Best Term Life Insurance in Singapore 2024

Term life insurance is a type of life insurance that will pay out a specific sum if you die during the time you are insured. In general, it is most beneficial for young couples who want to ensure their young children will have financial support in the event of the parent's untimely death.

One of the most important things you have to look at when deciding which term life policy best suits you is to look at the term periods. Term life insurance comes in renewable and non-renewable terms. You can purchase a traditional term life policy with between 5 year (renewable) and 30 year maturities or up to ages between 55-99 (non-renewable).

You'll have to look at features next. Unlike whole life insurance, you'll only get a payout if you die or are diagnosed with a terminal illness. However, some insurers offer additional benefits and riders. These benefits can include guaranteed renewal, inflation protection, a convertibility option (converting to a whole life policy) or increased coverage for certain life milestones. Riders can include permanent disability coverage and premium waivers. Looking at your lifestyle and concerns and matching them with the benefits and riders offered can help you further narrow down your options.

Though term life insurance is fairly straightforward, it still requires a considerable amount of research to find the best plan for your needs. This is why we strongly recommend reaching out to our advisors at PolicyPal, to help you get the best coverage for you.

FWD's DIRECT-Term Life insurance offers death and total & permanent disability coverage (TPD) of up to S$400,000 and offers the opportunity to buy a critical illness rider. You can get the plan for 5 years, 20 years or until you are 65. FWD offers competitive prices for its S$300,000 and S$400,000 plans, with its premiums 10-25% cheaper than the market average for 5 and 20-year plans regardless of your gender. You will also receive S$5,000 for funeral expenses paid by the next business day after they receive the death certificate. However, FWD is not the cheapest option for 25-year olds or those who are looking for plans with coverage of up to age 65. FWD's umbrella company, FWD Group Financial Services, currently has a credit rating of BBB-.

Direct-Etiqa Term Life provides 5-year, 20-year and until age 65 plans with death and total & permanent disability (TPD) coverage between S$50,000 and S$400,000. It is one of the cheapest options on the market for young non-smoking consumers in their 20-30's, as its premiums range between 10-47% below average for this age group. It is especially affordable for females, as their 5-year plans with S$50,000 of coverage cost less than S$1.50 per month. Those looking for up to age 65 plans, S$400,000 plans and older consumers may see premiums hover around average to 20% below average. You can save a further 5% by paying annually instead of monthly. Etiqa's credit rating according to Fitch is A-.

Great Eastern's Direct-Great Term Life insurance is one of the cheapest options for older Singaporeans looking for up-to-age-65 plans, regardless of the amount you want to be insured for. For instance, a 55-year old consumer looking for an up to 65-year old plan will see premiums that are around 30% below the market average. On the other hand, Great Eastern is less competitively priced for 5 and 20-year plans and for younger consumers. Furthermore, age is defined as age at next birthday, as opposed to other plans that define your age as the age of your previous birthday, decreasing your total coverage by one year. Great Eastern's latest credit rating from S&P is AA-. If you'd like to apply for this plan or learn more, speak with one of our advisors at PolicyPal.

SingLife's Direct-Term Life insurance offers quite competitively priced plans for older consumers looking for low to mid-level coverage. Its Direct Purchase option offers death and total & permanent disability (TPD) coverage up to S$400,000 and also offers a critical illness rider. Its credit rating is currently BBB. If you'd like to apply for this plan or learn more, speak with one of our advisors at PolicyPal.

FWD's COVID-19 insurance is a short term life insurance policy that provides S$50,000 of death coverage. For people looking for short-term protection strictly for the duration of this pandemic, the coverage, non-committal policy term and flat fee of S$28 can make FWD's COVID-19 insurance an attractive choice. The death benefit for frontline workers is also doubled to S$100,000. Beyond the death benefit, there are also a couple of peace of mind benefits, such as an ICU daily cash allowance and a post-hospitalisation benefit to help you pay for outpatient treatment not covered by the government.

Please note that you will not be eligible to purchase this policy if you previously tested positive for COVID-19, have experienced COVID-19 symptoms, have been self-isolated or traveled in the past 30 days. There is also 14-day waiting period before the policy benefits kick in.

FWD offers a traditional term life plan, Term Life Plus, that let you purchase up to S$1,500,000 in death and terminal illness coverage online. You can either get this as a renewable option, where you can renew your policy each year, or a fixed term policy where you pay the same premiums throughout the selected period. Furthermore, in the event of your death, your spouse (provided they're younger than 55) will be eligible for term life cover of up to S$250,000 for 1 year.

Furthermore, FWD offers a unique Care Recovery feature, in which you will be connected with a nurse after you file a successful claim, who will answer your questions and provide dietary, physiotherapy, nutritional and other services. With a flexible design, this policy makes both the total & permanent disability benefit and critical illness benefit available as a rider.

Etiqa's eProtect term life plans provides between S$401,000 and S$2 million of death, terminal illness and total & permanent disability coverage. eProtect term life policy terms are either 5-years (as a guaranteed renewable), 20 years or up to age 65. We found its premiums to be especially competitive among S$1,000,000 coverage plans for young non-smoking consumers and S$2,000,000 coverage plans for middle-aged consumers. However, there is no option to add a critical illness rider to this plan.

Income's iTerm term life insurance plan offers up to S$499,999 of death, terminal illness and total and permanent disability coverage. You can buy this plan online without going through a financial advisor. You can choose coverage terms between 5-35 years (in increments of 5) or choose to be covered up to the ages of 54, 64, or 74, with the ability to renew until age 84. There are also 4 riders you can get with iTerm, including a dread disease rider that will enhance your coverage to include cover for 32 dread diseases (for instance, major cancers, terminal illness, blindness or coma).

SingLife's term life insurance policy allows consumers to purchase up to S$10,000,000 of death and terminal illness coverage online with the option to purchase total & permanent disability or critical illness riders. The premiums for SingLife's higher coverage plans are pricier for younger consumers compared to other insurers offering similar online plans, but the amount of coverage that you can purchase can be a benefit that may be worth the higher price. Speak to one of our advisors at PolicyPal if you'd like to apply for this product.

Whole life insurance products are quite complex and will require you to consider a number of factors, ranging from your lifestyle and financial needs to your ability to make premium payments. The first thing you'll do is narrow down the type of whole life insurance plan you want. Traditional whole life insurance is divided up into three portions: participating (par), non-participating (non-par) and investment-linked policies (ILP).

Participating whole life policies provide guaranteed and non-guaranteed benefits. The guaranteed benefits are the sum assured (the payout you get upon an insured event happening). Non-guaranteed benefits are bonuses you may receive in addition to the sum assured, which depend on the performance of the insurer's fund. On the other hand, non-participating policies only provide guaranteed benefits (i.e. the sum assured). Investment-linked policies are a combination of life insurance coverage and an investment component. Unlike par and non-par plans, you choose the investment funds rather than the insurer so you bear all the investment risk. Investment-linked policies are generally riskiest life insurance products.

While term life insurance will be the better (and cheaper) option for most people, there may be cases where you'll want greater protection. This includes people who want financial protection for their dependants, want supplemental retirement income or want to leave a financial legacy for future generations. For instance, if you want a savings feature (such as a cash value) with your policy so you can get more than just your sum assured at the end of the term, you can look into a participating whole life policy. On the other hand, if you want the flexibility to invest in the funds you want and have a long investment window (i.e. you are young, working and are experienced with investing), you may look into ILPs.

For all types of whole life insurance plans, we recommend getting coverage that is at least 10-15x your annual income. You should also take into consideration your debt obligations, financial obligations for your children, and lump sum benefits for your beneficiaries. Due to the complex nature of whole life insurance products, we recommend speaking with a financial advisor. Speak to our advisors at PolicyPal to get the best whole life insurance policy for you.

Etiqa's Direct-Whole Life premiums are slightly below average. It offers up to age 75 and up to age 85 plans and will cover you up to S$200,000 until your death or a specified maturity date. There is also a cash value and reversionary bonus accumulation attached to the plan and you can add a critical illness rider. If you choose to pay your premiums annually, you will save around 2.3%. Etiqa's current credit rating is A-.

Income's DIRECT Star Classic Life insurance plan is competitively priced for older consumers compared to other DIRECT Whole Life plans. You will be protected against death and terminal illness until age 99 and total and permanent disability before you turn 65. Upon any of the claimable events, you will receive the sum assured and any accumulated bonuses. You can get a plan either up to age 70 or age 85, but you should note that plans that provide coverage until you turn 85 are slightly cheaper. Income's current credit rating is AA-.

Income's Smart Secure is an endowment plan that only requires one single premium payment and has a short term of just 4 years. It is a general savings plan, which means you can use the funds to pay for anything you want once the term is over. There is a guaranteed cash benefit of 25% of your sum assured that will be disbursed yearly from the end of the first policy year. There is also a 100% capital guarantee, which means that your return will be at least 100% of the premiums you paid (in the form of guaranteed cash and maturity benefits), so you don't have to worry about losing money. However, please note this is as long as you made no policy alternatives or claims over the course of the policy term. The life insurance component provides coverage for death and total and permanent disability.

Manulife's Goal 4 endowment plan is another single premium, short-term savings plan that matures in 4 years. It provides guaranteed yearly income payouts with the option to reinvest them and receive a lump sum when your policy expires. The minimum premium is S$10,000 but you can pay this either in cash or with your Supplementary Retirement Scheme funds. Manulife's Goal 4 endowment plan offers an annual payout of 1.8% of your premium at the end of years 1 to 3, which is smaller than Income's but still a relatively generous amount. Upon policy maturity, you will receive at least 100% of your premiums and you may be eligible for a maturity bonus as high as 1.8% of your premium.

Aviva MySavings Plan can be a good option for people who are looking for long-term savings. It guarantees a 100% return on your premiums upon policy maturity and provides death, accidental death and terminal illness coverage. It can be suitable for long-term savers who want to commit between 10-25 years to a savings plan.

If you're interested in these plans and would like to learn more, please speak to one of our financial advisors at PolicyPal by clicking the "Get a Quote" button.