Best Life Insurance in Singapore 2019 - Seedly
 
Best Life Insurance
9 products
Updated November 2019
Compare and read real user reviews on Life Insurance in Singapore

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What is Life Insurance – Is it worth it?

“Funerals aren’t for the dead, they are for the living”

Remember this quote from The Fault in Our Stars?

Now, Replace funerals with Life Insurance and repeat the phrase.

Indeed, Life Insurance is designed to protect your family members who may depend on you for financial support in times of unfortunate events that may threaten your livelihood. Generally, it acts as a long-term financial safety net that provides compensation to your family members.

Hence, if you are the sole provider/ breadwinner of your family, or that you have dependents counting on you, it is extremely advisable for you to get it.

Which type of life insurance is better: Term vs Whole Life Insurance

With so many types of life insurance out there, it is no wonder that Singaporeans tend to avoid having a conversation about it for convenience sake. While it may appear daunting when it comes to choose the best life insurance for your needs, the importance getting covered should not be underestimated.

There are 2 main categories of products:

  • Term Insurance – Sometimes called unbundled products as they provide you with protection coverage for a fixed period of time without any investment feature.
  • Bundled products – Refers to whole life and endowment policies as well as investment-linked policies as these provide for protection and investment.

Here’s a comparison between the type of Life Insurance Plan that you can possibly buy:

Term Life

Purpose: For Protection Safeguard

Coverage: Cases of Death, Terminal Illness and total/permanent disability

Period of Coverage: Variable or up to a certain age

Guaranteed Death Benefit: Yes, Sum Assured

Guaranteed Cash Value @ End: NIL

Premiums: Regular Term

Surrender Penalties: NIL

Whole Life (Endowment)

Purpose: For Protection Safeguard & Savings

Coverage: Cases of Death, Terminal Illness and total/permanent disability

Period of Coverage: For Entire Life

Guaranteed Death Benefit: Yes, Sum Assured

Guaranteed Cash Value @ End: Yes, Savings with interest earned

Premiums: Regular Term

Surrender Penalties: Cash Value

Whole Life (Investment-Linked)

Purpose: For Protection Safeguard & Investment Returns

Coverage: Cases of Death, Terminal Illness and total/permanent disability

Period of Coverage: For Entire Life

Guaranteed Death Benefit: Yes, Sum Assured

Guaranteed Cash Value @ End: Yes, Earnings/ Losses from Investments

Premiums: Regular Term/ Single Lump Sum

Surrender Penalties: Cash Value

Whole Life (Universal Life)

Purpose: For Protection Safeguard & savings in a flexible manner

Coverage: Cases of Death, Terminal Illness and total/permanent disability

Period of Coverage: For Entire Life

Guaranteed Death Benefit: Yes, Sum Assured

Guaranteed Cash Value @ End: Yes, Earnings/ Losses from Investments

Premiums: Variable by the User

Surrender Penalties: Cash Value

Now that we have a clearer view about what are the differences between term and whole life insurance. But, between the 2, which is better?

There isn’t a definite right or wrong, but more of which is suitable. We have compared the key points and summarised the pros and cons for you.

Term Life

Best Suited for Students with low budget and Young Adults that just entered the work force

Advantages:

  • Cheaper Premiums per month/year

Disadvantages:

  • Once the Plan expires after the fixed period of time and that you have yet to make any claims, you would not receive anything at the end of it.

Whole Life

Best Suited for Children and Working Adults

Advantages:

  • Covers for your entire life
  • You can choose to either save or invest part of your premium, thereby potentially increasing your returns
  • Cash value returns

Disadvantages:

  • Much more expensive
  • Investments can go either way – it’s a risk to take.

When is the best time to buy a Life

Insurance?

NOW! There is no hard and fast rule to determine the best time to buy. In fact, the younger and healthier are when you purchase a life insurance, the less premium you have to pay and the higher coverage you will enjoy. Furthermore, you get insured earlier, so you won’t have to fret about what happens to your family when you suddenly pass away.

Best Life Insurance Plan Companies (Term and Whole Life) in Singapore

Here is the current list of Life Insurances with reviews that Singaporeans can compare before buying their

Which Best Life Insurance Plan To Get? How Much Coverage Do I Get?

So, how much coverage of term life or whole life insurance do you need?

To determine which plan is suitable, you can consider the following areas:

1.       Purpose of having the insurance in determining the type of Life Insurance

2.       Your health/ pre-existing illness/ lifestyle habits/smoking status

3.       Your income relative to your dependents

Alternatively, a quick guide to determining how much coverage you should use would be 5 times of your yearly income.

Furthermore, you can consider getting short term endowment plans.

Tools To Help You Choose The Best Life Insurance For You

To help Singaporeans make smarter personal finance decision, here are some tools to help you:

If you'd like more information you can

Check out our article(s) which will help you to pick out the best life insurance:

If you have questions about which life insurance to get after reading our Real User Reviews, why not ask our community of experts and experienced members at Seedly QnA? Best of all, you can even ask your questions anonymously if you're really, really shy!