Best Whole Life Insurance Singapore 2021
Whole Life Insurance, as the name goes, is designed to provide you with coverage for life. There are many Whole Life Insurance plans in Singapore by many different Insurers out there. We have specially curated the best plans and compare them for you so you don’t have to do so.
What is a Whole Life Insurance Plan?
It is an Insurance protection plan that covers the insured for life. Most Whole Life plans today have a limited premium paying term and upon finishing it, your coverage is for life. Some Insurers have the option for you to pay the premium for life as well.
Although the basic feature of a Whole Life Insurance plan provides for death, you can get a more comprehensive coverage by customising the different Supplementary Benefits, or Riders, to suit your needs. Some riders include multiplier which multiplies your basic sum assured to a few times, as well as certain premium waiver upon Early Stage Critical Illness (CI). This sort of riders are particularly useful if you are paying the coverage for your child or spouse.
Whole Life Insurance pays out a lump sum in the event of Death, Total Permanent Disability (TPD), as well as providing a lifetime of protection for you on Early Stage CI Single Payouts and Multiple Claim Payouts for CI of all stages.
Why Do You Need A Whole Life Insurance Plan?
Do you want to have a shorter premium term (15, 20, 25 years) during your working years so you can stop fussing for premiums during your retirement years and still be covered for life? Or you may want the best of both worlds on having coverage for now when you still have the ability to earn and leaving an option that should no death or critical illnesses of any stage happening during this whole time, you have some cash value to rely on upon retirement age?
Are you looking at providing for Early Stage Critical Illness protection for life as you feel that may occur at a later stage in life? In these scenarios, Whole Life Insurance plans may be more suitable as it may even be lower in cost than spending the premium on a Stand-alone Early Stage CI coverage.
Limited Pay Premium Term
A limited premium term for a lifetime of coverage,
or even legacy planning.
Allows you to provide a lump sum to your family regardless if they are still depending on you financially throughout your life.
Ability to withdraw partially/fully on the cash value, or convert to annuity payouts.
Supplementary benefits can be customised to meet your exact needs and concerns, providing an all rounded coverage.
The Sum Assured is able to multiply to enhance the assured amount for Death, TPD and Early to Advance Stage CI.
3rd Party Protection
Premium Waiver of death and even Early Stage CI for payor - useful if you are getting this for your child
Whole Life VS Term Insurance, what are the differences?
Generally they are both protection coverage plans and growing wealth is not their main purpose. The absence of cash value in a term insurance is one primary difference. Only Whole Life Insurances provides for Surrender Value (albeit taking a much longer time to gain as compared to pure endowment plans) if the policy-holder decides to terminate it either fully or partially. This makes Whole Life coverage plans cost much more than Term Coverage plans. The Whole Life plan’s cash value can be cashed out as a lump sum or be converted into a retirement payout while keeping the sum assured.
Aviva MyWhole Life Plan III
Manulife Life Ready Plus
AXA Life Treasure
NTUC Star Assure
Tokio Marine Legacy LifeFlex
AIA Guaranteed Protect Plus II
Aviva MyWholeLife Plan III
Competitive premiums across all ages, able to convert to monthly income plan with reduced sum assured. Ability to include the popular MultiPay Critical Illness (CI) rider. Life Assured will continue to be covered under Multipay Critical Illness Cover II even if the base plan is terminated due to the death benefit being fully accelerated. Multiplier feature able to extend to 80 Age Next Birthday (ANB) where most insurers stop at age 70. Death and TPD coverage is for LIFE.
Manulife LifeReady Plus
Competitive premiums across all ages, offering further discount on good health. Early Stage Critical Illness coverage protects 125 illnesses and 18 Special Conditions. Sum assured Multiplier feature can be set to none. Waiver of premium term if you are the payor for 3rd party. Flexible premium term of even until age 99. Sum assured can go down to a low $25, 000.
Most Competitive Plan
China Taiping i-Secure (withdrawn)
Most competitive premium with the most comprehensive Critical Illness protection of 161 Conditions, with 12 special & 12 Juvenile conditions. Multiplier benefit is the longest and can be extended to LIFE, beating all the other insurers which ends at age 70 (85 for Aviva).
Get the Best Whole Life Insurance Plan in Singapore 2021
There are many Whole Life Insurance plans in the market. We have specially curated the best plans and compare them for you so you don't have to do so.
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Frequently Asked Questions
- Whole Life Insurance coverage plans have come a very long way. What used to be just Death, Terminal Illness and Total Permanent Disability coverage has now seen a wide variety of range of supplementary benefits to make the Whole Life Insurance an even more comprehensive coverage:
- Early Stage Critical Illness (Single Payout)
- Advance Stage Critical Illness (Single Payout)
- Multiple Pay Critical Illness
- Early to Advance – some insurers even have the feature to convert them into stand-alone Critical Illness plans
- Multiplier feature
- This feature allows you to multiply the Sum Assured (2 – 10 times) to a few times more than the original amount. You are essentially covered more for a lower price. Most insurers have this feature until age 70 with some exception Insurers until age 86 or even whole life.
- Critical Illness Premium Waiver
- Waives off premiums in the event of such CI diagnosis
- Total and Permanent Disability (TPD)
- Payor Premium Waiver for Child
- A form of premium protection, in the event of payor’s death or diagnosis upon Early Stage CI, premium for your child’s Whole Life plan will be waived off
Imagine you are looking at a coverage of $250, 000 for Death, TPD and Early Stage CI coverage. Anyone of those occurring and you would like a payout of $250, 000. However a high sum assured like that is going to be expensive. Thus, you can work around a few permutations, for example:
A sum assured of $50, 000 with 5 times multiplier ($250, 000) and a sum assured of $125, 000 with 2 times multiplier. Both provides $250, 000 of coverage until age 70 (most insurers at age 70, with certain insurers until age 86 or even life).
That being said, after the age of 70 (or when the multiplier ends), the payout will be basic sum assured ($50, 000 or $125, 000 in this case) and yield it garnered throughout the years.
So why would someone choose a lower Sum Assured and a higher Multiplier benefit? The main difference is that the one with $50, 000 sum assured is going to be cheaper than the sum assured of $125, 000, as the cash value is going to be higher for the $125, 000 one and the premium calculation is based on sum assured.
It ranges from Single Premium (1 time) to 5, 10, 15, 20 and 25 years. Certain Insurers allow you to pay up to age 99. This may make sense for people whom are advance in age. Mode of premiums are monthly, quarterly, half-annually and annually.
Depending on certain Insurers, they have a feature where you have the choice to convert their whole life plan into an annuity retirement plan. It allows you to enjoy a stable stream of income at a chosen stipulated age while at the same time not terminating the policy, with a reduced sum assured.
This is suitable when you find that the sum assured for death/CI coverage is not as concerning when your life commitments have been completed or dependants are now financially sustainable on their own now.
The Cash Value of a Whole Life Insurance policy is a pool of money that grows within it. Insurers will allocate some of the premiums that you pay into their underlying investment which can be assets and/or funds portfolios. This is managed by a fund manager either by the insurer or appointed. Having a Cash Value in a whole life plan is what makes the premium so much more expensive as compared to a term insurance.
Some believe that the cash value is not as attractive as having their own endowment or investment wealth growth instruments, leading a school of thought that is termed as “Buy Term Invest the Rest” (BTIR), where using the similar premium, you save on focusing life and critical illness with term insurance and growing your own wealth with investments/endowment.
Participating whole life insurance refers to the plan is being invested in Insurers’ participating fund. By doing so, Insurers share the profit of the returns of the investment also known as bonus, paid yearly, via the smoothing process:
Smoothing policy: Insurers generally try to avoid large fluctuations in the non-guaranteed bonuses from year to year by smoothing bonuses over time. For example, insurers may hold back some bonuses in the years when the fund has performed well. This is so that bonuses can be maintained when the fund performs poorly. (https://www.moneysense.gov.sg/articles/2018/10/participating-versus-non-participating-policies)
Once the bonus is declared, they are guaranteed and accumulated throughout the whole term. In a Whole Life Insurance, it can be accumulated for life, or age 99 which are some Insurers’ definition of whole life is.
To differentiate between participating and non-participating policies, have a look at the Policy Illustration and you will see under the Surrender Value (Cash Value upon surrendering) table, there is a Guaranteed and Non-Guaranteed portion, with 2 standard projections of 3.25% and 4. 75%. As insurers cannot guarantee market trends, as well as past performances are not an indicator of future outcomes, the closest thing is to show accurate reasonable projections like the 2 projections stated above.
Term Insurance on the other hand, is one common Non-Participating policy that has a definite payout amount under the specific coverage (Death, Early Stage CI, MultiPay CI etc) and does not participate in the profit of the participating fund and underlying assets.