Life Insurance in Singapore
Compare term life rates →Life insurance exists to replace your income and settle your obligations if you can no longer provide for your dependants. In Singapore, the market is regulated by MAS and the Life Insurance Association (LIA). Despite high policy ownership, most Singaporeans remain significantly underinsured relative to their actual income replacement needs.
Types of life insurance
Term Life
Pure protection for a fixed period (e.g. 20 or 30 years). Pays out only on death or total permanent disability within the term. The most cost-efficient way to buy a large sum assured.
Best for: income replacement, mortgage coverage, young families on a budget
Whole Life
Coverage for life with a savings component. Premiums are significantly higher than term for the same sum assured, but the policy builds cash value you can surrender or borrow against.
Best for: legacy planning, those who want guaranteed lifelong cover with a savings element
Investment-Linked Policy (ILP)
Premiums are split between protection and investment in unit trusts. Returns are not guaranteed and coverage can lapse if fund value falls too low. MAS requires advisors to disclose all charges.
Best for: only if the investment component suits your risk profile; often better to separate insurance and investing
Critical Illness (CI)
Pays a lump sum on diagnosis of a covered condition — typically the 37 critical illnesses defined by LIA Singapore. Does not replace life insurance; supplements it for medical expenses and income during recovery.
Best for: complementing a term or whole life policy, especially with family history of serious illness
How much cover do you need?
A common starting point is the DIME method — add up your Debts, Income replacement need, Mortgage, and Education costs for dependants. LIA's industry data suggests most Singaporeans are covered for less than half their actual income replacement need.
| Component | Rule of thumb |
|---|---|
| Income replacement | 9–12× annual income |
| Mortgage payoff | Outstanding loan balance |
| Dependant education | Estimated future costs |
| Final expenses | S$15,000–S$30,000 |
What CPF already covers
- —MediShield Life covers large hospitalisation bills — it is not life insurance.
- —Home Protection Scheme (HPS) covers your HDB mortgage on death or TPD — check your CPF statement to confirm coverage.
- —Dependants' Protection Scheme (DPS) provides up to S$70,000 term cover, auto-enrolled when you first use CPF. Low cost but low sum assured.
- —DPS and HPS together are rarely sufficient as standalone cover for a family with dependants.
Questions to ask before you buy
- —What is the total sum assured, and does it cover my actual income replacement need?
- —Is this term or permanent cover — and do I need it for life or just until my dependants are independent?
- —What are the exclusions, especially for pre-existing conditions?
- —What are the total charges over the policy lifetime, including distribution costs?
- —If there is a savings or investment component, what is the guaranteed vs non-guaranteed return?
- —Is the advisor independent (FA) or tied to one insurer?
Ready to compare?
Monthly premiums from Singlife, FWD, AIA, NTUC Income, Great Eastern, Manulife, and Prudential.