Not impressed by life insurance policies which charge astronomical premiums? Then you might want to consider its much simpler, straightforward and cost-effective sibling: term life insurance.
Both types of insurance are life insurance policies, which pay out a sum of money (your “sum assured”) if you pass away or become totally and permanently disabled. The money will go to supporting your dependents and helping with outstanding loans such as your mortgage.
What is term life insurance?
Term Life Insurance: The Straight‑Line Protector
What’s the deal? Term life insurance is all about coverage—no frills, no extra baggage. You pay your premiums, you get the safety net, and you’re done. Unlike whole life plans that double as investment vehicles, term policies keep things simple.
Why it’s not an investment ladder
- There’s no cash‑value buildup. You won’t see a growing pot you can withdraw in a pinch.
- Higher premiums come with whole‑life, so keeping it low is a benefit.
- No strange tax or withdrawal rules—just clean protection.
Easy on the long‑haul commitment
Want to protect for a specific period—say, 10, 15, or 20 years? Pick the term and you’re good to go. After those years, the contract ends, so there’s no ongoing lock‑in.
When term is your sweet spot
- You need a straightforward safety net for a set timeframe.
- You’re not after wealth‑accumulation via your insurance.
- Simplicity is key—no complex policies, no surprise costs.
Bottom line: If you’re after pure protection and don’t want your insurance to double as a savings account, term life insurance is a practical, cost‑effective choice. No cash‑value headaches, no extra premiums—just a clear, reliable plan for the years you need it.
6 best term life insurance plans in Singapore
Term insurance
Sample monthly premium*
Key features
FWD Essential Life
$21.32
Easy to buy online
NTUC Term Life Solitaire
$28.50
Elderly-friendly riders
Manulife ManuProtect Term II
$26.81
Smoker friendly premiums
AIA Secure Flexi Term
$28.47
Includes terminal cancer coverage
Tokio Marine Term Assure II
$26.75
Comprehensive coverage
AXA Term Protector & Term Protector Prime
$28
Comes in 5 different currencies
*Based on an annual premium for a 30-year-old, male, non-smoker with a policy term of 20 years and $500,000 sum assured.
FWD Essential Life term insurance
FWD Essential life is a term life insurance policy offering $100,000 to $750,000 worth of protection up to the age of 85. This is a plan for those who don’t need a high sum assured, as $750,000 is not a huge sum of money when it comes to life insurance.
They’ve got an optional cancer benefit which entitles you to your entire sum assured if you get a cancer diagnosis at any stage.
FWD is one of the most internet-friendly insurers out there as most of their plans can be purchased online. Essential Life is no different, and can be a good choice if you’re too lazy to speak with a financial advisor.
FWD Essential Life is renewable until you hit the age of 85, or until the policy is discontinued.
Covid-19 coverage: $5,000 lump sum payout for any adverse side effects from the Covid-19 vaccine
Sample premium: $21.32 for a 30-year-old, male, non-smoker with a policy term of 20 years and $500,000 sum assured
NTUC Term Life Solitaire insurance
Why This Insurance Plan is a Lifesaver (and Not Just Financially)
What’s on the Menu
This plan sticks its claim on the big-ticket items: death cover and terminal illness with a minimum sum assured of $500,000—that’s a hefty bite right out of the gate.
Renewal Rodeo
Like a loyal old horse, the policy guarantees renewal all the way until you’re 74 years old. Want an encore? Pick the right term and you could keep the coverage running up to a grand old age of 100.
Riders for the “Subject-ive” Generation
- Hospital cash rider – because you’ll definitely need that extra cushion when the bills pile up.
- Disability payout – so you don’t have to sell your prized lawnmower if life throws a wrench in the works.
- “Dread” death & disease riders – payouts for early, intermediate, and advanced stages of scary illnesses. Think of it as a safety net for when life gets a bit too dramatic.
- Premium waivers – these handy dishes can freeze your premiums if you hit a dreaded illness or pay premiums for a loved one who’s no longer with us.
VIP One-Time Perk
If you’re playing with the big numbers (sum assured of at least $3 million), you get a once-in-a-lifetime medical concierge service. Picture a personal health concierge, ready to pull together a full medical check‑up whenever you need it.
Price Check
Take a quick peek at what you’d pay:
- Age: 30 years old
Male, non-smoker – skip the wheezes. - Policy term: 20 years
- Sum assured:
- Monthly premium: $28.50
In short, it’s a plan that’s as serious about your life as it is about your wallet. Grab it before “death” or “dread disease” even thinks about calling—after all, everyone needs a solid backup plan.
Manulife ManuProtect Term II insurance
This yearly renewable plan, which offers protection of $75,000 onwards from death and terminal illness, is fairly customisable. You can choose between 5 to 10 year terms that are automatically renewable until age 85, as well as terms ranging from 11 to 40 years, or until age 65, 75 or 85.
They’ve also got a decent number of optional add-ons, including riders for total and permanent disability, critical illness and premium waiver.
Smokers, who are usually at a disadvantage when it comes to insurance, get to pay the lower non-smoker premium rates for the first three years. If they manage to quit during these three years, they can continue paying non-smoking premiums.
Sample monthly premium: $26.81 for a 30-year-old, male, non-smoker with a policy term of 20 years and $500,000 sum assured.
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AIA Secure Flexi Term insurance
This plan, which offers a sum assured of $500,000 onwards, offers renewal terms of five, 10, 20 or 30 years, or up to age 65 and 75. It used to be one of the few term life plans that offers renewal up to the age of 101, but no longer offers this longevity option.
The plan covers you for death, terminal illness, and terminal cancer. You can also give your protection a boost with their riders offering early critical illness protection, disability protection and premium waivers if you get a critical illness or become disabled.
Sample monthly premium: $28.47 for a 30-year-old, male, non-smoker with a policy term of 20 years and S$500,000 sum assured
Tokio Marine Term Assure II
Tokio Marine may not be the obvious choice when it comes to getting life insurance, but their term life insurance plan is actually quite solid. It offers protection of $100,000 and more against death, total and permanent disability and terminal illness, without the need to buy additional riders.
The plan also offers policy terms of five or 10 years, or from 11 years up to the age of 85. You can also add on to your coverage in the event of certain milestones in life like marriage or parenthood.
The plan is offered in four currencies — SGD, USD, GBP and AUD. That makes it worth considering for expats or Singaporeans working abroad.
Sample monthly premium: $26.75 for a 30-year-old, male, non-smoker with a policy term of 20 years and $500,000 sum assured.
AXA Term Protector & Term Protector Prime insurance
This renewable policy is one of the most flexible ones out there. It offers coverage up to age 50, 55, 60, 65, 70, 75 or 99. Alternatively, you can choose renewable terms of five, 10 15, 20, 25 or 30 years. You can also choose from a sum assured of $100,000 to $2,000,000.
The plan is offered in five currencies — SGD, USD, EUR, GBP or AUD — so expats or overseas Singaporeans take note.
Another interesting feature is the Indexation Option, which lets you adjust your protection to take future inflation into account. If you opt for this, you can have your insurance cover (and premiums) adjusted every year in line with the Singapore Consumer Price Index.
Sample monthly premium: $28 for a 30-year-old, male, non-smoker with a policy term of 20 years and $500,000 sum assured
ALSO READ: 5 things you may not know about personal insurance in 2020
How to start shortlisting term insurance policies
When choosing a term insurance policy, think first about the basic parameters:
Sum assured: The amount of payout you need
Policy term: The number of years you wish to have protection. If you’re not sure how long that’ll be, opt for a renewable policy.
Once you have the basics down, think about the riders and perks you wish to receive. For instance, if you don’t want to buy critical illness insurance separately, you might want to opt for a term life policy with a critical illness rider.
This article was first published in MoneySmart.
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