Term vs Whole Life Insurance

In 2012, Life Insurance Assocaition Singapore (LIA) conducted a study and showed a protection gap of $462 billion for working Singaporeans and Perament Residents.[1] Hence buying an appropriate insurance cover to transfer this risk becomes essential. So what policies should you consider?


There are two main types of life insurance: term and whole life insurance. Let’s take a look at their product features.



Term Insurance

Whole Life Insurance

PurposePure ProtectionProtection plus some savings
Coverage Term

Up to specific age (eg. Age 65, age 70) or

For specific number of years (eg. 10, 20 years)

Whole Life or Till Age 99
Advantage·  Premiums are lower than whole life insurance

·  Accumulates cash value

·  Option to withdraw cash value

·  Premiums are generally fixed throughout policy term


·  No cash value

·  Premiums may increase with age upon renewal

·  Low cash value in the earlier years

·  Premiums are higher than term insurance


AnalogyRenting a house for a specific periodOwning a house


Now that you know the differences between term life insurance and whole life insurance, you can make an informed choice to find the best life for you and your family. Bear in mind, there are still a number of variables to take into account so speak to your life insurance agent who can help you evaluate each of the following aspects of your circumstances and determine whether term life or whole life is a better option for you.



Please note:

The information contained in this article is for general guidance on matters of interest only. While we made every attempt to ensure that the information contained herein has been obtained from reliable sources, we are not responsible for any errors or omissions, or for the results obtained from the use of this information. Neither the information presented nor any opnion expressed constitues a solication for the purchase or sale of any financial products. As such, before taking any action you should seek advice from an independent professional advisor.


Reach out directly for any questions today!

Main Contact Form

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest updates
and exclusive offers!