Life Insurance in Singapore: Overview of Policy Types

If you have dependents or other people with whom you share your life, a life insurance policy will provide peace of mind and protection for your family in case something unfortunate happens to you. Life insurance in Singapore is becoming more and more popular with many people now realizing the importance and the benefits of a good life insurance policy.

Singapore has more than 140 registered insurers, of which about 20 are dedicated life insurers. There are plenty of choices when it comes to choosing a life insurance partner. Ever since the private life insurance industry was given a boost in 2000, when the government opened up the industry to foreign companies, the numbers of vendors and policies have multiplied.Some of the leading companies include American International Assurance, AXA, Great Eastern, HSBC and NTUC, each offering a variety of standard and unique products.

When deciding among various types of life insurance products available in Singapore, you should remember that the basic function of life insurance is to protect your family against financial loss upon your death or permanent disability. There are other functions such as savings and investment, as mentioned earlier, but the death benefits is the most common reason for taking out life insurance.

The cost of life insurance is based on your health, age, gender, and the type of policy you choose. The insurance company bases the premium by calculating the risk of your death. The older you are or the poorer your health, the higher the risk and the more expensive your insurance will be.

This article will help you understand the different life insurance products available in Singapore and some guidelines for choosing the life insurance product that’s right for your family situation.

There are two broad categories of life insurance products in Singapore – term life insurance and permanent life insurance. A term life insurance can be of type basic term life insurance and endowment life insurance. Within permanent life insurance products, they are further divided into whole life insurance, universal life insurance, and investment-linked life insurance

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