Skip to main content

The Cheapest Term Life Insurance in Singapore [Updated March 2019]

Life insurance coverage against death, TPD and critical illness is necessary and most people I know do not have adequate coverage. They think it is expensive to get themselves adequately covered. However, that is not the case. Adequate life insurance can be affordable, yet leave you with good cash flow to live life.

The basis of insurance is for protection first and foremost.

When we purchase insurance, we sought to address a particular health risk that would create monetary challenges for ourselves or our loved ones.

Some of the most common ones are:

  1. The risk that if you passed away, your loved ones will have a difficult time getting on with their lives, servicing still outstanding debts and mortgages. We buy life insurance against death for this
  2. The risk that if you suffer from some major illness or require a major hospital stay, you do not have the money to pay for astronomical inpatient or outpatient medical bills. We buy hospital and surgical plans for this
  3. The risk that if we suffer from an advanced stage illness, we do not have an income as we have to stop work, and we readily need money for miscellaneous treatment costs and alternative treatment. We buy critical illness plans to address this

There are more health risk that insurance can hedge, and a good primer on insurance is listed out in this FREE E-Book which I talked about here.

How much protection do you need to purchase and will it cost a bomb?
The above table shows how much it would cost you to get covered for death, total permanent disability and advanced stage critical illness if you purchase it at less than 30 years old, 35 years old, 40 years old and 45 years old.

Getting adequate coverage can be pretty affordable! It would take $180 per month to insure $1 mil death and TPD plus $500,000 in late stage critical coverage at 30 years old. 
MoneyOwl, an insurance portal that allows you to compare and purchase insurance plans of companies like Manulife, AXA, Tokio Marine, Zurich and Aviva, has come up with a set of life insurance comparison tables.
These life insurance comparison tables lets you compare and easily see for the same coverage, how much annual premiums you will pay if you purchase from each insurer.
Let us go through each sections.

Term Life Insurance for Death and Total Permanent Disability (TPD) Protection

Term Life Insurance for Death and Total Permanent Disability (TPD) Protection

The first area of protection protects 2 areas:

  1. it assures your dependents that if you passed away, they have $X to maintain their life for Y years
  2. it assures a sum paid out if the assured suffers from permanent lost of both hands above the wrists, both feet or above the ankles, one hand or one foot, or that the assured is unable to perform 3 out of 6 “Activities of Daily Living”

Suppose the assured K has the following profile:

  • Earns $50,000/yr
  • Youngest child will be productive (graduated from university) in 22 years
  • Amount of outstanding debts other than mortgage is $2500
  • Cost of Education when required $180,000

The total amount of coverage that K requires, works out to be roughly $1,282,500.

The table below compares the term life insurance to age 65 for a coverage of $1 million. This is for a male, non-smoker (click image to view larger table):

Singapore Life, FWD are the most price competitive. But AXA and Aviva is as cheap.
The annual premiums for the plans change from time to time so do not take it that once you see it here, the figures will not change.
From time to time, some term insurance distributors such as Aviva will have discounts on premiums if you purchase a $1 million policy. These are factored into the price comparison above if MoneyOwl are aware.
Use these tables to:
  1. find out how much it will cost you to cover the amount you need
  2. see how wide the annual premiums can be for generic coverage
  3. find out which are the cheaper ones and more expensive ones
The younger you can get yourself enrolled the lower the annual premiums to pay.
The cheapest premiums for different age bands are also different. Aviva, FWD and Singapore Life looks to be the most price competitive.
If you wish to get coverage that is not $1 mil but less or more than this, it is possible
The follow table compares the annual premium for death & TPD coverage for female:

The follow table compares the annual premium for death & TPD coverage for female:
Again, the annual premiums for woman is cheaper with FWD and Singapore Life being the cheapest.

Term Life Insurance for Critical Illness Protection (inclusive of Death and TPD)

Critical Illness Protection covers you, on top of the death and TPD protection mention previously, 37 major critical illness as defined by the Life Insurance Association (LIA).
These are illnesses that have reached a severe stage. Readers should be aware that there is critical illness protection for illnesses that are diagnose in the early stage. This is NOT that.
Typically the assured K tries to cover 3 to 5 years of his/her income and a sum of money for alternative treatment.
So if the assured K:
  1. Earns $50,000/yr
  2. Plans to have $100,000 for alternative treatment and out of pocket treatment
To be assured, K should be looking for a coverage of $250,000 to $350,000.
The following table shows the coverage for male for a sum assured of $500,000 to age 65:
FWD and Singapore Life are the most price competitive.
The coverage amount is less than a pure death & TPD, but the premiums is more expensive than death & TPD primarily due to the cost of the critical illness portion.
The following table compares the coverage for the female in terms of critical illness:

The following table compares the coverage for the female in terms of critical illness:
Again, the annual premiums for woman is cheaper with FWD, Aviva and Singapore Life being the cheapest.

The Trend of Price Changes for Singapore Term Life Insurance and Term Life with Critical Coverage

The comparison have change a little since the last coverage at Investment Moats..
Almost all the prices in critical illness and life insurance have came down by a lot in December. You can probability get a good policy during this period.

Compare, Get your Quote and Purchase Direct Today

Compare, Get your Quote and Purchase Direct Today

You can look up, compare, then purchase the following term insurance direct from MoneyOwl:

  1. Aviva
  2. Manulife
  3. Tokio Marine
  4. AXA
  5. NTUC Income
  6. Zurich

To purchase FWD Insurance, you can purchase the term insurance directly from them on their web portal here.

To purchase from Singapore Life, you can purchase the term insurance directly from them on their web portal here.

For Term Insurance of Smaller Amounts – Direct Purchase Insurance (DPI)

While the illustration shows term death and critical illness coverage of $1 mil and $500,000 respectively, you can vary the coverage based on your needs.

It does not mean the coverage is fixed.

However, MoneyOwl have shared that for term life insurance (death and TPD coverage only) that is less than $400,000, it would be more value for money if you purchase it directly from the insurers under the Direct Purchase Insurance (DPI).

The DPI is the government’s execution of one of the recommendation, to create an avenue for consumers like you and me to purchase term life and whole life insurance from the insurance company direct, and not have to go through agents.

All 12 insurers in Singapore have direct means for you to purchase, though they may be hard to find.

If the amount is $400,000 or more, or if you require critical illness coverage, then the term life insurance premium comparison table above is valid.

Credit Rating of Insurance Companies

An insurance company credit rating is the opinion of an independent agency regarding the financial strength of an insurance company. An insurance company’s credit rating indicates its ability to pay policyholders’ claims.

The following table enables you to gauge the credit rating of insurance companies:
source: http://investmentmoats. com/budgeting /insurance/ cheapest -term-life-insurance-in-singapore/

1 2 3 4 5


Popular posts from this blog

Tips For Getting The Best Auto Insurance

Finding cheap auto insurance is often a method for the typical consumer to minimize for the annual premium they will pay for their automobile insurance. Of course if you would like the top car insurance policy, you are going to have do some major shopping around to make it. You will also may need to look for that company that will be giving you the very best discount, as this is among the numerous solutions to have the ability to save money on your car insurance. In almost every state in the US, insurance is a requirement to be capable of drive. So in order for you to be capable of drive safely and prevent any problems, you are going to have just be sure you plenty of insurance on your car. Besides the idea that their state and government officials require insurance, you additionally need insurance for the people days that are not in your favor and you get embroiled in most type of accident. They only thing that this wonderful rate that you will be paying cannot help sav

Why Don't People Insure Their Precious Lives?

We all attach value to all things in our way of life. Everyone I know puts the greatest value for their families, parents and health. I have heard people point out that they could and can do anything to guard their families. And, I totally believe men and women you must do everything humanly possible to protect their loved ones from invaders, killers, etc. But, then how about we 35-40 percent of Canadians protect their loved ones from themselves? I mean it could be our fault; whenever we die and family must struggle financially. It would be with enough contentration to see relatives (wife / kids / parents) to deal with no us around. Why don't 35-40 percent of Canadians have their own lives insured to be sure that or their loved ones are financially protected? We all have our cars, homes, boats, etc, insured. We put high value on these material items. But may seem like 40 percent of Canadian put less value on their lives than other activities. Why do we put our famili

No Car Insurance Is A Crime

In this day and age, there are many items that occupy our minds. We have plenty of commitments, especially financially, to items like bonds, cars, clothing accounts, charge cards, school fees ? the list goes on and so on. People have a tendency to feel overwhelmed, current rising expense of experiencing regards to inflation and interest levels, it sometimes feels required to reduce costs whenever you can. Unfortunately, most of the time people find things such as insurance, whether it be motor, household, or insurance coverage, a "luxury." Imagine struggling to produce ends meet ? with relation to settling a bond (if you're not renting), buying food, school fees and even the price of petrol? would you stop and take into consideration adding one more bill for the pile after the month for a thing that may never happen? Logically speaking, there is no guarantee that your particular house will probably be robbed, or you will probably have an accident. Now, here