FAQ: Term Insurance Rates

1. The table below shows specimen premium rates for:

a) Level Term
b) Decreasing Term

The insurance period is for 10 and 20 years and up to age 65. The rates for females are lower than for males.

2. The premium rates are indicative rates, based on the mortality experience and expense loadings. They do not reflect the actual rates quoted by insurance companies in Singapore. These actual rates could vary from the indicative rates by about 20%.

3. In general, the premium rates for Decreasing Term is about 35% to 60% of the rates for Level Term. Under Decreasing Term, the sum assured reduces by an equal amount each year over the insurance period.

4. The premium payable for Decreasing Term expiring at age 65 is less than 0.1% of the sum assured at the younger ages and increases to 0.3% of the sum asured at entry age 45.

5. The premium payable for females are about 40% to 60% of the premium rate payable for males.

6. It is possible to get insurance for up to 5 years of income by paying a premium of less than 1% of income, at the younger ages.