can fit into your needs for the length of coverage that you are looking at. The coverage term can range from a year to when you reach the age of 99.
Don’t worry! Most people get themselves covered until the age range of 65 to 70. This is set in lieu of retirement and most financial liabilities like mortgage loans or even commitments to dependants have now been fulfilled.
