Perhaps the most famous insurance product, life insurance is key if you wish to safeguard and protect your family’s financial security in your unfortunate demise. Yes! If you wish to make sure that your family remains financially protected in your absence, life insurance is the way to go. And not to forget, one of the best things about purchasing a life insurance policy is that it gives you several options to ensure that you and your family remain financially secure – some policies allow for a guaranteed maturity benefit after the end of the policy term.
Well, there are several insurance providers that offer life insurance policies to Singaporeans. While banks are the most prominent institutions offering life insurance options, there are other financial institutions (non-banking) that offer comprehensive life insurance policies.
Investing in a life insurance policy comes with a host of benefits indeed. Tax saving benefits are the most common types of benefits that can be accrued upon purchasing a life insurance policy. Other benefits are lower premiums in correspondence with higher sums insured.
Let’s take a look at the 5 best life insurance policies in Singapore. We take a look at 5 of the best life insurance providers in Singapore and look at the various features that are available with the policies they offer.
Best Life Insurance Providers in Singapore
Below is the list of top life insurance providers in Singapore. Plans offered by each of these insurers come loaded with a host of benefits and features, each designed to offer uniqueness and depth. Let’s look at the most prominent features of policies offered by each of these financial institutions:
- DBS Life Insurance
- OCBC Life Insurance
- HSBC Life Insurance
- AVIVA Life Insurance
- Standard Chartered Life Insurance
DBS Life Insurance Singapore
As you might be aware, DBS is one of Singapore’s largest banks with operations spread across several branches. The bank is known for its life insurance product, besides also being known for its credit and investment products. Let’s take a look at the most salient features and benefits of the DBS Life Insurance product:
There are basically three types of life insurance policies offered by DBS – Term Life, Whole Life and Universal Life.
- Term Plan
- Term Plans are the most common types of plans and provide coverage for a specific period of time. Sum assured in the case of term plans are only paid-out in the event of the policyholder’s death. Term plans do not attract any form of maturity benefits. The premium in the case of term plans is much less and the sum assured is high.
- Whole Life Plan:
- A Whole Life plan is slightly different from a Term Plan – Whole Life plans are built to offer long-term benefits when purchased. DBS’s Whole Life Plan will ensure that a fixed amount is paid out in the event of the policyholder’s death, or during the time of surrender of the life insurance policy. The plan is active till the time the policyholder is alive or until the time he/she turns 99 years of age!
- Universal Life Plan:
- DBS’s Universal Life Plan is becoming far more popular these days, as the plan gives policyholders the flexibility of moving funds between the insurance component and the savings component of the plan. Children’s education and retirement are common areas where the Universal Life Plan can be of great assistance.
- Mortgage Plan:
- Mortgage linked Life Insurance is another type of term insurance that protects your repayments towards your home loan. With this plan, as your repayments reduce over the years, the remainder of the amount owed to the bank/financial institution is ensured, thereby ensuring your family’s financial security in the event of your sudden and unfortunate demise.
OCBC Life Insurance
OCBC is another top bank in Singapore that offers Life Insurance options to Singaporeans. Let’s take a look at the salient features of OCBC’s Life Insurance offering:
OCBC offers Whole Life Plans as well as Basic Term Plans.
- OCBC MaxLife Protector:
- OCBC’s MaxLife Protector is the Whole Life Insurance plan that requires you to make premium payments for 15 years, after which you will receive a guaranteed payout (depending on your chosen cover).
- During the term of this plan, you will also receive terminal illness benefits, permanent disability benefits as well as benefits in the event of your death (the amount will be paid out to your nominee).
- The MaxLife Protector Plan gives you the option to include riders – the MaxLife Care 2 and the MAxLife Rewards. While the Care 2 provides am additional critical illness cover, the MaxLife Rewards provides guaranteed yearly payouts after the end of the premium payment term.
- Basic Term Plans
- OCBC offers two plan options under its basic term plans – the OCBC Smart Life and the OCBC Smart Supreme.
- Smart Life Plan: Under the Smart Life Plan, the coverage can range from S$50,000 to S$100,000. The payout is 100% in the case of permanent disability or diagnosis of a critical illness and 200% in the event of accidental death.
- Smart Supreme Plan: The coverage under the Smart Supreme Plan is similar to the Smart Life Plan. Under the plan, however, an additional 10% payout is offered if the policyholder is diagnosed with stroke, major illnesses, bypass surgery and renal failure.
HSBC Life Insurance
HSBC is another top financial institution in Singapore and has comprehensive life insurance plans to offer Singaporeans. Let’s take a look at HSBC’s life insurance plans and the features and benefits under each plan.
HSBC’s life insurance plans come under its personal insurance offerings. There are basically two types of plans that are offered DIRECT – ValueTerm and the DIRECT – LifeProtector. Both of these come under HSBC’s Direct Purchase Insurance offering. Let’s take a look at each of these plans in brief detail:
- DIRECT – ValueTerm
- The ValueTerm product is fundamentally a term insurance product offered by HSBC and guarantees a fixed amount after a certain period of time. The maturity benefits are negligible, considering that it is a term insurance plan.
- Under the plan, a payout is guaranteed in case you are diagnosed with a terminal illness or in the event of your unfortunate demise.
- Direct – LifeProtector
- LifeProtector is a Whole Life product that offers guaranteed payouts including bonuses, halping your family to stay financially protected in your absence.
AVIVA Life Insurance
AVIVA is a top general insurance provider in Singapore, offering various insurance products including health insurance, travel insurance, home insurance, life insurance and more. Let’s take a look at AVIVA’s life insurance offerings and what you can expect upon purchasing a life insurance policy from AVIVA.
AVIVA offers Term Life Insurance plans and Whole Life Insurance Plans. Under each of these plan types, there are three sub-plans in the offering. You can choose a sub-plan based on the features and benefits that are offered. Let’s briefly evaluate each of these plans offered by AVIVA:
AVIVA Whole Life Insurance Plans
- Coverage under the plan can go up to 275% of the total sum assured.
- The plan gives you the option of adding riders – disability and critical illness riders.
- You can choose to flexibly pay your premiums over a 15 year, 20 year and 25 year period.
- The plan provides investment options along with the insurance component.
- You can move your wealth from investment to the insurance component.
- Your nominee, life any other life insurance plan, will receive a guaranteed payout in the event of your death.
- You will get a guaranteed payout after the maturity of the plan.
- The plan offers a guaranteed payout in the event of your death and also if you are diagnosed with a terminal illness.
- You can receive monthly income payouts after the premium payment term.
- You can choose to pay your premiums over a 10 year, 15 year, or a 25 year period.
- MyProtector is a Term Plan that pays a lump sum amount to your nominee in the event of your unfortunate death.
- The plan allows you to add riders of your choice – permanent disability and accidental death.
- You will be paid a lump sum amount if you are a diagnosed with a critical illness as well.
- MyFamily Cover
- This is a plan that is specifically designed for families and offers guaranteed payouts during death and diagnosis of a terminal illness.
- Your family will receive a fixed income for a select number of years if your unfortunate death were to occur.
- The plan gives you options of adding relevant riders.
- This plan works just like a term insurance plan, only that a guaranteed amount is received at the end of the policy term.
- Under the plan, your nominee will receive 200% of the sum assured in the event of your accidental death.
- Premium payment terms can be 15 years, 20 years, 25 years or 30 years.
Compare & Review Best Life Insurance Providers in Singapore
|Insurer||Types of Life Insurance Plans||Notable Benefits|
|DBS Life Insurance||Whole Life Term Life Universal Life Mortgage Linked Endowment Plans||
• Flexible premium payments
• High insurance cover
|OCBC Life Insurance||Whole Life Plans Basic Term Plans||
• Low Premiums
• High life cover
• Riders can be added
|HSBC Life Insurance||One Term Plan One Whole Life Insurance Plan||
• Direct Purchase Plans
• Comprehensive Cover
|AVIVA Life Insurance||Whole Life Plans Term Plans||
• Several plans to choose from
• Flexible premium payments
• Can add riders
|Standard Chartered Life Insurance||Term Plans Endowment Plans||
• Flexible premium payments
How to choose the ideal life insurance policy in Singapore?
Well, there are several insurance providers out there, each offering products that come with impressive benefits. How then do you choose the ideal life insurance product? Well, let’s find out:
- Do extensive research on the products that are available in the market – check out several insurance providers before coming to a decision.
- Decide what type of product you want beforehand. If you want a product that only offers a death benefit to ensure your family’s financial security, a term plan would be idea. However, if you want to be protected as well as have a lump sum payout after the policy matures, you might want to choose a whole life or an investment linked insurance product.
- There are products that offer guaranteed payouts even in the event of you being diagnosed with a terminal illness. So, choose a relevant product if this aspect is on your mind.
- Depending on your capability to make payments towards premiums, you can choose a policy that allows for flexible premium payments.