Life Insurance Singapore

One moment, life is running smoothly, maybe a minor hiccup here or there but otherwise, it’s just smooth sailing. And then suddenly, one cruel act of fate can instantly turn our entire existence upside down. Such is life and we can do nothing but be prepared for when the worst might strike. Life insurance is one effective way to be be financially prepared for the uncertainties of the journey of life.

Life Insurance

What is Life Insurance?

Life insurance is basically a financial safety net which has been designed with the purpose of protecting you and your family against any unforeseen personal losses like permanent / total disability, critical illnesses or death. In case the insured passes away then the insurance company is required to provide the beneficiaries with a lump sum payment known as the Death Benefit.

In order to purchase an insurance policy, one is required to pay premiums. The flexibility of premium payment differs with each policy and depends on various factors like your age, your health status, family history, etc. The cost of premiums can also differ if an individual is susceptible to any serious / critical illness like cancer, heart disease, industrial accidents, etc.

Why do you need Life Insurance?

Life Insurance is necessary for a variety of reasons.

  • While money can never replace a person, it can help ease the financial burden in already difficult times of dealing with a personal loss.
  • Life insurance can help contribute to your peace of mind when you know that your loved ones will be well provided for in case the unforeseen happens.
  • Being unpredictable is one of the defining characteristics of life. Hence, all the more reason to safeguard ourselves and our loved ones against whatever life might have in store for us.
  • When it comes to improving your credit score, a life insurance policy can be considered an asset. Timely premium payment can contribute positively to your credit score making it easier for you to obtain a loan in the future.
  • Some insurance policies like annuities are designed specifically to provide retired individuals with a regular stream of income in lieu of a lump sum amount which they are required to invest in the policy.
  • Insurance isn’t just meant to protect individuals. It can also be taken to safeguard your business from any potential or unforeseen financial risk, liability or instability.
  • The passing away of a loved one is a very difficult time which also brings with it the burden of some sudden expenses. Life insurance can help reduce the monetary stress when your family is undergoing an already difficult time.

Types of Life Insurance

Term Life Insurance

As the name suggests, term insurance has been designed with the purpose to provide financial protection but only for a certain pre-determined number of years. Under term insurance, the premium amounts remain stable till the term of the policy, say 10 or 20 years. However, once the policy term is over, customers are given the option of continuing their coverage but at a hiked premium. Term insurance is ideal in cases where you would like to ensure the general financial safety of your family / beneficiaries and also meet financial commitments like debt repayment, upkeep of business, children’s education, etc.

Universal Life Insurance

Universal life insurance is more permanent in nature than term insurance. This particular type of life insurance provides flexibility when it comes to flexible coverage which is usually for a lifetime, along with flexibility in terms of premium amount. The two most popular uses of universal life insurance are: (i) flexible estate planning strategy where the wealth is preserved in order to be transferred to beneficiaries in the future, and (ii) when the need for coverage extends beyond an individual’s working years, Universal life insurance acts as long term income replacement. The most commonly found types of universal life insurance are:

(i) Policy is designed to allow the holder to build cash value while providing death benefit coverage.

(ii) Provides guaranteed Death Benefit coverage

Whole Life Insurance

Whole Life insurance is of a relatively permanent nature as it provides lifetime coverage. It is due to this reason that premiums for whole life insurance policies tend to be higher as compared to term life insurance. However, the premium value for these policies remains unchanged while the policy also enables you to create tax-deferred savings. Whole life insurance policies are also employed in situations where wealth requires to be preserved in order to be transferred to beneficiaries at a later stage.

Investment Linked Insurance

Investment linked insurance serves a dual purpose of protection and investment. These insurance plans not only provide insurance cover but also allow you to invest units in a managed fund. The performance of your preferred investment shall decide the price of your units. Investment linked insurance plans may or may not provide Death Benefit.

List of Companies Offering Life Insurance

Following are some of the leading life insurance providers in Singapore.

  1. Singapore Life
  2. AIA Singapore Private Limited
  3. AVIVA Life Insurance
  4. AXA Life Insurance
  5. Great Eastern Life
  6. Prudential
  7. Tokio Marine
  8. ETIQA
  9. NTUC Income
  10. Manulife Financial
  11. Generali International Life

FAQs – Life Insurance

  1. When is the right time to apply for a life insurance policy?

    Since life insurance aims to protect you and your loved ones against any unforeseen loss, it is advisable to apply for a life insurance policy when any major life event takes place, like for instance purchase of a new house / apartment, marriage, birth or adoption of a child or a getting a new job.

  2. My employer provides life insurance at my workplace. Do I still need to get a separate life insurance policy for myself?

    It is extremely beneficial if your employer provides life insurance cover. However, such insurance policies should just be treated as a starting point. By purchasing an additional life insurance policy, you can customize the cover and other important factors of the policy to specifically suit your needs.

  3. Should I replace my existing life insurance policy?

    It is not always advisable to replace a policy that is in force as it may attract new charges and fees. Also, in case of declining health, a new policy might require you to pay higher premiums or you may find yourself ineligible for certain beneficial riders with policies. Instead of replacing your existing life insurance policy, you could opt for riders to attach to your policy in order to enhance the protection it provides.

  4. I don’t have any dependents? Do I still need a life insurance policy?

    In case of no dependents, a life insurance policy can serve as a great investment tool. You can chose between a savings policy or an investment linked policy, both of which yield returns which are higher than bank interest rates. If you are a young individual, you can opt for a whole life insurance policy which features low premium amounts.

  5. How much cover is enough cover for insuring myself and my family?

    Insurance needs change from person to person. While a certain amount of cover may work for one person / family, it may not be adequate for another. Hence, the recommended thing to do is consult a financial adviser who can best assess your needs and give suggestions on the amount of cover you need accordingly.

  6. Given that I do not have a fixed amount of income each month, is there a provision where I need not pay fixed premiums towards my life insurance policy?

    In case you do not have a fixed amount of income flowing in each month, it would be advisable to go for a universal life insurance policy. This type of life insurance allows you the freedom to decide the amount of premium, how you would like to pay I and at what intervals. Additionally, not only do universal life insurance policies feature the Death Benefit but also allow you to earn interest on your cash value.

News About Life Insurance Singapore

  • HSBC Insurance Launches Online Platform

    HSBC Insurance has announced a digital platform that allows customers to purchase term-based life insurance products online. Called HSBC Insurance Online, it asks 3 simple underwriting questions and helps customers get on-board in a few minutes.

    Carlos Vazquez, CEO of HSBC Insurance (Singapore), said this platform has been designed to suit digital-savvy customers who prefer purchasing insurance products and investing online.

    HSBC Insurance Online currently offers 2 term-based life insurance options. HSBC Insurance Online Protector offers critical illness coverage of up to S$650,000 and up to S$1 million life insurance coverage. This product also offers insured members an unemployment benefit of deferring their premium payments for up to one year without paying interest. It also guarantees that customers can renew their policy every 10 years.

    The other option is the DIRECT-Value Term which offers policy terms of 5 years, 20 years, or up to the age of 65, with coverage of up to S$400,000. In a bid to encourage their customers to lead a healthy lifestyle, the platform offers premium discounts to those who answer additional questions related to their lifestyle. HSBC also has the Live Chat facility that gives customers constant support throughout their claims or sales journey.

    18 May 2018

  • Allianz to Buy Janashakthi’s General Insurance Subsidiary in Sri Lanka

    With the acquisition of Janashakthi’s general insurance subsidiary, Allianz will become one of Sri Lanka’s largest general insurer with a market share that is close to 20%. The deal is worth $106.9 million or LKR 16.4 billion and is in line with Allianz’s aim to strengthen its presence in the country.

    5 February 2018

  • Great Eastern Offers Cashback on its Insurance Products

    The Great Eastern Insurance Company is giving up to 15% cashback if you purchase their regular premium insurance products between 3 January 2018 and 31 March 2018. The offer is applicable on its protection and wealth accumulation plans.

    12 January 2018

  • Singapore Acquires Zurich Life’s Singapore Business

    Singapore Life has announced plans to acquire Zurich Life’s Singapore business with a portfolio of policies worth about S$6 billion in coverage. The deal is expected to be completed within H1 2018.

    08 January 2018

  • GIA to Organise Seminar on Cyber Threats & Insurance in Marine Industry

    General Insurance Association (GIA) and Singapore Maritime Foundation (SMF) plan to organise a seminar on cybersecurity concerns in the marine industry and the need for specific insurance policies to cover them.

    05 January 2018

  • Road Casualties in Singapore Hit Record Low During the First 10 Months in 2017

    Road fatalities from January to October 2017 has come down to 97 from 117, year-on-year. Growing awareness and strategic installation of cameras in the city are believed to be the main reasons.

    27 December 2017

  • Sony Life to sell Life Insurance products in Singapore

    Sony Life has set up a subsidiary in Singapore that aims to sell Life Insurance and financial advisory services in Singapore. It plans to do so by setting up agencies in malls. The Japanese insurer plans to set up over 50 agencies in a span of 10 years with the first agency to be set up and running by as early as the summer of 2018.

    When it comes to selling financial advisory services, Sony Life is in the process of establishing a local joint venture between themselves and the Tokyo-based Starts Securities Co Ltd. This joint venture will be a subsidiary of Sony Life’s Singapore subsidiary.

    Sony Life believes that sale of insurance products will go on smoothly as their strength lies in sophisticated consulting. Targeting Malls to capitalise on Singapore’s dense population will also help them find potential customers.

    This isn’t Sony Life’s first overseas venture. Back in 1990’s they had entered the Philippines market but due to poor earnings it was later shut it 2012. Now Sony Life has revamped their strategy and is now targeting developed markets.

    18 July 2017

  • China Life Insurance Singapore to be title sponsor for SNAG

    This year, the Singapore National Age Group Championships (SNAG) has a bigger reason to celebrate the 48th edition of the event. It has received a shot in the arm as China Life Insurance Singapore joins the list of its sponsors. The online portal will be the main sponsor for this swimming event.

    Similar to the last year's meet that happened in Kuala Lumpur, this year also the China Life Insurance Singapore SNAG 2017 will witness local swimmers fight it out to reserve a place in the SEA games team. This team will strive to get laurels for the Republic just like back in the 2015 Games where it bagged 23 gold medals.

    The event will be organized from March 10 to 19 at the Singapore Sports Hub's OCBC Aquatic Centre.

    Chief Executive of China Life Insurance Singapore, Tony Chow said that the entity is excited to sponsor among the more important and awaited sporting events in Singapore. He also added that through this

    20 February 2017

  • Provident introduces robot-adviser for life insurance products

    Provident, a fee-based retirement planning company, has introduced the first life insurance robot-adviser in Singapore. This tool is available on its website for life insurance packages: The tool is known as Selfcheck and it allows users to evaluate their life insurance requirements.

    Selfcheck will guide users by telling them what insurance product will suit their requirements, how much to invest, and also explain if they have an excess or deficit in their coverage. The tool will also explain insurance-related particulars and their features such as healthcare, long-term care, critical illness, and disability income.

    Selfcheck advisers are not paid based on commissions. Hence, they will not force customers to buy products. DIYInsurance deals in after-sales service also. It gives up to 50% commission rebate and this will help customers save well. DIYInusrance does not sell insurance products offered by Great Eastern Life, Prudential, and AIA. However, Provident states that the assortment of products is sufficient for comparison.

    10 December 2016

  • China Life will raise overseas investments to 15% of the assets

    China Life Insurance Co. Ltd is planning to boost its overseas investments to 15% of the total assets from the current 2%. The company posted a 67% drop in the profits in the first half net profit due to the lower investment income. The main overseas investments will be logistics, property, hotels and retails. The insurer is also planning on teaming up with the large international private equity firms for investments. The names of the potential private equity partners were not disclosed.

    20 September 2016

  • Life Insurance sales shoot up by 20% for the second quarter!

    Consumers sought after single premium non linked, life insurance policies in order to remain stable amidst rising volatility in the investment market. This proved to be good news for the life insurance sector as sales went up by a whopping 20% for the second quarter. Life Insurance providers booked new business premiums worth $844.9 million from April to June this year as compared to $703.3 in the same corresponding time last year. The life insurance industry recorded an increase of 54% in weighted single premiums to $282.1 million driven by non-linked policies.

    19 August 2016


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