Amount paid (monthly, quarterly, or annually) to keep an insurance policy in force.
The premium is the amount you pay to keep an insurance policy in force — annually, semi-annually, quarterly, or monthly. Stop paying past the grace period and the policy lapses.
Premiums fund both the actual cost of insurance (the actuarial expected payouts) and the insurer's operating costs, distribution commissions, and profit margin.
Age: the single largest driver. A 30-year-old pays a fraction of what a 60-year-old pays for the same sum assured. Premiums roughly double every 10 years past 40.
Health: smokers, BMI outside healthy range, pre-existing conditions all increase premiums or trigger exclusions.
Coverage type and amount: pure term is cheapest; whole-life + CI + TPD is multiples more expensive.
Term length: a 30-year term costs more than a 10-year term for the same sum assured (more years of coverage = more premium).
Riders: ECI, multi-pay CI, premium waiver — each adds materially to the base premium.
Level term: premium stays constant for the full term (10 / 20 / 30 years or to a defined age). Easier to budget; cheaper over the full term.
Yearly Renewable Term (YRT): premium starts very low but increases each year. By the late years premiums skyrocket. Trap for people who only see year-1 quotes.
Whole life: premium typically level for life (or for a limited-pay period of 10 / 15 / 20 years, after which paid-up status).
Almost always choose level over YRT for personal protection unless the coverage is genuinely short-term (< 5 years).
Annual payment: usually 2% – 5% cheaper than monthly because the insurer holds your money for the year and earns float on it.
Auto-debit via GIRO: avoids missed payment lapses. Most insurers offer.
Use CPF for eligible products: MediShield Life, CareShield Life, Integrated Shield Plan, and Dependants' Protection Scheme are paid from MediSave (subject to annual caps).
Tax relief: life insurance premiums qualify for tax relief only if your annual CPF contribution is below S$5,000. Most working Singaporeans exceed that cap, so the relief is rarely claimable.
The amount you pay to keep an insurance policy in force — monthly, quarterly, or annually. Premiums fund the actuarial cost of insurance, operating costs, distribution commissions, and insurer margin. Stop paying past the grace period and the policy lapses.
Age (the biggest driver — premiums roughly double every 10 years past 40), health (smokers, BMI, pre-existing conditions), sum assured, term length, coverage type (term cheapest, whole life most expensive), and riders. Lock in early while young and healthy.
Annual payments are usually 2% – 5% cheaper because the insurer earns float on the upfront sum. If cash flow allows, pay annually. Set up GIRO auto-debit to avoid missed-payment lapses regardless of frequency.
Yes for specific products: MediShield Life, CareShield Life, Integrated Shield Plan base premiums (subject to annual MediSave withdrawal limits), and Dependants' Protection Scheme. For most term and whole-life policies, premiums must be paid in cash.