Whole Life Insurance Plans

What is a whole life insurance policy?

A whole life insurance policy provides coverage for life with add-on riders to cover for early critical illness, critical illness and other insurable events.

Some whole life policies will allow you to convert the accumulated cash values within the plan into an annuity with a regular payout, upon you reaching a specific age.

You pay premiums for a specific number of years, to age 65 or for a lifetime. Depending on your protection needs, coverage multiplier can be added to enhance your coverage values.

Related article: How much life insurance coverage do you need in Singapore?

How do we compare whole life insurance policies?

The following are some of the factors we use to compare the whole life insurance plans listed above. Depending on the availability of the selected plan, not all stated features may be applicable to you.

• The main features and coverage of the whole life plans (Built-in benefits)
• The additional features of the whole life plans (Via riders)
• The payout of the whole life plans in the event of an insurance claim
• The financial returns and premium payable for the whole life plans

Speak to us or seek professional advice to make an informed decision before making your long-term financial commitment for your whole life insurance coverage.

The main features and coverage of the whole life plans

The following refers to how an individual whole life insurance plan is structured for product benefits.

The following were considered for our comparison of whole life insurance plans.

• Sum Assured – The sum assured for the main policy and all related supplementary riders
• Premium – The amount of payment required on an annual basis for the Whole Life policy.
• Premium Term – The number of years you have to pay the premium for the Whole Life policy.

The additional features of the whole life plans

Your whole life insurance plan can be customised to fit your coverage needs with additional riders.

Individual whole life insurance plans may have their own unique features and types of additional coverage/ benefits.

• Supplementary Riders – Rider may be applicable or added to provided coverage or waive premium payment when an insurable event occurs.
• Supplementary Riders Multipliers – Multiplier on the riders in your whole life plan can enhance your insurance coverage, at a time when you need them the most.
• Product Specific features – Individual coverage terms and conditions for payout, depending on policy wordings.

The payout of the whole life plans in the event of an insurance claim

When a valid insurance claim is made, you would expect to receive a lump sum payout from your policy. The whole life plans are compared for their payout in the event of a medical diagnosis or death.

• Death Benefit payout – The amount paid upon Death, usually based is on the higher of the coverage amount or accumulated cash value.
• Other Medical claims payout – The condition and amount of payout for other insured condition such as: TPD, TI, Critical Illness and Early Critical Illness.

The financial returns and premium payable for the whole life plans

The comparison of the financial returns on your whole life insurance plans, for the premium you will be paying.

This allows you to better understand your potential financial gains, in the event that you wish to surrender and cash out your whole life plan for a lump sum payout.

• Cash Value – Consist of a cash value generated through investment returns by the insurer. Cash value varies depending on the investment performance of individual insurers.
• Cash Value (Guaranteed) – The minimum lump sum value u should receive, in the event that you choose to surrender your policy.
• Cash Value (Non-Guaranteed) – Additional lump sum you may receive, depending on the investment performance of the insurance company.
• Surrender Value – The cash value consisting of a guaranteed and non-guaranteed cash value. Surrendering your policy means any provided health and insurance coverage will stop.

A holistic approach is taken on the comparison of the whole life insurance plans, to ensure that you receive excellent value on both coverage and wealth accumulation features.

What should you consider when taking up a whole life insurance plan?

Whole life insurance policies are structured differently by insurance companies to meet the goals and objectives of individual policyholders.

It is very important to carefully consider and compare before deciding on the right whole life insurance plan.

Some of the factors you need to consider when taking up a whole life insurance plan.

Existing Coverage Shortfall

• How much insurance coverage do you require for protection purposes?
• What type of insurance coverage is lacking is your portfolio?
• Do you require coverage multiplier to boost the claim payout from the whole life policy?

Premium and Affordability

• How many years do you wish to pay the insurance premium for?
• Based on your needs, are you getting a better value with a whole life plan or term insurance plan?

Additional Features and Benefits

• Does specific product features add value for you, or are you paying for what you do not require?

Claim Payout and Surrender Value

• How much can you expect to receive should you surrender your whole life insurance plan?
• How much can you expect to receive in the event of a claim payout?

Have a clear goal in mind or discuss with a qualified financial advisor.

What else should you consider before taking up a whole life insurance plan?

The above pointers are not all the factors and reason to decided on the ideal whole life plans for yourself. Consider and plan your financial goals and objective based on your individual needs.

What are some of the best whole life plans?

The best whole life plan depends on your needs and objectives. Ensure that your whole life plan is structured closely to the type of payout you expect to receive, upon making a claim payout.

Refer to our in-depth review of the best whole life insurance plans in Singapore:

• The 3 Best Whole Life Insurance Plans in Singapore for Coverage and Wealth Accumulation
• The 8 Best Whole Life Insurance Plans in Singapore based on Product Features 

How do you read the benefit illustration for your whole life policy?

Refer to our 2 parts guide on understanding how to read the benefit illustration of an insurance policy.

• Understanding your insurance policies (Part 1 of 2)
• Understanding your insurance policies (Part 2 of 2)

Further resources on insurance planning

• Insurance Planning: How much life insurance coverage do you need?
• Insurance Planning: Where and how do you start?
• Insurance Planning: What should you budget for?
• Insurance Planning: How should I pay my insurance premium?
• Whole life insurance: Whole Life vs Term (Which is better)
• Whole life insurance: How does it work?

Have a question?

Click on any of the Get Quotes buttons and let us compare and match you with the right plans accordingly to your retirement goals.

Alternatively, we promised to reply within 24 hours when you drop us a message here.

Disclaimer:

• All results are based on the criteria selected and meant for non-smoker status by default.
• Results are intended as general information only and do not take into account the financial situation or particular need of any user or reader, any specific person or group of persons.
• Premium rates are based on the dates such rates were generated by us.
• Actual rates may differ from those currently offered by the respective insurers.
• Premium rates are for standard terms and do not take into consideration lifestyle, health condition, occupation or any other factors that may cause rates to differ or any policy coverage exclusions offered by the insurer, where applicable.
• It is recommended to seek financial advice from a qualified financial adviser for product suitability and its latest premium rates quotation before making a decision to purchase any financial product.
• In the event you choose not to seek advice, you should carefully consider if the product is suitable for you.
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