Compare illustrative costs for term and whole life insurance based on your profile
Illustrative estimates only. Actual premiums vary by insurer, underwriting, and plan. Always get actual quotes from a licensed adviser.
Term insurance is pure protection: you pay a premium, and if you die or are diagnosed with a covered condition within the term, the policy pays out. If the term ends without a claim, there is no return of premiums (unless you have a return of premium rider). Whole life insurance provides lifelong coverage and builds cash value that you can access through loans or surrendering the policy.
A commonly cited financial planning principle in Singapore is to buy term insurance and invest the premium difference rather than paying for whole life insurance. The argument is that term provides the same protection at a fraction of the cost, and the premium difference invested over time may outperform the cash value accumulated in a whole life policy. Whether this holds depends on investment returns, discipline, and specific plan features.
Whole life insurance may make sense if you want guaranteed lifelong coverage regardless of future health changes, if you want a forced savings component with guaranteed returns, or if estate planning is a consideration. The guaranteed element of whole life is its primary advantage over investment alternatives.
This calculator provides illustrative estimates only. Actual premiums depend on your specific health underwriting, the exact plan features, and the insurer. MAS-licensed financial advisers can provide actual quotes across multiple insurers. The MAS Financial Institution Directory lists licensed advisers and insurers in Singapore.
There is no universally correct answer. Term insurance provides the most coverage per dollar of premium and suits those who want pure protection during their working years. Whole life insurance provides lifelong coverage and a savings component. The right choice depends on your specific financial situation and goals.
Term insurance premiums vary significantly by age, coverage amount, gender, smoking status, and health. As a general illustration, a 30-year-old non-smoking male might pay approximately SGD 800 to 1,400 per year for SGD 1 million of 20-year term coverage. Always obtain actual quotes from a licensed financial adviser.
You can take out a new term policy and surrender your whole life policy. Surrendering a whole life policy may result in a surrender value lower than total premiums paid, particularly in the early years. Get independent financial advice before making this decision.
Standard term insurance does not pay out if you outlive the policy term. Some plans offer a return of premium rider that returns premiums paid if no claim is made, but these riders significantly increase the premium and reduce the cost efficiency of term insurance.
Common riders include critical illness (lump sum on diagnosis of a covered condition), total permanent disability, early-stage critical illness, and waiver of premium. Riders add to the premium but can significantly extend the coverage provided.
⚠️ Insurance Disclaimer: This tool is for general educational purposes only and is not financial or insurance advice. Always consult a qualified financial adviser before making insurance decisions. Premium estimates are illustrative only and do not reflect actual insurer quotes.