Coverage Type
Life Protection
Best For
Breadwinners
Key Benefit
Family Security
The most comprehensive guide to life insurance in Singapore. Understand every type of coverage, from basic term plans to sophisticated wealth structuring solutions.
Foundation
Life insurance is about protecting the people who depend on you financially. It's not about you - it's about them.
If you're a breadwinner with dependents or financial obligations, life insurance ensures your family can maintain their lifestyle even if something happens to you.
Think about it: your mortgage payments, children's education, elderly parents' care, and daily expenses don't stop when your income does. Life insurance bridges this critical gap.
"If I'm no longer around tomorrow, how will my family pay for the mortgage, school fees, and daily expenses for the next 10-20 years?"
Lump sum payout to beneficiaries
Early payout if diagnosed
Cancer, heart attack, stroke, etc.
Unable to work permanently
Enter your income below to get an instant estimate based on the 9x annual income rule
Your Recommended Life Insurance Coverage
Based on 9× your annual income (industry standard for income replacement)
$0
Annual Income
×9
Multiplier
$0
Coverage Needed
Note: This is a quick estimate. Your actual needs may vary based on liabilities (mortgage, loans), future expenses (children's education), and existing coverage.
How many years of income should your family have?
Formula: Annual Income × Years Needed
Example: $80K × 10 years = $800K
What debts need to be cleared?
What costs are coming?
Total Coverage Needed = Income Replacement + Liabilities + Future Expenses - Existing Coverage
Most Singaporeans are underinsured by $200K-$500K. A proper needs analysis can help you find the right number.
Insurance Type
Pure protection for a defined period. Term insurance covers you for a fixed term (e.g., 10, 20, 30 years) with a fixed premium. There's no cash value - it's purely protection, which means you get the maximum coverage at the lowest cost.
Select 5, 10, 20, or 30 years based on your needs
Fixed monthly/yearly payment throughout the term
Full coverage during entire term period
Payout on claim, or renew/convert at term end
Get $500K-$1M coverage for just $50-$150/month. The best bang for your buck.
Coverage for exactly when you need it - during working years, mortgage period, or until kids are independent.
No investment component, no complex bonuses. You know exactly what you're paying for.
Young Families
Need high coverage, limited budget
Mortgage Holders
Match coverage to loan tenure
Sole Breadwinners
Protect family's income needs
DIY Investors
Prefer to invest separately
Parents
Cover until kids are independent
Deep Dive
Term insurance comes in many specialized forms. Here's a comprehensive breakdown of each type available in Singapore.
The most common and straightforward term insurance. Coverage amount stays constant throughout the entire policy term.
Typical Cost: ~$30-80/month for $500K coverage (age 30)
Coverage decreases over time, designed to match a reducing liability like a mortgage balance.
Typical Cost: ~$15-40/month for $500K coverage (age 30)
Note: CPF has its own Home Protection Scheme (HPS) for HDB loans up to 65. Private property owners should get separate mortgage term coverage.
Pays out a lump sum upon diagnosis of specified critical illnesses like cancer, heart attack, or stroke.
1 in 4 Singaporeans will develop cancer before age 75. CI insurance replaces income during recovery (typically 3-5 years), pays for treatment costs not covered by MediShield/IP, and allows you to focus on recovery instead of finances.
Provides monthly income replacement if you become disabled and cannot work in your current occupation.
Key Question: If you can't work for 6 months, can you still pay your bills?
Government-backed group insurance for servicemen, NSmen, and their dependents at subsidized rates.
Important: While MINDEF plans are excellent value, they typically have lower coverage limits (e.g., $150K-$300K). Most families need additional private coverage to fully protect their income needs.
Life insurance provided by employers as part of employee benefits package. Coverage typically based on salary multiple.
Recommendation: Treat employer coverage as a bonus, not your primary protection. Always maintain personal term insurance that stays with you regardless of employment.
Premium renews annually based on current age. Starts cheap but increases each year.
Warning: YRT becomes very expensive after age 50-55. Plan to convert or replace before then.
Insurance Type
Lifetime coverage with cash value accumulation. Whole Life covers you for your entire life (typically to age 99/100). Part of your premium builds cash value over time, creating both protection and a savings component.
Your premium is split into two parts:
Cost of Insurance
Pays for death/TPD/CI protection
Cash Value Component
Accumulates as savings over time
*Based on projected bonuses. Actual returns may vary.
Protection until age 99/100. Never worry about losing coverage or being uninsurable.
Builds guaranteed + non-guaranteed bonuses. Can be used for loans, withdrawals, or surrender.
Guaranteed payout to beneficiaries whenever you pass. Perfect for inheritance planning.
Earns reversionary bonuses based on the insurer's participating fund performance. Lower risk, steady growth.
Part premium for insurance, part invested in sub-funds. Higher potential returns, but not guaranteed.
Conservative Mindset
Want guaranteed lifelong coverage with no market risk
Legacy Focused
Want to leave guaranteed inheritance for family
For Children
Lock in cheap rates while young and healthy
Higher Budget
Can afford higher premiums for permanent coverage
Side by Side
| Feature | Term Life | Whole Life |
|---|---|---|
| Coverage Duration | 5-30 years (fixed term) | Lifetime (to age 99/100) |
| Premium Cost | Low | 5-10x Higher |
| Cash Value | None | Yes - accumulates |
| Coverage per $ Spent | Very High | Lower |
| Flexibility | Easy to cancel/switch | Surrender penalty if early exit |
| Investment Component | None | Yes (participating fund or ILP) |
| Payout Certainty | Only if claim during term | Guaranteed payout eventually |
| Best For | Maximum protection, limited budget | Legacy planning, forced savings |
Is coverage needed for life?
Is budget tight?
Legacy planning priority?
Use Term for high coverage during your working years (mortgage, income replacement), and Whole Life for a smaller permanent legacy amount. This gives you maximum protection when you need it most, while ensuring something is always there for your loved ones.
For high-net-worth individuals seeking sophisticated wealth structuring, legacy planning, and tax-efficient investment solutions.
Universal Life combines flexible premiums, adjustable death benefits, and cash value growth. It's one of the most powerful solutions for legacy planning, retirement income, and wealth transfer.
Gift More Than You Have
Leverage death benefit multiplier
Yield Enhancement
Better than FD returns
Capital Protection
Principal guaranteed
Legacy Transfer
Tax-efficient inheritance
Universal Life (UL), Indexed UL (IUL), Variable UL (VUL), and Private Placement Life Insurance (PPLI) are all forms of permanent life insurance that combine a death benefit with a cash value component. However, they differ significantly in investment risk, control, cost, and target audience.
Stable, interest-bearing cash value with flexible premiums, often offering guaranteed minimum rates.
Cash value linked to market index (e.g., S&P 500) with 0% floor (downside protection) and capped gains.
Cash value invested directly in sub-accounts (similar to mutual funds). High growth potential but also high risk.
Custom, low-cost "wrapper" for HNW individuals. Access to hedge funds, private equity, and alternative assets.
| Feature | UL (Traditional) | IUL (Indexed) | VUL (Variable) | PPLI (Private) |
|---|---|---|---|---|
| Cash Value Growth | Declared interest rate (set by insurer) | Tied to index (e.g., S&P 500) | Market-linked sub-accounts | Custom/Private (Hedge Funds, PE) |
| Risk / Return Profile | Low Risk / Low Return | Moderate / Moderate | High Risk / High Return | High / Tailored |
| Downside Protection | Yes (usually) | Yes (0% Floor) | No | No (usually) |
| Upside Potential | Limited (~3-4% p.a.) | Capped (8-12% typical) | Unlimited (market returns) | Unlimited (customized) |
| Premium Flexibility | Flexible | Flexible | Flexible | High |
| Costs / Fees | Moderate | High (insurance costs) | High (management fees) | Low (cost-effective) |
| Investment Options | Fixed by insurer | Index selection | Sub-account funds | Alternative assets, PE, HF |
| Minimum Premium | Low/Moderate | $100K or less | Moderate | $2M - $5M+ |
| Best For | Stable Coverage | Growth with Safety | Aggressive Growth | Tax-efficient HNW Portfolio |
Traditional UL provides a death benefit and a cash value component that earns interest based on rates set by the insurance company. It is ideal for individuals looking for permanent protection with flexibility in premium payments and death benefit amounts.
Typical Returns: 3-4% p.a. with guaranteed minimums
IUL is designed for those seeking market-linked growth without direct market risk. Cash value gains are tied to an index (e.g., S&P 500), but subject to caps (maximum return) and floors (usually 0%), protecting the policyholder from market declines.
Typical Returns: 0-12% (capped), avg. 5-7% historically
VUL is for investors comfortable with higher risk in exchange for potentially higher returns. The cash value is placed in sub-accounts that act like mutual funds. Unlike IUL, there is no 0% floor, meaning cash value can decrease. Used for aggressive wealth accumulation.
Warning: Cash value can decrease. No downside protection.
PPLI is a sophisticated, "institutional-class" structure designed for high-net-worth individuals. It acts similar to VUL but with much lower, transparent fees ("pay-as-you-go"). Used to remove the "tax drag" on high-return, tax-inefficient assets while providing a death benefit.
Minimum Premium: Typically requires $2 million to $5 million or more in premium commitment. PPLI is regulated differently and often domiciled in favorable jurisdictions.
You want safety and flexibility with guaranteed minimum returns and principal protection.
You want upside potential with a safety floor (0% minimum) - growth without market losses.
You want high investment growth and have the risk tolerance for market volatility.
You are HNW ($5M+ portfolio) looking for tax-efficient, customized investments with alternative assets.
Not sure which Universal Life product fits your situation? Our advisors specialize in matching the right solution to your wealth goals.
Speak to a Wealth AdvisorAges 25-45
Term + Whole Life for protection
Ages 45-60
IUL/VUL + Investment strategies
Ages 60+
PPLI + Family Office structuring
Not sure which type of life insurance fits your needs? Let us help you analyze your coverage gaps and compare Term, Whole Life, and Universal Life options tailored to your situation.