What are the key reasons why for the same coverage + benefits (term life + CI), different companies offer drastically different premiums?

We need more details to understand the situation in order to determine whether cheaper is better. Generally, it is impossible to have a 100% difference between two plans with exactly the same factors.

Since it is a term insurance policy, it will be good to find out the type of term insruance policy, and its coverage term.

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Types of Term Insurance Policies in Singapore

In general, coverage for death is pretty much standard across all the plans, thus there is nothing much to discuss.

Next, for Total & Permanent Disability coverage, it will be good to check and confirm whether it is lump sum payout, or on an instalment basis.

Thereafter, for critical illness coverage, we will need to find out whether you are covered for major stage only, or with early stage coverage. Even for major stage, different insurers may cover different number of conditions.

For early critical illness coverage, the broader the definition, the better it is for you. Thus, cheaper may not always be the same. In like manner, if multi-claim is involved, ensure that you are paying for the right value.

Finally, there is a premium difference between an accelerated rider and a standalone rider. Therefore, you need to know exactly what you are paying for.

After we do an exact side-by-side comparison, there shouldn't be such a huge premium difference.

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Hi anon,

Perhaps you could provide a little more details about the plans you were looking at? 2x premium difference is unheard of for plans that cover the same conditions and coverage amounts.

I'm more concerned that the comparison you are trying to make is not apple to apple. This might be due to your understanding of the plans and how they work, their features, etc. That might lead you to taking up a plan that didn't fit your needs. The cheaper option is naturally the best option when all factors are the same, provided that all factors are the same.