7 Best Term Life Insurance Plans in Singapore (2020)

Life insurance — no one likes to talk or think about it, but it’s just one of those must-haves once you become a responsible adult.

The main reason to get life insurance is to provide for your loved ones after you’re unable to support them anymore. The insurer provides them a payout in the event of your death, total & permanent disability (TPD), or terminal illness.

As the name suggests, term life insurance covers these events only for a specific term (i.e. a set number of years or up to a certain age). 

 

7 best term life insurance plans in Singapore (2020)

Almost every insurer offers a term life insurance plan — or multiple plans! It can be very tough to choose the right product. Here are PolicyPal’s top picks for term life insurance plans in Singapore:

Term life insurance 

Policy terms 

Highlights

Aviva MyProtector Term Plan II

5 years up to age 85

Affordable premiums

Tokio Marine Term Assure II

5 years up to age 85

Affordable premiums

Prudential PRUActive Term

5 to 82 years (up to age 100)

Highly customizable

SingLife Term Life Series Three

1 year up to age 99

Shortest term available

Great Eastern GREAT Term

6 years up to age 100

Longest coverage

Manulife ManuProtect Term (II)

5 to 40 years

Smoker-friendly policy

AXA Term Protector

5 years up to age 99

Can insure infants

Looking for term life insurance quotes? Head over to our product page to learn more.

 

Aviva MyProtector Term Plan II

Aviva MyProtector Term Plan II is one of the most affordable options if you are looking for basic term insurance up until your children become financially independent. You can opt to increase coverage at key life events and add-on riders from a Aviva’s extensive selection, including critical illness cover.

Term: 5, 10 years or from 11 years up to age 85

Coverage: Death, terminal illness

Riders: Total and Permanent Disability Benefit, Critical Illness Accelerated Benefit II, Critical Illness Premium Waiver II

 

Tokio Marine Term Assure II

Tokio Marine Term Assure II is another popular term life insurance plan for those looking for affordable basic coverage. You can start out low and increase your coverage and/or add-on riders as you see fit. It’s worth noting that Tokio Marine Term Assure II covers TPD until age 85, beyond what is commonly offered in the market.

Term: 5, 10 years or from 11 years up to age 85

Coverage: Death, terminal illness, TPD

Riders: Critical illness accelerator rider, Early critical illness accelerator rider, Protect 1 Lite Rider, Waiver of Premium Rider, KidAssure GIO Rider

 

Prudential PRUActive Term

With a minimum sum assured of $100,000, the Prudential PRUActive Term plan provides adjustable coverage and premium around your changing lifestyle. You can adjust the premium period, coverage duration and coverage amount to suit your needs.

Term: 10 to 82 years, up to age 100

Coverage: Death, terminal illness, TPD

Riders: Crisis Care II, Early Stage Crisis Cover, Early Stage Crisis Waiver and Crisis Waiver III Benefits

 

SingLife Term Life Series Three

Looking for a super-flexible short-term solution? The SingLife Term Life Series Three life insurance policy has the shortest policy term of 1 year on the market. You can renew or adjust the plan according to your needs anytime. Note that it does not cover TPD and there aren’t lot of riders to choose from.

Term: Customise your plan’s policy term from 1 year to terms up to age 99

Coverage: Death, terminal illness

Riders: Critical Illness Advance Rider Series Three, Disability Advance Rider Series Three 

 

Great Eastern GREAT Term

Like the idea of lifelong insurance protection, but don’t need the cash value of a whole life insurance policy? Term life insurance plans like Great Eastern’s GREAT Term offer practically lifelong coverage (unless you outlive 100 years old). You can also convert your policy into a whole life insurance plan in the future

Term: Minimum of 6 years up to age 100

Coverage: Death, terminal illness

Riders: Total and Permanent Disability Benefit Rider, Critical Illness Rider (covers 53 critical illnesses)

 

Manulife ManuProtect Term (II)

Smokers usually have a hard time trying to get insured as most insurers are not willing to take on the risk of insuring you. The ManuProtect Term plan, however, is a smoker-friendly life insurance policy. It also comes with a Quit Smoking Incentive to encourage you to stop. This term life plan is renewable yearly, and Manulife guarantees renewal up to age 85, regardless of your health condition.

Term: 5 to 40 years, single premium option available

Coverage: Death, terminal illness

Riders: Total and Permanent Disability Plus Rider, Critical Illness and premium waiver

 

AXA Term Protector

If you’ve just started a family and are looking for life insurance coverage for everyone, you can consider AXA Term Protector as its entry age is as young as 1 month old. This is also one of the rare life insurance plans that allows you to pay a single premium instead of regular premiums, so you can pay a lump sum up front and not have to worry about it later. 

Term: 5 to 30 years, or up to age 50 to 99 (Single premium is only available for a coverage period of 5, 10 or 15 years).

Coverage: Death, terminal illness

Riders: Advance TPD Payout, Advance Critical Illness Payout, Disability Cash Benefit, Critical Illness Plus Benefit, Personal Accident Benefit, Guaranteed survival payout, Early Critical Illness payout

 

Term life vs whole life insurance: what’s the difference?

Term life insurance is often contrasted against whole life insurance, which covers you for life. Traditionally, people opted to cease their insurance coverage when their dependents are old enough to be financially independent.

But, these days, many term insurance policies are able to cover you up to age 99 or 100, which is practically for life too. So if you are looking for lifelong coverage, term insurance can be an option as well.

The more important difference between term life vs whole life is cash value. Term life insurance has no cash value, but whole life insurance does. Which means, should you decide you want to cash out your life insurance plan and treat it as your retirement nest egg, you can!

The other big difference? The cost of premiums. Term life insurance is affordable because you’re paying only for insurance. With whole life, however, you’re paying for both insurance and investments (to build up the plan’s cash value).

Which is better? Well, it really depends on what you want out of your plan. For what’s it’s worth, close to 70% of PolicyPal users prefer term life insurance over whole life insurance!

Want a more detailed breakdown? Here’s a term life vs whole life insurance comparison.

 

How does term life insurance work?

Not sure how exactly term life insurance works? Here’s a case study. We’ll use Tokio Marine Term Assure (II), one of the most popular term life insurance plans on PolicyPal. This plan is very suitable for those looking for flexibility to adjust their coverage in line with their changing needs.

Using an imaginary customer, Sally, as an example, you can see how the term life insurance plan can provide payouts during two critical stages in Sally’s life:

  • When she is diagnosed with colon cancer (only if Sally had opted fo a critical illness rider)
  • When she passes on at age 67

Is life insurance really necessary? What if you have no dependents?

Maybe you don’t have any kids, and your parents are financially independent. Do you still need life insurance? After all, nobody depends on your income to support them.

If you are a Singapore citizen or PR, you’re probably already automatically covered by the CPF board’s Dependants’ Protection Scheme or DPS, which is actually a form of term life insurance.

It covers you up to 60 years old, and pays out up to $46,000 in the event of death, TPD or terminal illness. Premiums are deducted from your CPF savings. (You can write in to cancel your DPS if you wish.)

The main thing to ask is whether $46,000 is enough of a payout. It might not be enough if, for example, you have a home mortgage or other outstanding loans when you pass away, because these liabilities may be passed on to your next of kin. 

Another issue is the lack of coverage for other events like critical illness. (As the saying goes, it’s cheaper to die than fall sick in Singapore.) DPS, unlike term life insurance plans, does not offer add-on riders, so you’ll want to look into buying a separate critical illness insurance plan

 

How much life insurance coverage should you have?

The standard Life Insurance Association recommendation for life insurance coverage is 11X your annual income… but what exactly does that mean?

Well, that number refers to the ideal “sum assured” in your life insurance policy. For example, the sum assured for DPS is $46,000. This is the maximum payout that you’ll get in the event of your untimely demise.

For private life insurance, sum assured usually starts from $100,000. The higher your sum assured, the most expensive your premiums get.

When looking for a life insurance plan, you’ll be asked to choose your sum assured, so it’s important to know what exactly it is for.

Typically, financial advisers will total up your liabilities to determine an appropriate sum assured. These include your outstanding loans (e.g. mortgage, car loan) which will need to be settled in full if you pass on. 

However, if you don’t survive but unfortunately become TPD, then you’ll also need expenses for your medical treatment, home-based care, food, utilities and so on — on top of paying off your loans.

The sum assured should ideally cover all of the above, which can add up to a sizeable six-figure sum or more. Your financial adviser would be able to give you a more accurate number after speaking with you.

 

PolicyPal promotion: 10% commission rebate via PayNow

Compare, buy and manage your life insurance on PolicyPal — and earn cash rebates while you’re at it!

 

Arrange a free teleconsulting service with PolicyPal

Because life insurance isn’t one-size-fits-all, we strongly recommend speaking to us before you commit to a life insurance plan of any sort. Our professional advisers can assess your budget and needs holistically, and give you personalised recommendations.

PolicyPal offers all our members a free financial portfolio review. This review will help you better understand how to create a suitable financial plan for you and your family. We will analyse life insurance products from over 20 insurers and present you solutions that are tailor-made to address your concerns. 

Our advisers will be more than happy to help you understand any of these insurance policies: 

  • Health Insurance
  • Critical Illness Insurance
  • Endowment/Savings Insurance 
  • Personal Accident Insurance
  • Term/Whole Life Insurance

To get in touch, you can WhatsApp us at 87500688 and let us know your preferred date and time for the appointment. Alternatively, leave your details below and we will contact you to help you set up an appointment. 

If you would like to know more about a specific life insurance product you can also let us know your preference. This is so that we can be better prepared during the appointment to present you with a comparison table if needed.

Submit your interest now!

The teleconsultation can be done through a Whatsapp phone call or video call. We would recommend using Zoom as it is a free video-conferencing app that you can download for clear audio and video consulting on your computer or your phone. 

 

PolicyPal claims & contact information

 Contact Information
PolicyPal Customer Service+65 3163 9184
PolicyPal Claims[email protected]

 

Read more:
Term Life Insurance vs Whole Life Insurance: Which Is Best for You?
Best Whole Life Plans in Singapore
Do you have enough life coverage at your current life stage?

PolicyPal

PolicyPal

PolicyPal is here to help you make informed and savvy financial decisions through the good times and the bad.

Recommended Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Show Buttons
Hide Buttons