Why Term Life, in plain language
Term life insurance is one of the simplest ways to protect your family if something happens to you. You pay a fixed premium for a set number of years, and if you pass away or become totally and permanently disabled during that period, your family receives a lump‑sum payout.
Because term plans focus only on protection and not on savings or investment, they usually offer higher coverage at a lower cost than whole life insurance. This makes them popular for covering big responsibilities like your home loan, children’s education, and your family’s day‑to‑day expenses.
How much Term Life coverage do you need?
The right amount of coverage depends on your income, debts, and how many people rely on you. At a minimum, your term plan should help your family pay for daily expenses, big loans, and long‑term goals if you are no longer around.
When working out how much you need, think about:
- Monthly household expenses (food, utilities, transport, phone bills).
- Your home loan and any other debts (credit cards, personal loans).
- Your children’s education costs.
- How many years of income your family would need to replace
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💡 MAS Guideline The Monetary Authority of Singapore (MAS) Basic Financial Planning Guide by the Life Insurance Association of Singapore suggests this rule of thumb to have coverage equivalent to at least 9 times your annual income. This is a general benchmark — your actual needs may be higher depending on your obligations and family situation. |
If you have a family, a mortgage, or major financial commitments, you may need more coverage than you currently have. Equally, if your plan is oversized or no longer aligned with your needs, you may be overpaying for unnecessary coverage.
You may be overpaying for your Term plan
Term life insurance premiums can vary significantly across insurers, even when the basic coverage amount looks similar. Factors such as age, gender, smoking status, and policy structure can also affect how much you pay.
Some insurers offer notably more competitive pricing for females, while others offer better value once your coverage goes above S$1 million due to pricing tiers or discounts. Certain plans may appear expensive at lower coverage amounts but become highly competitive for higher sum assured.
If you bought your policy a few years ago and have not reviewed it since, there is a chance you are paying more than necessary for the level of protection you need today.
For example, you might have taken a large term plan when your children were young and your mortgage commitments were substantial. Ten years later, your outstanding loan may have reduced significantly and your children may be financially independent or nearing working age, meaning the same level of coverage or policy structure may no longer be necessary.
What our analysis revealed
We analysed term life plans from major insurers in Singapore for different ages and genders. Even for the same S$500,000 death, terminal illness and total permanent disability coverage up to age 65, the annual premiums differed by up to 53% between the cheapest and most expensive plans.
For example, a 30-year-old non-smoking male could pay as little as S$357.90 a year for the most affordable plan, or S$546.02 a year for the most expensive option for broadly similar core benefits. This is a difference of S$188.12 annually, or more than S$6,500 over a 35-year policy term.
Annual premiums for a $500,000 death, terminal illness, and total permanent disability cover:
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Age 30, Male |
Age 30, Female |
Age 40, Male |
Age 40, Female |
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Cheapest term plan |
$357.90 |
$285.40 |
$613.65 |
$456.00 |
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Most expensive term plan |
$546.02 |
$388.24 |
$757.00 |
$583.00 |
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Premium Difference ($) |
$188.12 |
$102.84 |
$143.35 |
$127.00 |
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Premium Difference (%) |
53% |
36% |
23% |
28% |
*Premiums are generated on 13 May 2026 for a non-smoker profile and are for illustration purposes only. Premiums are generated for term life plans available on FSM only. While we have made every effort to align them as closely as possible for this comparison, there may still be some benefit differences across the plans. Accurate as of 13 May 2026.
Annual premiums for a $1 million death, terminal illness, and total permanent disability cover:
|
Age 30, Male |
Age 30, Female |
Age 40, Male |
Age 40, Female |
|
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Cheapest term plan |
$567.45 |
$450.55 |
$976.25 |
$721.50 |
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Most expensive term plan |
$819.72 |
$582.36 |
$1,260.15 |
$922.70 |
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Premium Difference ($) |
$252.27 |
$131.81 |
$283.90 |
$201.20 |
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Premium Difference (%) |
44% |
29% |
29% |
28% |
*Premiums are generated on 13 May 2026 for a non-smoker profile and are for illustration purposes only. Premiums are generated for term life plans available on FSM only. While we have made every effort to align them as closely as possible for this comparison, there may still be some benefit differences across the plans. Accurate as of 13 May 2026.
Important note:
Our analysis of premiums is meant to help you understand how prices can differ across insurers. It is not a recommendation to cancel or switch your existing policy. Before making any changes, you should carefully consider your health condition, age, and underwriting requirements, as well as any waiting periods, exclusions or differences in benefits that may apply with a new policy.
Is your current protection plan still working for you?
It may be time to review your term plan if:
- You started a new job or your income has changed.
- You recently bought a home or refinanced your loan.
- You got married, had children, or now support your parents.
- You have not looked at your coverage in the last 3–5 years.
Markets change, premiums get repriced, and new plans are launched. A quick review can help you check if your coverage is still enough, and whether you are getting good value for the premiums you pay.
At FSM Global, we help you take a closer look at your existing term life insurance and identify opportunities to improve your coverage structure. Our review is designed to check whether your current plan still fits your needs, whether your premiums remain competitive, and whether your protection can be optimised for better value.
If there is a better way to structure your coverage, we will help you find it. And if you are eligible, we can also help you save more through our rebate program.
1. Coverage adequacy — We assess whether your current Death, TPD and critical illness coverage is sufficient for your life stage, income, and dependant obligations.
2. Premium benchmarking — We compare what you're currently paying against the market, so you know if you're getting value for money.
3. Restructuring options — Where there's room to optimise, we'll propose a plan structure that maximises your coverage while minimising your outlay.
4. Rebate maximisation — We'll identify which eligible policies qualify for our rebate program and factor that into your total cost of protection.
If you are already on a good plan, we will tell you so. If there is a better way to structure your coverage, we will show you the options so you can decide what works for you.
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🎁Our rebate programme: Already saving on premiums? Now save even more. Why pay more than necessary for the protection you need? With our rebate program, you may be able to enjoy additional savings on eligible insurance policies, helping to reduce your overall cost of coverage even further. Get up to 45% commission rebates on eligible insurance policies when you apply through FSM. These rebates are paid directly back to you — reducing your effective cost of coverage even further. Combined with choosing a competitively priced plan, the total savings can be substantial over the lifetime of your policy. If you are considering a new term plan or thinking about reviewing an existing one, this is the right time to explore your options. |
Get a complimentary protection review
Let us help you find the right plan, at the right price and help you save more with our rebate program. No obligation, no pressure.
Or click here if you have any other questions on your insurance
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Available Products on FSMOne Insurance |
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Term Life, Whole Life, Critical Illness, Annuity, Health, Endowment, General Insurance (Personal and Commercial) from AIA, AIG, Allianz, China Taiping, Cigna, Chubb, Etiqa Insurance, FWD Insurance, Great Eastern, HSBC Life, Henner, Income, Manulife, MSIG, Raffles Health Insurance, Singlife, Sompo, Tokio Marine, and QBE. *Please check with our team if the product you want is available on FSMOne Insurance |
Information obtained from:
https://www.mas.gov.sg/-/media/mas-media-library/news/media-releases/2023/basic-financial-planning-guide-2023.pdf
Information retrieved on 13 May 2026.
Disclaimer:
*More information on our commission rebate program can be found here.
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Insurance products are underwritten by the respective insurance partners and distributed by iFAST Financial Pte Ltd (“iFAST”). You are advised to review the specific terms, conditions and exclusions in the relevant policy contract.
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