Pure life cover for a fixed term (10/20/30 years or to age X). No cash value — premiums are low. Pays out only if you die within the term.
Term life insurance provides a pure death benefit for a fixed coverage period — typically 10, 20, or 30 years, or up to a specified age like 65 or 75.
There's no investment or savings component. If you pass during the term, the sum assured is paid to your beneficiaries. If you outlive the term, the policy simply ends — no payout, no cash value.
Cost: term premiums are typically 5 – 15× cheaper than whole-life policies for the same death benefit. A healthy 30-year-old can get S$1 million of term coverage for S$500 – S$1,000 / year.
Right-sized: term lets you carry high coverage during your highest-need years (young family, mortgage, dependants) and naturally taper as wealth accumulates and dependants become self-sufficient.
Separation of insurance and investing: 'Buy term and invest the difference' — direct the premium savings into low-cost ETFs and you usually end up wealthier than blending the two via whole-life.
Income replacement: 10× your annual income is a common benchmark. Adjust up if your dependants are young or you have outstanding debt.
DIME framework: Debt + Income (annual × years to replace) + Mortgage + Education for kids. Total = your target sum assured.
Singapore considerations: CPF provides minimal death benefits beyond your account balance. Term coverage often needs to be larger here than in countries with substantial state survivor pensions.
DPI: a no-frills, no-commission term policy sold directly by MAS-approved insurers. Same coverage as standard term, ~30% cheaper because there's no agent commission.
Available from AIA, Aviva, Etiqa, FWD, Great Eastern, Income, Manulife, Prudential, and others. Apply directly via insurer websites — no agent involved.
Coverage limits: up to S$400,000 sum assured for death + TPD. For higher sums, you'll need a standard term policy through an agent or broker.
Best for: anyone confident in their own coverage calculation who doesn't need ongoing advice.
Pure life cover for a fixed period (e.g. 10, 20, 30 years, or until age 65/75). Premiums are low because there's no investment component. Pays the sum assured if you die during the term; expires with no payout if you outlive it.
10× your annual income is a common benchmark. Adjust upward if dependants are young, you have a mortgage, or have outstanding education costs to fund. The DIME framework (Debt + Income × years + Mortgage + Education) gives a more tailored number.
A no-frills, no-commission term policy sold directly by MAS-approved insurers. About 30% cheaper than agent-sold term policies because there's no commission. Sum assured capped at S$400k for death + TPD coverage. Best for buyers who don't need ongoing advice.
For most working Singaporeans with dependants, term wins — you get 5× – 15× more sum assured per premium dollar, fitting your highest-need years. Whole life is justified for estate planning where guaranteed lifetime payout matters.