How can I tell whether a policy is a life or savings insurance since both of them have death benefits?

Generally, life insurance coverage can be split into three life's major event,

1. Pre-Mature Death

2. Total & Permanent Disability

3. Critical Illness

Death Coverage

There are a couple of factors that we need to clarify and plan before we can establish whether there is a need for death coverage if you are single. For example, do you have any dependents? Do you have any liabiltiies?

Based on the latter example, just because you are single doesn't mean that your liabilities will be written off upon death. Therefore, there exists a need for proper estate planning to this end.

More Details:

5 Reasons why You need Life Insurance - Death Coverage

Total & Permanent Disability

Since you are alive and continues to live, there exists a need to be insured.

More Details:

5 Reasons why You need Life Insurance - Total & Permanent Disability Coverage

Critical Illness

Similar to the rationale for Total & Permanent Disability, there exists a need for you to be insured.

More Details:

5 Reasons why You need Life Insurance - Critical Illness

On the whole, these are general guidelines which may or may not work for you. Therefore, you are encouraged to conduct comprehensive financial planning. Through this process, it ensures that we are well-planned ahead in life.

Hi anon,

A saving insurance plan generally has a maturity value whereby a guaranteed amount will be paid, along with non guaranteed reversionary and terminal bonuses. The duration of the policy would generally be between 10 to 30 years.

The death coverage would be a very low multiple of the premiums paid, e.g. 101% or 105%

That is how you know the policy is meant for savings.

A life policy generally has a higher coverage amount compared to your premiums paid, and the policy duration would last longer, usually up till age 85 or longer.

If you are unsure still, you can provide more details such as the policy name and we can advise.