Term insurance for death cover on the rise

SINGAPOREANS' protection gap in terms of death and critical illness cover has been a perennial concern. But in recent years - in terms of death cover - that gap appears to be closing.

This column focuses on death cover, and on term assurance in particular. These are plain vanilla plans that pay out a lump sum on death, and are typically bundled with total and permanent disability (TPD). These are non-participating, have no cash value and are significantly cheaper than whole life plans.

Based on a review of premium rates for specific ages - 35, 40 and 45 years old for male and female, for a sum assured of S$1 million up to age 70, the good news is that premiums are competitive. The annual premium for a 40-year-old male, for instance, ranges between S$2,000 and S$2,200.