Insurance, Whole Life Insurance

Best Whole Life Plans in Singapore

What is Whole Life Insurance?

Whole life insurance is a life insurance product which is guaranteed to remain in force for the policyholder’s lifetime provided that the full premiums are paid or until the maturity date of the policy. There will often also be a surrender value or cash value of the plan after it has been held for a specified period of time.

What do you have to consider before buying a Whole Life Insurance Plan?

Cash Value 

Even though buying a whole life insurance plan should not be solely looked as a savings plan, you can have the choice to surrender it as it has a cash value. When you buy life insurance, you have a surrender right – the opportunity to terminate your life insurance contract in exchange for its cash value. You can only do this if you’ve not made any claims before.

Duration of coverage

A whole life plan protects the policyholder for their whole life. This helps provide the peace of mind that the policyholder will still be insured if a medical emergency were to happen later on in the policy term. In contrast to a term life plan, the duration of coverage will end after the term. 

Premiums will not increase if diagnosed with a serious illness

The premium will remain the same after a critical illness payout (if this rider is part of the whole life plan). The premiums may even be less if there is a premium waiver rider that is part of the plan. This characteristic of a whole life plan ensures that your premium is kept affordable and does not increase if you have medical complications in the future. This is because medical conditions will affect the purchase of new insurance policies that require medical underwriting.

Limited pay 

Pay for a limited number of years for a lifetime of coverage. 

What types of Whole Life Plans are there?

There are 3 types of Whole Life policies:

Participating (Par) 

Payout sum assured and bonuses accumulated.

Non-participating (Non-par) 

Payout sum assured but does not include any bonuses. This plan usually has a guaranteed, accumulated cash value. 

Investment-linked policies (ILP) 

The higher of the sum assured or the value of the ILP units are paid out. Both the sum assured and the value of the ILP units are paid out.

Comparison Of Term Life And Whole Life

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PolicyPal’s Review of the Best Whole Life Plan

The best whole life plan for you would largely depend on your overall financial goals, risk profile and age. You should take into consideration the financial obligations that you currently have, this can be from your dependants living expense as well as your debts. Take note that during key milestones in your life, it is important to review if the coverage is still suitable now as it was 10 years ago.

Adjustable coverage amounts at key milestones

The AXA Life Treasure and AIA Guaranteed Protect Plus (II) provides this flexibility, as it allows you to review and change your sum assured at key milestones in your life. 

Another thing to consider is how customisable a plan is, given different financial and health concerns of individuals, some riders would be more relevant than others. While all plans do offer the additional Critical Illness rider, the Aviva MyWholeLife Plan III appears to have the most number of rider add-ons to choose from. 

Critical Illness coverage

The PRUActive Life has multiple options for enhanced critical illness coverage to add to their base plan. It also offers the multiplier benefit at any point in time to increase your coverage amount by up to 5 times. This is a good plan for policyholders that have a stable source of income and are able to maintain the policy over a long period of time. Alternatively, you may also consider paying the premium over a shorter term so as to not let the financing of the policy be a major concern over the long run. 

If you would a Whole Life Plan that has been created with the purposes of Critical Illness coverage, look no further than the Supreme Early Multiplier. The critical illness coverage for the plan does not have to be added as a rider or be purchases as a separate standalone critical illness plan. 

Retrenchment Benefit

The NTUC Income VivoLife and Manulife LifeReady Plus also have a retrenchment benefit coverage, which is particularly timely in our current recessionary climate. This benefit will provide 6-month premium waivers if the policyholder is retrenched. 

The fundamental difference between a Whole Life Insurance Plan and Term Life Plan is that there is a cash-value for your Whole Life plan and you have the option to surrender it for cash. This makes the Whole Life plan a significantly more expensive plan. 

Do note that if you surrender your plan, it means that you will no longer have insurance coverage. Therefore, it is important to consider if the cash value is an important quality to you or if protection coverage alone is sufficient. If you want to read more about Term Life Coverage you can click: Best Term Life Insurance Plans in Singapore

Case Study Illustrations:

For AIA Guaranteed Protect Plus II, it is suited for 

  • Parents for their children to secure insurability and competitive premiums at an early age for a lifetime cover

  • Young working-class who desires long term protection with cash value to meet increasing liabilities

  • Mature family looking to provide coverage on outstanding liabilities for financial stability

For Aviva MyWholeLifePlan III, it is suited for 

  • Individuals with dependents

  • Whole life coverage

  • Flexibility to tailor their protection needs

 

For Manulife LifeReady Plus, it is suited for 

  • Individuals with dependents

  • Whole life coverage

  • Flexibility to tailor their protection needs

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You will be able to enjoy a free financial portfolio review which will help you better understand how to create a suitable financial plan for you and your family. We will analyse life insurance products from over 20 insurers and present you solutions that are tailor-made to address your concerns. 

Our advisor will be more than happy to help you understand any of these insurance policies: 

  • Health Insurance
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If you would like to know more about a specific life insurance product you can let us know your preference. This is so that we can be better prepared during the appointment to present you with a comparison table if needed.

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