With so many insurance companies offering term life insurance plans in Singapore, which is the best term life insurance plans for you?
“There is no best term life insurance plan, there is only the most suitable term life insurance plan.”
Each and every individual has unique needs and there is no one size fits all term plans. InterestGuru.sg presents a comprehensive list of the best term insurance that provide the best value for your money. Find out the Best Term insurance for your needs now!
- Best Term Life Insurance Plan for Cheapest Premiums: HSBC Life Term Protector
- Best Term Life Insurance Plan for Basic Coverage: Singlife Elite Term II
- Best Term Life Insurance Plan for Early Critical Illness Coverage: FWD Future First
- Best Term Life Insurance Plan for Limited Pay Premium Terms: HSBC Life Term Protector
- Best Term Life Insurance Plan for Smaller Coverage Amount : Etiqa Essential Term Life Cover
This list of The 5 Best Term Life Insurance Plans in Singapore is last updated on 03/09/2024
Why choose to get coverage via a term plan?
Term insurance provide the best cost to coverage ratio, at the expense of not generating a cash surrender value for your future years. As such, it is an excellent option for those that require coverage, yet facing budget issues for financial planning.
Life situations may also have changed, resulting in the need for increased coverage due to additional financial commitments for yourself or your dependents.
While generally not meant for lifelong protection, term plans can be a part of your financial portfolio to replace the financial losses to your income due to an unforeseen life condition.
Related article: Term Insurance vs Whole Life (Financial analysis and benefits comparison)
Related article: How much life insurance coverage do you need? *NEW*
How do we come up with this list?
Across all the insurance companies in Singapore, each term insurance are structured with their own product benefits and unique selling point.
The following criterias were considered in our term insurance review:
- Competitiveness of insurance premium
- Available options to customise and enhance coverage
- Scope of coverage for Critical Illness
- Scope of coverage for Early Critical Illness
- Terms and conditions to qualify for an insurance claim
- Product features with outstanding benefits to the policyholder
Note: This review of term insurance is not ranked in any order of priorities or preferences.
Best Term Life Insurance Plan for Cheapest Premium: HSBC Life Term Protector
HSBC Life Term Protector is running a LIMITED TIME Whopping 40% Perpetual discount on their term insurance! With this, HSBC Life Term Protector will give you the highest insurance coverage with the lowest premiums amongst all term insurance in Singapore.
Based on the premium payable and its definition of coverage, HSBC Life Term Protector should comfortably beat all other peers when it comes to a no-frills coverage.
What we like about HSBC Life Term Protector
- Affordable and competitive premiums
- Flexible premiums terms, including paying your premiums within a limited number of years
- Available in multiple currencies
What we do not like about HSBC Life Term Protector
- Early Critical Illness Rider is an accelerated rider, which means if a claim is done on Early Critical Illness rider, the Death Benefit will be reduced according to the sum assured claimed
- Total Permanent Disability (TPD) Rider coverage auto ends at Age 70, even if the rest of your plan extends beyond Age 70
Drop us a message or Whatsapp us to let a licensed financial adviser work out a comparison proposal according to your needs at no cost to you.
Refer to: HSBC Life Term Protector review
Best Term Life Insurance Plan for Basic Coverage: Singlife Elite Term II
Looking for basic Death and Total Permanent Disability coverage without any Critical Illness coverage? Singlife Elite Term II should be able to offer you the cheapest premiums if you do not need any coverage on Critical Illness. Singlife Elite Term II is now running a LIMITED TIME 30% Perpetual Discount on their basic coverage (Death) and Rider (Total Permanent Disability).
Interestguru.sg tips:
Just purchase your first private property? Just refinance your mortgage loan?
Do you know:
You can save some money by converting your Mortgage Reducing Term Insurance Plan to Singlife Elite Term II. Interestguru.sg encourages you to do a FREE financial portfolio review yearly, re-look into your existing policies and you could save some costs by doing some switching of plans!
Real-life case scenario for one of our clients
Mr and Mrs Tay recently purchased a private property and took up a bank loan of 1 million for a period of 30 years. They purchase a Mortgage Reducing Term Insurance Plan from the bank and was quoted a total premiums of ~$40,000 for a coverage period of 30 years, with the coverage reducing according to the remaining loan amount.
Our adviser quoted the client Singlife Elite Term II, with a 1 million Leveled coverage for Death and Total Permanent Disability for 30 years, and the total premiums is ~$26,000 for the same coverage term and a higher coverage amount. Our client saved a total of $13,000!
Contact us today for a non-obligated portfolio review for potential cost saving!
What we like about Singlife Elite Term II
- Early Critical Illness (ECI) Rider does not reduce the Death Benefit sum assured
- Total Permanent Disability (TPD) Rider provides coverage up to age 99
- Early Critical Illness (ECI) Rider provides coverage for Intensive Care Unit (ICU) and Benign/Borderline Malignant Tumour
- Covers up to 16 special conditions, one of the highest number of conditions covered among its peer
What we do not like about Singlife Elite Term II
- Slightly higher in cost when riders are added, but that is also because Singlife Elite Term II’s ECI rider payout does not reduce the Death Benefit sum assured
Drop us a message or Whatsapp us to let a licensed financial adviser work out a comparison proposal according to your needs at no cost to you.
Refer to: Singlife Elite Term II review
Best Term Life Insurance Plan for Early Critical Illness Coverage: FWD Future First
FWD Future First is the first among its peer to offer a reset coverage benefit for their Early Critical Illness (ECI) rider. If a claim has been done for the ECI rider, the rider benefit will remain in-force until the cover ends. After a 12 months no claim period, the ECI rider will restore it’s original benefit. This feature allows you to cushion yourself against a 2nd claim for CI without having a Multipay Critical Illness Plan.
Besides that, FWD Future First is also one of the first to offer coverage for spouse in the event the insured passed away. FWD Future First also provide coverages for Emotional Support, Legal Services and Home Care Support.
What we like about FWD Future First
- Early Critical Illness (ECI) Rider reset benefit cushion you against recurring Critical Illness
- Wide range of other benefits like Legal services, Emotional Support and Home Care Support
What we do not like about FWD Future First
- Slightly higher in cost
- Does not pay the sum assured if claim is due to unlawful acts
Drop us a message or Whatsapp us to let a licensed financial adviser work out a comparison proposal according to your needs at no cost to you.
Refer to: FWD Future First review
Best Term Life Insurance Plan for Limited Pay Premium Term: HSBC Life Term Protector
Yes, topping the ”best of ” chart twice, HSBC Term Protector allows you to pay your term insurance premiums for a limited number of years, taking this financial commitment off your retirement years! Choose to pay off your premiums within 15 or 20 years and get coverage comfortably till the end of the coverage term.
Of course, there are still pros and cons for paying off your term insurance within a limited period of time. Make your decision wisely!
Advantages of Limited Pay Premium Term in HSBC Life Term Protector:
- Payment of premiums settled in your active years, you do not need to worry about paying your premiums when you retired but still want your coverage.
Disadvantages of Limited Pay Premium Term in HSBC Life Term Protector:
- Change is the only constant on Earth. Your needs may change, new Term Insurance may improve and suit better for your needs. It will be a waste to switch out of your current term insurance if you have already fully paid for it.
Drop us a message or Whatsapp us to let a licensed financial adviser work out a comparison proposal according to your needs at no cost to you.
Refer to: HSBC Life Term Protector review
Best Term Life Insurance Plan for Smaller Coverage Amount: Etiqa Essential Term Life Cover
Just started working? Topping up your gaps for your existing coverage and do not need a relatively large sum assured? Then, Etiqa Essential Term Life Cover may be the plan you are looking for.
This is one of the most competitive Term insurance if you are looking for coverage under 1 million. Nothing fantastic to rave about for this term insurance, but it works just right for a no frills and affordable term insurance.
What we like about Etiqa Essential Term Life Cover
- An affordable no frills term insurance for coverage under 1 million
What we do not like about Etiqa Essential Term Life Cover
- Total Permanent Disability (TPD) Rider coverage auto ends at Age 86, even if the rest of coverage for your term insurace plan extends beyond Age 86
Drop us a message or Whatsapp us to let a licensed financial adviser work out a comparison proposal according to your needs at no cost to you.
Refer to: Etiqa Essential Term Life Cover review
What other options should you consider besides a term insurance?
If coverage is only required for a short time period, the insurance premium paid for a term insurance will be the lowest compared to other insurance policies.
Your age, budget, coverage period and investment risk appetite may result in alternative options that provide better value for your money.
You may wish to consider the following life insurance policies that provide high insurance coverage and wealth accumulation features:
- Whole Life Plans – Lifelong coverage with stable wealth accumulation
- Investment Linked Policies – Coverage with potential high investment returns
Read about: 3 things to consider before taking up a new financial product
Read about: 8 commonly made financial mistakes by Singaporeans
An alternative to term insurance: Whole life plans
In your 20s or early 30s, the total premiums paid over a limited period for a lifetime coverage may end up being lower compared to a term insurance. Not only is the overall premium lower, but a whole life plan will also accumulate a guaranteed cash value that increases over time.
The accumulated cash value can be withdrawn at your later life stages for other financial goals, such as a lump sum retirement payout or a monthly income stream.
Read about: 3 Best Whole Life Plans for Coverage and Wealth Accumulation (Updated)
An alternative to term insurance: Investment linked policies
Investment linked policies (ILPs) combines elements of insurance and investment to provide coverage and projected investment returns. An attractive feature of ILPs is that cash can be withdrawn from the available cash value within the policy.
Unlike a whole life plan, the cash value in ILPs is based on projections of investment returns. This projected financial cash values may have high fluctuations and such policies may not be suitable if you are reluctant to take on any form of risks.
Read about: 6 Best Investment Linked Policies in Singapore for Coverage and Wealth Accumulation (Updated)
Which term insurance is the most suitable for you?
Contact us using the form below and our panel of partnered financial planners will advise accordingly, based on your financial profile and protection needs.
All proposals provided are 100% free of charge with no obligation to take up any proposed financial products or services in any way.
We compare term insurance from all leading insurers in Singapore!
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Best Insurance Plans in Singapore
