What is the premium for term life insurance

Term insurance comes in two basic varieties—level term and decreasing term. These days, almost everyone buys level term insurance. The terms “level” and “decreasing” refer to the death benefit amount during the term of the policy. A level term policy pays the same benefit amount if death occurs at any point during the term.

Common types of level term

• Yearly- (or annually-) renewable term
• 5-year renewable term
• 10-year term
• 15-year term
• 20-year term
• 25-year term
• 30-year term
• Term to a specified age (usually 65)

Renewable term policies

Yearly renewable term, once popular, is no longer a top seller. The most popular type is now 20-year term. Most companies will not sell term insurance to an applicant for a term that ends past his or her 80th birthday.

If a policy is “renewable,” that means it continues in force for an additional term or terms, up to a specified age, even if the health of the insured (or other factors) would cause him or her to be rejected if he or she applied for a new life insurance policy.

Generally, the premium for the policy is based on the insured person’s age and health at the policy’s start, and the premium remains the same (level) for the length of the term. So, premiums for 5-year renewable term can be level for 5 years, then to a new rate reflecting the new age of the insured, and so on every five years. Some longer term policies will guarantee that the premium will not increase during the term; others don’t make that guarantee, enabling the insurance company to raise the rate during the policy’s term.

Some term policies are convertible. This means that the policy’s owner has the right to change it into a permanent type of life insurance without additional evidence of insurability.

“Return of premium”

In most types of term insurance, including homeowners and auto insurance, if you haven’t had a claim under the policy by the time it expires, you get no refund of the premium. Your premium bought the protection that you had but didn’t need, and you’ve received fair value. Some term life insurance consumers have been unhappy at this outcome, so some insurers have created term life with a “return of premium” feature. The premiums for the insurance with this feature are often significantly higher than for policies without it, and they generally require that you keep the policy in force to its term or else you forfeit the return of premium benefit. Some policies will return the base premium but not the extra premium (for the return benefit), and others will return both.

Why you should consider this plan?

• Highly customisable coverage made affordable

  Enjoy up to a lifetime of coverage for death, terminal illness and TPD1 from as low as S$0.86* per day. For enhanced coverage, you can add optional supplementary riders to cover for up to 121 CI conditions 2 .

• Secure your coverage in 10 minutes

  In just 10 minutes, simply fulfill two health questions online to boost your coverage for death, terminal illness and TPD1 to up to S$300,000. No appointments necessary.

• Assurance to convert your policy

  To meet your life’s changing needs, you may choose to convert3 the term plan and its rider(s) to a life policy offering cash value in the future, regardless of your health status.

How GREAT Term provides up to a lifetime of coverage

Let us match you with a qualified financial representative

Our financial representative will answer any questions you may have about our products and planning.

Understand the details before buying

* Based on a 25 years old non-smoker male who purchases GREAT Term with TPD benefit, with a sum assured of S$300,000 and policy term 40 years. The total annual premium is S$311.95, premium amount shown is divided by 365 days, rounded up to the nearest cent.

† Premium rates for the Living Care Rider and Complete Living Care Rider are not guaranteed and may be adjusted based on future experience.

1 TPD benefit is an optional supplementary rider that can be added upon purchase through a Great Eastern Financial Representative. Otherwise, the TPD Benefit is a compulsory rider when purchased directly online.

2 These critical illness riders can be added upon purchase through a Great Eastern Financial Representative but not applicable to policy purchased directly online.

3 Conversion privilege is applicable to GREAT Term, TPD Benefit, Complete Living Care Rider and Living Care Rider. The conversion privilege enables the riders to be converted (together with the basic plan) to a new TPD benefit or critical stage critical illness benefit offering equivalent or similar coverage (as determined by us), without evidence of insurability, provided that prevailing rules at the time of conversion are met. This conversion privilege is not applicable to policy purchased directly online. 

All ages specified refer to age next birthday.

Figures are subject to rounding in the illustration.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

The above is for general information only.  It is not a contract of insurance.  The precise terms and conditions of this insurance plan are specified in the policy contract.

As this product has no savings or investment feature, there is no cash value if the policy ends or is terminated prematurely.

You may wish to seek advice from a financial adviser before making a commitment to purchase this product.  If you choose not to seek advice from a financial adviser, you should consider whether this product is suitable for you.

This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the Life Insurance Association (LIA) or SDIC websites (www.lia.org.sg or www.sdic.org.sg). 

In case of discrepancy between the English and the Chinese versions, the English version shall prevail.

Information correct as at 11 January 2022. 

Whole Life or Term Life Insurance

What is premium term life insurance?

What are 4 types of term life insurance?

What is the best age to buy term life insurance?

How is term life insurance calculated?