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6 Best Term Insurance Policies in Singapore for Affordable Protection

best term life insurance policies
best term life insurance policies

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 (or term insurance) focuses purely on the protection aspect without promising to help you grow your retirement nest egg.

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Unlike whole life insurance, there is no wealth accumulation or investment component for term life insurance. You pay your premiums, you get insurance protection in exchange, and that’s it.

This is unlike whole life insurance, which builds up cash value over time. The problem with building up cash value is that it not only makes your premiums higher, but could also complicate matters should you suddenly be strapped for cash and need to make withdrawals. You also have to think about how your surrender value will be affected if you decide to ditch the plan.

With term life insurance, you are also not locked in all your life — you decide how long you want to be protected. So, if you buy a term life insurance plan with a 20 year term, you know you’ll commit to the plan for 20 years and that’s all.

So, in a nutshell, term life insurance can be suitable if all you need is protection and you are not looking to accumulate wealth through your insurance plan.

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 S$500,000 sum assured

FWD logo
FWD logo

Monthly Premium

S$21.32

Monthly Premium

Direct Apply

FWD Essential Life - Direct Term Purchase

Min. Death and TI Coverage

S$100,000

Min. Cancer Insurance Coverage

S$50,000

Max. Renewable Age

85

Monthly Premium
Reference Premium Profile
The Monthly Premium shown is for illustration purpose only. It is calculated based on an annual premium for a 30-year-old, male, non-smoker with a policy term of 20 years and S$500,000 sum assured.

S$21.32

Apply NowApply directly on MoneySmart

More Details

Key Features

  • Just one health declaration and no medical examination.

  • Get up to $750,000 of Essential Life cover. LIA recommends 9-10x your annual income as the cover amount.

  • Just provide your age, gender, smoking status and coverage amount to get quote.

  • Get coverage for 1 year with the guaranteed option to renew up to age 85.

  • Get 100% payout for cancer, even early stages

See all card details

NTUC Term Life Solitaire insurance

This plan offers coverage for death and terminal illness from $500,000 onwards, which is a pretty high minimum. You enjoy guaranteed renewal until age 74, with the possibility of getting covered up to age 100 if you choose your term wisely.

Their selection of riders is targeted at older people or those who live a long life. Available riders let you receive hospital cash, disability payout, dread decease payout, or payouts for early, intermediate or advanced stage dread diseases. You can also buy riders which will offer you premium waivers if you get a dread disease or for a loved one’s premiums you are paying if you die.

One unique perk for those with a sum assured of at least $3 million is the one-time medical concierge service, which you can use to get a full medical check-up.

Sample monthly premium: $28.50 for a 30-year-old, male, non-smoker with a policy term of 20 years and S$500,000 sum assured

NTUC Income logo
NTUC Income logo

Monthly Premium

S$28.50

Monthly Premium

NTUC Term Life Solitaire

Max. Renewable Age

74

Min. Critical illness Coverage

S$500,000

Max. Renewable Age

74

Monthly Premium
Reference Premium Profile
The Monthly Premium shown is for illustration purpose only. It is calculated based on an annual premium for a 30-year-old, male, non-smoker with a policy term of 20 years and S$500,000 sum assured.

S$28.50

Apply NowApply directly on MoneySmart

More Details

Key Features

  • The Monthly Premium shown is for illustration purpose only. It is calculated based on an annual premium for a 30-year-old, male, non-smoker with a policy term of 20 years and S$500,000 sum assured.

  • Choose a policy term of 10, 15, 20, 25, 30, 35 or 40 years. Alternatively, you can choose a policy term of up to age 64, 74, 84 or 100 (last birthday)

  • Enjoy guaranteed policy renewal with coverage up to ALB 100

  • Term Life Solitaire provides coverage of S$500,000 or more

  • Complimentary one-time medical concierge service14 with minimum sum assured of $3 million

  • Enjoy access to exclusive privileges with Income's Solitaire Club

See all card details

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 3 years. If they manage to quit during these 3 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 S$500,000 sum assured

Manulife logo
Manulife logo

Monthly Premium

S$26.81

Monthly Premium

Manulife ManuProtect Term II

Min. Death and TI Coverage

S$75,000

Min. Critical illness Coverage

S$25,000

Max. Renewable Age
Applicable to R&C plan only
R&C refers to "Renewable and Convertible" plan. This policy is guaranteed renewable, without evidence of health, at the end of the policy term for the same duration.

85

Monthly Premium
Reference Premium Profile
The Monthly Premium shown is for illustration purpose only. It is calculated based on an annual premium for a 30-year-old, male, non-smoker with a policy term of 20 years and S$500,000 sum assured.

S$26.81

Apply NowApply directly on MoneySmart

More Details

Key Features

  • The Monthly Premium shown is for illustration purpose only. It is calculated based on an annual premium for a 30-year-old, male, non-smoker with a policy term of 20 years and S$500,000 sum assured.

  • Choose from flexible policy terms of 5-10 years for Renewable & Convertible (R&C) policy or 11-40 years for Level & Convertible (L&C) policy

  • Enjoy guaranteed policy renewal till age 85 without further medical underwriting

  • Choose to convert your policy to other life insurance plans during your policy term

  • Benefit from the Quit Smoking Incentive where one can enjoy non-smoking premiums if they quit smoking within the first 3 years of their policy term

  • Get additional protection with riders for total and permanent disability, critical illness and premium waiver

See all card details

AIA Secure Flexi Term insurance

This plan, which offers a sum assured of $500,000 onwards, offers renewal terms of 5, 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

AIA logo
AIA logo

Monthly Premium

S$28.47

Monthly Premium

AIA Secure Flexi Term

Min. Death and TI Coverage

S$500,000

Min. Critical illness Coverage

S$50,000

Max. Renewable Age

101

Monthly Premium
Reference Premium Profile
The Monthly Premium shown is for illustration purpose only. It is calculated based on an annual premium for a 30-year-old, male, non-smoker with a policy term of 20 years and S$500,000 sum assured.

S$28.47

Apply NowApply directly on MoneySmart

More Details

Key Features

  • The Monthly Premium shown is for illustration purpose only. It is calculated based on an annual premium for a 30-year-old, male, non-smoker with a policy term of 20 years and S$500,000 sum assured.

  • Choose from renewable coverage terms of 5, 10, 20, 30 years or level terms up to age 65 or 75

  • Enjoy the flexibility to convert to an AIA endowment, investment-linked or whole life plan before age 70 without addition medical underwriting

  • Guaranteed renewal up to age 101 regardless of health condition

  • A Terminal Cancer Benefit is included under the policy

  • Customise your policy with the Total Permanent Disability (TPD) and Critical Illness coverage riders

See all card details

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 5 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 S$500,000 sum assured

Tokio Marine logo
Tokio Marine logo

Monthly Premium

S$26.75

Monthly Premium

Tokio Marine Term Assure II

Min. Death and TI Coverage

S$100,000

Min. Critical illness Coverage

S$100,000

Max. Renewable Age

80

Monthly Premium
Reference Premium Profile
The Monthly Premium shown is for illustration purpose only. It is calculated based on an annual premium for a 30-year-old, male, non-smoker with a policy term of 20 years and S$500,000 sum assured.

S$26.75

Apply NowApply directly on MoneySmart

More Details

Key Features

  • The Monthly Premium shown is for illustration purpose only. It is calculated based on an annual premium for a 30-year-old, male, non-smoker with a policy term of 20 years and S$500,000 sum assured.

  • Choose a 5 or 10-year renewable policy term depending on your protection needs. For even greater flexibility and assurance, pick a coverage term from 11 years up to age 85. Your premium will remain the same throughout the policy term

  • Enjoy guaranteed renewal without any medical underwriting, even after original coverage term has ended

  • Have the flexibility to increase your coverage upon reaching key life milestones

  • Convert your policy to a whole life or endowment plan up to your policy's coverage amount

See all card details

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 5, 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 5 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 S$500,000 sum assured

AXA logo
AXA logo

Monthly Premium

S$28

Monthly Premium

AXA Term Protector & Term Protector Prime

Min. Death and TI Coverage

S$100,000

Min. Critical illness Coverage

S$20,000

Max. Renewable Age
Varies depending on Policy Term
For policy term of 5,10,15,20 years, max. renewable age is 75. For policy term of 25 years, max. renewable age is 74. For policy term of 30 years, max. renewable age is 69.

75

Monthly Premium
Reference Premium Profile
The Monthly Premium shown is for illustration purpose only. It is calculated based on an annual premium for a 30-year-old, male, non-smoker with a policy term of 20 years and S$500,000 sum assured.

S$28

Apply NowApply directly on MoneySmart

More Details

Key Features

  • The Monthly Premium shown is for illustration purpose only. It is calculated based on an annual premium for a 30-year-old, male, non-smoker with a policy term of 20 years and S$500,000 sum assured.

  • Choose from renewable terms of 5 to 30 years or term-to-age coverage up to age 50, 55, 60, 65, 70, 75 or 99

  • Select from a wide range of payment options, from single payment to paying across your whole policy term

  • Enjoy guaranteed policy renewals without addition medical underwriting

  • Safeguard yourself against inflation with the Indexation Option for term-to-age policy holders

  • Convert your policy to another insurance plan that is best for your changing needs over the years

See all card details

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.

Still don’t know how to choose? Get in touch with a representative from MoneySmart for honest, no-obligation advice.

Found this article useful? Share it with someone who needs term insurance too.

The post 6 Best Term Insurance Policies in Singapore for Affordable Protection appeared first on the MoneySmart blog.

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Original article: 6 Best Term Insurance Policies in Singapore for Affordable Protection.

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