Singapore Guide · Insurance
General knowledge only; not about any particular insurer or product, and not a product recommendation or investment, tax or legal advice. Policy terms and official documents prevail.
Insurance Basics in Singapore
Before buying insurance, it helps to understand a few rules and concepts that apply across Singapore; every type of insurance becomes easier to understand after that.
Read →How Much Coverage? 9x for Death, 4x for Critical Illness
The Basic Financial Planning Guide by MAS and the industry gives rules of thumb for coverage: about 9 times annual income for death and total permanent disability, about 4 times for critical illness, and at most 15% of income on protection premiums.
Read →Participating Savings Insurance (including Income Plans)
Participating insurance pools policyholders' premiums in the insurer's participating fund; besides the guaranteed benefits in the contract, the policy can share part of the fund's results (bonuses).
Read →Investment-linked Policies (ILP)
An ILP combines insurance protection and investment funds in one policy; premiums buy units in the chosen funds, and the policy value moves directly with fund performance.
Read →Indexed Universal Life (IUL)
IUL is a type of universal life insurance whose policy account is credited according to the performance of a specified market index, with rules such as a floor and a cap; it is often used for high death benefits and family legacy arrangements.
Read →Variable Universal Life (VUL)
VUL is a type of universal life insurance whose account value moves directly with the performance of the investment portfolio held, with no floor; it suits families with larger assets who want to plan legacy while keeping their investment arrangements.
Read →Term Life and Whole Life Insurance
Life insurance pays the sum assured on the death of the life insured (some also on total and permanent disability or terminal illness), to replace family income, repay debts or leave a legacy.
Read →Critical Illness Insurance
Critical illness insurance pays a lump sum when the insured is diagnosed with a severe illness listed in the contract, to help with lost income, recovery and living costs during treatment.
Read →Medical Insurance: MediShield Life and Integrated Shield Plans
Hospital cover in Singapore is built on the government's MediShield Life; Integrated Shield Plans from private insurers can be added for higher ward classes and wider coverage.
Read →Personal Accident Insurance
Personal accident insurance pays out or reimburses when an accident causes death, disability or injury; premiums are relatively low, and it is often used to complement overall protection.
Read →Group Insurance and Employee Benefits
Group insurance is bought by an employer for its employees as a whole, commonly as part of employee benefits, with premiums usually paid by the company.
Read →Premium Financing
Premium financing means borrowing from a bank to pay part of the premium of a large policy (usually universal life), using the policy's cash value as collateral.
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